Boat Insurance

[DONTW8]

What has proven to be the best situation for me is to have all of my coverage with the same carrier for everything. My boat is cheap but fast, a 1991 Spyder outboard with a 150 HP GT Johnson. That way my liability coverage is for the house, boat & trailer, is $300,000 each occurrence.

Boat replacement is $7,500. I pay $209 annual for the boat coverage.

The benefit is under the one policy I get the best combined rate possible. I've been with the same agent for 32 years. The underwriter is Valley Property & Casualty, a subsid of Kemper, a Unitrin Business.

Total breakout:

Residence $815 annual, on $858,000 blanket property limit.

Boat $209 annual on $7500 physical damage limit.

Autos $500,000 liability each accident, $500,000 uninsured motorist, $50,000 property damage, $500 deductible collision, $200 deductible on comprehensive loss.

2007 Mercedes $481 annual with actual cost value damage limit.

2006 Porsche $794 annual with actual cost value damage limit.

2002 GMC duramax $427 annual with actual cost value damage limit

2002 Komfort travel trailer $91 annual with actual cost value limit.

For me what I have found in prior comparisons is with the advantage of the combined policy for everything I get a discount rate on the total package making the total cost reasonable. My problem is not the expensive boat but the $59,000 Mercedes (new) and the $110,800 Porsche (new).

My rate is annual; paid total once each year.

I would pursue the combined policy route because I do get a combined Package discount.

[Bill_AirJunky]

In our litigious society, if you make any money at all, you NEED umbrella ins.

Fixed it....

I have to agree. In fact, I'd venture to say that considering the wealth Dontw8 displayed (+$800k house, Mercedes, etc.) the $300k on the boat policy is almost undercovered. Due to USAW tournament regulations, I have $500k plus an umbrella, and nowhere near the rest of the wealth.

[Winz]

Just a Heads Up...as was discussed on a thread last year, be aware whether or not your policy has a "navigational period" or "lay up period" clause in it, which limits your coverage only to losses occuring "in season"...however that is defined by the policy.

Someone here hit an underwater stump in very early Spring (1 week before "navigational period" kicked in) and had the claim denied.

Unfortunately, that was me. The policy was a ski safe policy sold through Geico. I was not aware of the lay up clause that is normal for east coast boaters. The policy only insured the boat in the water from may 15 to october 15. Here in California, the season is much longer.

I hit a submerged log in the Sacramento river in late april. Total cost to repair was $9k. Ski Safe denied the claim. Big lesson - make sure you know what you are buying and make sure you read your policy.

I now insure through Westmar, a California based company. They saved me over 25% in premium, and they insure the boat in the water year around.

[Baddog]

Just a Heads Up...as was discussed on a thread last year, be aware whether or not your policy has a "navigational period" or "lay up period" clause in it, which limits your coverage only to losses occuring "in season"...however that is defined by the policy.

Someone here hit an underwater stump in very early Spring (1 week before "navigational period" kicked in) and had the claim denied.

Unfortunately, that was me. The policy was a ski safe policy sold through Geico. I was not aware of the lay up clause that is normal for east coast boaters. The policy only insured the boat in the water from may 15 to october 15. Here in California, the season is much longer.

I hit a submerged log in the Sacramento river in late april. Total cost to repair was $9k. Ski Safe denied the claim. Big lesson - make sure you know what you are buying and make sure you read your policy.

I now insure through Westmar, a California based company. They saved me over 25% in premium, and they insure the boat in the water year around.

Any possibility of suing Ski Safe for the $9K?

[Winz]

Just a Heads Up...as was discussed on a thread last year, be aware whether or not your policy has a "navigational period" or "lay up period" clause in it, which limits your coverage only to losses occuring "in season"...however that is defined by the policy.

Someone here hit an underwater stump in very early Spring (1 week before "navigational period" kicked in) and had the claim denied.

Unfortunately, that was me. The policy was a ski safe policy sold through Geico. I was not aware of the lay up clause that is normal for east coast boaters. The policy only insured the boat in the water from may 15 to october 15. Here in California, the season is much longer.

I hit a submerged log in the Sacramento river in late april. Total cost to repair was $9k. Ski Safe denied the claim. Big lesson - make sure you know what you are buying and make sure you read your policy.

