Boat insurance question

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mike cunningham
Posts: 368
Joined: Sat Dec 20, 2008 11:21 am
Location: Jacqueline, F30 #3, Discovery Bay, California

Boat insurance question

Post by mike cunningham »

Hi all,

I am hoping there is someone here that can give me a little advice re insurance.

Any of us who use marinas or transit marinas usually have to demonstrate liability coverage in order to tie up for any length of time. I have this coverage and don't intend to change it. I do a lot of marina hopping when I am out and about. The boat is permanently moored at my dock at home.

However I just bought umbrella coverage as part of my home policy and they added a small $56 charge annually to cover boat liability from my boat policy limit $500K to the umbrella limit $2 Mil. That sounds reasonable.

But it did get me to thinking about my basic boat coverage. The darn premium goes up about 5% a year (Boat US/Geico) and it is getting pricey, around $325/year (OK OK, well, it's pricey to me, I have Scottish ancestry) anyway. I did a little bit of research and discovered I can do "agreed value" or "cash value". I currently have agreed value. The cash value is quite a bit less expensive but, of course, if you loose the boat you get market value, so the payout is not as rich. I wonder if anyone could comment on any additional hidden gotchas if I were to go the "cash value" route. I asked about dismasting and that would be covered either way assuming cost of new mast was not in excess of cash value of boat. The mast has always been my biggest concern in terms of loss.

Thought anyone?
Mike Cunningham
Freedom 30 (Mull) Hull #3
Build date...June, 1986 . Freedom Yachts USA, sloop, shoal keel
Gun Mount and pole retrofitted (purchased from a Hoyt Freedom 32)
Yanmar 2gm20F , 1600 hrs fixed two blade prop
e-rud and ocean racing equipment

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rvivian
Posts: 196
Joined: Sun Feb 21, 2010 2:08 pm

Re: Boat insurance question

Post by rvivian »

Mike -

I have BoatUS/Geico insurance as well and the premium is about the same as yours.

Looking at the prices for our F-30s on Yacht World; I think that "market value" will not cover a mast replacement or even a significant accident. They will total the boat! I know my "agreed value" policy won't do it either.

But I need the liability coverage in order to moor my boat in my marina slip and as a transient.

So - To me it is not worth much to go to the "market value" option just to save $100/yr. At least I'll get the "agreed value", whatever that is if I have a loss.

Speaking as one who once had a house fire -- with insurance companies that will still be a fight.
Heart's Desire
Freedom 30
Shelton, WA

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mike cunningham
Posts: 368
Joined: Sat Dec 20, 2008 11:21 am
Location: Jacqueline, F30 #3, Discovery Bay, California

Re: Boat insurance question

Post by mike cunningham »

Yea, dealing with the insurance company is my concern re agreed value. If the boat was lost I am positive they would do everything in their power to avoid paying. My agreed value is $35K. I am not exposed to severe storms or lightning strikes where I live so the significant risks would be fire, dismasting or collision with dismasting being my biggest worry given the age of the spar.

Maybe the thing to do is estimate to cost of a spar replacement and insure to agreed value at that number. I don't think a mast would cost $35K.... would it ???

Might be able to save a few bucks by reducing the agreed value to the cost of a new mast.
Mike Cunningham
Freedom 30 (Mull) Hull #3
Build date...June, 1986 . Freedom Yachts USA, sloop, shoal keel
Gun Mount and pole retrofitted (purchased from a Hoyt Freedom 32)
Yanmar 2gm20F , 1600 hrs fixed two blade prop
e-rud and ocean racing equipment

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rvivian
Posts: 196
Joined: Sun Feb 21, 2010 2:08 pm

Re: Boat insurance question

Post by rvivian »

There was a post on this site in 2015 by someone looking for a new mizzen mast for a Freedom and I think the cost was $10,000 or so plus shipping. More recently you and I were also posting with SVB???? about a new mast for his F30. He was looking for a used mast because he didn't think he could afford a new replacement for a boat valued at $25K.

Maybe just pay for liability insurance complying with your umbrella policy and meeting the requirements for transient moorage. If something big happens to our old boats I don't think they will be repaired. We will take the insurance settlement (or not if we don't have hull insurance) and just move on to a different boat.

Pick an agreed value you can live with if you want anything.
Heart's Desire
Freedom 30
Shelton, WA

Pearce
Posts: 35
Joined: Sat Feb 22, 2020 10:28 am

Re: Boat insurance question

Post by Pearce »

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In considering a cash versus agreed value policy recently I choose the agreed route. Depreciation on 30 year old boats could reduce the cash value quite a bit. It did not seem worth it to have to deal with the unknown of cash value if ever had to make a claim.

Would guess that an unrepairable mast scenario would be quite expensive and likely total the boat. Especially if the boom & sails were damaged at same time.

Practical Sailor had a great article about consequential damage language.

https://www.practical-sailor.com/subscr ... e-coverage

Here is there guide to insurance article

https://www.practical-sailor.com/uncate ... nsurance-2

Stay safe and avoid claims !
Pat
Schoodic - F36
Beverly MA

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Castaway
Posts: 246
Joined: Sat Dec 13, 2008 8:40 pm
Location: Lerwick, Shetland Isles

Re: Boat insurance question

Post by Castaway »

Mike Cunningham writes:-

" (OK OK, well, it's pricey to me, I have Scottish ancestry) "

I pay twice as much for my insurance, and I live in Scotland!

Regards,

Gerald Freshwater
Gerald Freshwater,
s/y 'Castaway', (UK F35 cat ketch, centreboard, 1987)
Lerwick Boating Club
Shetland Isles, Scotland

Pearce
Posts: 35
Joined: Sat Feb 22, 2020 10:28 am

Re: Boat insurance question

Post by Pearce »

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Not in line with the thread. But sailing around Scotland sounds like a great time !
Pat
Schoodic - F36
Beverly MA

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arrancomrades
Posts: 28
Joined: Mon Aug 22, 2016 7:11 am

Re: Boat insurance question

Post by arrancomrades »

That price seems very reasonable. I'm with Pantaneus who charge more but (mostly) have a good reputation. They are moving up market and would not now take me as a new customer, but I'm a perfect client with no claims in 19 years which means I've mostly paid off the value of the boat..... They held prices for many years but the last two hurricane seasons have cost them dearly and there have been substantial hikes in premiums.

Reducing the hull value has a direct impact on the premium. Uninsured boats are a curse and I support the marinas to ban them.

About 12 years ago I was sipping my tea-time Guinness at the Crinan Hotel (in God's Country) when the Islay Lifeboat brought in an alloy yacht which had burnt to the waterline, sufficient that the mast had fallen down - it was very calm and the couple escaped in their dinghy to be picked up quickly by a fishing boat. The boat was put alongside and the Fire Brigade sent a man with breathing apparatus in to finish off the fire. The wreck was slipped next morning and surveyed and Pantaneus paid the full write-off value by lunchtime - including two nights in the very smart hotel.

Regrettably, the couple went home to review their plans and maybe cancel the dream voyage.
Mike Johnston

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