I now insure through Westmar, a California based company. They saved me over 25% in premium, and they insure the boat in the water year around.

Any possibility of suing Ski Safe for the $9K?

I have appealed their decision based on doing the right thing for their customer. I feel they sold me a policy that was not fit for the market that I live in, and they were not upfront about the limitations of the policy. It is a business discussion. In a legal case I would lose as the contract states (albeit at the very bottom in fine print) that I am only insured in the water during the stated period. In the end, this may be a very expensive lesson that I hope others can learn from. I will tell you that Westmar is an insurance company by boaters, for boaters versus Geico/Ski Safe which is a NY based high volume company that seems more concerned with the bottom line.

[Bill_AirJunky]

..........versus Geico/Ski Safe which is a NY based high volume company that seems more concerned with the bottom line.

Bingo. Winner, winner, chicken dinner!

Do a Google search sometime. It's not all that uncommon.

[davemac]

I have appealed their decision based on doing the right thing for their customer. I feel they sold me a policy that was not fit for the market that I live in, and they were not upfront about the limitations of the policy. It is a business discussion. In a legal case I would lose as the contract states (albeit at the very bottom in fine print) that I am only insured in the water during the stated period. In the end, this may be a very expensive lesson that I hope others can learn from. I will tell you that Westmar is an insurance company by boaters, for boaters versus Geico/Ski Safe which is a NY based high volume company that seems more concerned with the bottom line.

Agreeing w/ the point about the policy not fit for the market...you might want to file a complaint w/ your State Insurance Dept. Unlikely you'd recoup loss, but you never know.

[Bill W]

Or just make it your business to know and understand what you are buying (or not) while saving a few bucks each year. I continue to see this type of story over and over again with the reasoning of "but I was saving $xx a year".

Considering the suits/judgments and damages that do occur with regard to boating and boat accidents, appears like saving a couple of bucks is awfully short sighted. Ultimately you are not buying a product but a service from your insurer. I'd suggest at least to use an insurance company with an agent who can help you navigate the no-brainers like a layup period for pete's sake. What happens when you have a claim while the boat is in storage or during the off season, a loss is your loss, plain and simple, think you are covered...think again.

[davemac]

Or just make it your business to know and understand what you are buying (or not) while saving a few bucks each year. I continue to see this type of story over and over again with the reasoning of "but I was saving $xx a year".

At my place of biz, we half-jokingly call this the "Walmart Theory"....the trend where the consumer solely fixates on finding the cheapest price...ignoring product, and service.

In this case of <boat> insurance, there is a lot more to consider than finding the lowest premium.

I still contend that it could be construed inappropriate and/or unethical for an Ins Company to have a (homogeneous) layup clause in a state that doesn't necessarily have an "off season"...as would be found in the northeast or midwest.

[msuwaterski]

I insure my boats and jetski's with State Farm. I pay about $330 a year on my Malibu ('93). I know I could insure it for less, but State Farm has always done right with me on auto, homeowner, and rental claims. I have worked with the same agent for 15 years and they are very customer service oriented. I also have $1 million liability coverage on the boat and jetski's.

[Faceplant409]

What has proven to be the best situation for me is to have all of my coverage with the same carrier for everything. My boat is cheap but fast, a 1991 Spyder outboard with a 150 HP GT Johnson. That way my liability coverage is for the house, boat & trailer, is $300,000 each occurrence.

Boat replacement is $7,500. I pay $209 annual for the boat coverage.

The benefit is under the one policy I get the best combined rate possible. I've been with the same agent for 32 years. The underwriter is Valley Property & Casualty, a subsid of Kemper, a Unitrin Business.

Total breakout:

Residence $815 annual, on $858,000 blanket property limit.

Boat $209 annual on $7500 physical damage limit.

Autos $500,000 liability each accident, $500,000 uninsured motorist, $50,000 property damage, $500 deductible collision, $200 deductible on comprehensive loss.

2007 Mercedes $481 annual with actual cost value damage limit.

2006 Porsche $794 annual with actual cost value damage limit.

2002 GMC duramax $427 annual with actual cost value damage limit

2002 Komfort travel trailer $91 annual with actual cost value limit.

For me what I have found in prior comparisons is with the advantage of the combined policy for everything I get a discount rate on the total package making the total cost reasonable. My problem is not the expensive boat but the $59,000 Mercedes (new) and the $110,800 Porsche (new).

My rate is annual; paid total once each year.

I would pursue the combined policy route because I do get a combined Package discount.

I strongly disagree with this. In Kalifornia, the trend (trend, not the rule...) is once you have a claim, at the next policy renewal they say "SORRY..." Do you want your auto coverage (actual necessity) or homeowners (actual necessity) canceled as a result of a boat collision? (boat insurance= not necessity.) I've seen it happen and every insurance professional I've posed that question to will not deny that it happens. I say diversify. You would never have all your investments in ONE stock, would you?

That said--- I use Westmar Westmar Insurance Services 866-241-2628

I have spoken to another insurance carrier several times at the boat show, when we still had boat shows... Gary at Twin Rivers Marine insurance --marine insurance broker- does not rep just 1 company.

He is the CEO and an agent. If I were not getting a great deal @ westmar, I'd go to him with no questions.

Make sure you get a "Marine" policy including: Agreed value, ALL risk coverage (Fire, theft, collision, UNDERWATER OBSTRUCTION damage, WATER SPORTS, trailering, storage, and (I forget the actual name...) environmental cleanup if your boat sinks and you spill oil/gas into the lake, it'll cost you a bundle if your insurance does not cover it.

rant off...

Patrick

Edited October 1, 2009 by Faceplant409

[85 Barefoot]

What has proven to be the best situation for me is to have all of my coverage with the same carrier for everything. My boat is cheap but fast, a 1991 Spyder outboard with a 150 HP GT Johnson. That way my liability coverage is for the house, boat & trailer, is $300,000 each occurrence.

Boat replacement is $7,500. I pay $209 annual for the boat coverage.

The benefit is under the one policy I get the best combined rate possible. I've been with the same agent for 32 years. The underwriter is Valley Property & Casualty, a subsid of Kemper, a Unitrin Business.

Total breakout:

Residence $815 annual, on $858,000 blanket property limit.

Boat $209 annual on $7500 physical damage limit.

Autos $500,000 liability each accident, $500,000 uninsured motorist, $50,000 property damage, $500 deductible collision, $200 deductible on comprehensive loss.

2007 Mercedes $481 annual with actual cost value damage limit.

2006 Porsche $794 annual with actual cost value damage limit.

2002 GMC duramax $427 annual with actual cost value damage limit

2002 Komfort travel trailer $91 annual with actual cost value limit.

For me what I have found in prior comparisons is with the advantage of the combined policy for everything I get a discount rate on the total package making the total cost reasonable. My problem is not the expensive boat but the $59,000 Mercedes (new) and the $110,800 Porsche (new).

My rate is annual; paid total once each year.

I would pursue the combined policy route because I do get a combined Package discount.

Just my opinion, but unless all of your assets are highly leveraged, and you spend every dollar you make (highly doubtful)you are WAAAY under-insured. If you don't have an umbrella policy you're liability limits and UM (even more important) are way too low. I don't know what you do, but if you have a quarter million dollars in cars, if somebody injures you, you better have coverage to protect yourself (UM), let alone more liability coverage than 500k to protect others. JMHO. I'd suggest you look into an umbrella, which is very cheap for the coverage it provides, or increase your limits substantially. Without knowing anything about your other assets, I'd suggest you look at a MINIMUM of a $3m liability umbrella, which can have UM application too. That's good piece of mind, especially for your family members and passengers who may not have a disability plan, which you may. ie, if your young daughter (or son, or whoever) is severely injured, a nice UM policy can ensure they're taken care of. Obviously I hope that doesn't happen, but it does every day and people have no idea how underinsured they are until it does.

Edited October 1, 2009 by 85 Barefoot

[calilsv]

I have boatus with a yacht policy, boat value of 55,000 and 4,000 for trailer. Cost me 549 a year. This is with 500k liability to match my umbrella policy from statefarm.

I've always been told even by my statefarm agent that you should have a boat separate from everything else. I have everything else from statefarm and could probably have a cheaper rate with my boat there also, but I chose to separate them. BoatUS was the cheapest I've found and are very reputable.