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wake00

Insurance question

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wake00

Can anyone help me with marine insurance? My family just purchased a '02 Sportster LX, and my dad would like a good boater's insurance policy. I'm not sure what are some of the better companies out there, but could any recommend a good company. Thanks- Jason Biggrin.gif

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tgaugh

Boaters Insurance.

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Our boats are difficult for a traditional insurance company to underwrite because they typically look at horsepower and boat length. When they see 340 hp on a 20 foot boat, they automatically think high risk. We have our boat insured through a separate company specializing in ski boats. There are a few out there.

http://www.skisafe.com/

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edwin

State Farm here

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diehardskier

I use Progressive. For my 90 Skier the insurance was only about 320.00 per year. Thats with 500K liability and enough to cover the cost of the boat. I think I had it listed at about 12000.00 with 1500.00 coverage on items in the boat. It only cost me 58.00 more for the 01 Response and replacement coverage of 35,000.00. It still only covers about 1500.00 for items in the boat such as the stereo which won't touch replacement of it much less my sky ski though.

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RTS
State Farm here

Me, too. Maybe a little more in premiums, but I like having everything insured by one company...and a lifelong relationship with the same agent (and his daughter when we were both in high school Shocking.gifShocking.gif ) helps matters along when it comes time for a claim.

I did get the call about "how many horse power and how long did you say it was?", but all they wanted to clarify was if it would go 60 MPH or not.

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sv3854

I have DRIVE or progressive. I got a quote online and ended up just getting it from my insurance agent. The online estimate included $500K/year but $250K per incident. He said to make it $500K per incident and total per year because if you had an incident, they would drop you anyway after the first one. Minor details they throw on an online quote that you don't know.

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wake00

Thanks for all the responses everyone. Biggrin.gif I'm going to do some research and check all the different companies. Most likely my dad will go with a separate insurance company for the boat. We learned the hard way after Katrina that there's not much loyalty with insurance companies.

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Pistol Pete

Make sure you get a policy with the boat as "stated value"

Also, make sure all your equipment and accessories get covered under "personal property"

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martho
Also, make sure all your equipment and accessories get covered under "personal property"

Are you talking about Coverage C of your homeowners policy?

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Pistol Pete

No,

My homeowners dosen't cover the boat, at all from what I remember with talking to my agent. I don't know all the lingo either. I just remember discussing with my agent that I carry on-board ~$5K in sky skis, wakeboards, bindings, vests, and what not and we discovered that we needed to up one part (personal property?) to cover this equipment since it wasn't part of the boat.

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LS-One

After the poll that was on the board awhile back about the average Crew members income, some of you guys better rethink the $500k liability. Its only a lot until you have an accident. Hate to see someone digging in their own pockets.

Edited by LS-One

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Mike00LXI

As Pete said, you definately want agreed value (replacement cost coverage) and not actual cash value.

A good policy will have coverage for equipment on board as well as personal property of others. It's usually a seperate limit but sometimes just included in the agreed value amount.

The amount you insure the boat for should be what it would cost for you to go out and buy it new today if it were a total loss.

Also, $500k in liability limits is low IMO. The added cost for another half million in liability limits is negligable and trust me....$500k won't go very far in the event of a nasty accident.

I carry a $1MM umbrella policy and $500k liability limit on the boat and the extra cost for the higher limit is maybe a couple hundred dollars a year. To me that's worth the peace of mind that my personal assets are protected.

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martho
No,

My homeowners dosen't cover the boat, at all from what I remember with talking to my agent.

I would find an agent who knows how to explain things more clearly to you.

The HO policy will not cover the boat, itself (unless used to service the property and under a certain length/HP...No 'bu will fall in that category)

Coverage C of your HO policy is Personal Property. Personal Property is covered while anywhere in the world usually with two types of coverages.

The standard HO policies have 17 named perils and are on a named peril basis for PP. Other policies have exluded perils and all perils are covered unless excluded.

Clearly, your skis, skyskis, ropes, vests and other boating equipment would fall into the PP category. These items, regardless of value(not exceeding coverage C limit) would have potential coverage under the HO policy.

Another thought here. Let's say you add some type of additional coverage to a boat policy covering equipment associated with the boat. You run the risk of having concurrent coverage under two policies for the same items. When you have this happen, most policies have an "Other Insurance" clause. Many times you are required to file a claim with both the boat carrier and the HO carrier and let the carriers figure out what is owed. It often plays out that you get a pro-rata settlement based on each policy's limit of liability and pay two deductibles. Now, you have two claims, instead of one and you have paid two deductibles.

You also run into an ACV versus RCV issue. More than likely, your additional limit of liability with the boat policy will be ACV. Most HO policies have some type of RCV clause whether up front or after the item has been replaced in 180 days and you show proof of purchase.

Wanna mix it up even more??

Let's say life vests are specifically listed in the boat policy's extended coverage. If the boat policy's definition of "boating equipment" is life jackets, ropes, anchors and tackle, then those items are specificially insured. Any item which has specific insurance will be excluded by any other policy which may cover it. So, you have life vests which are specifically described in the boat policy's additional coverage(which is probably settled at ACV) the vests are excluded from your HO policy and the other items are settled pro-rata depending on limits of liability.

All this is based on each policy and the contract language. Remember, the contract is the contract. Neither party can change the wording. These are my intrepretations based on 10+ years in the industry, however I cannot guarantee each situation because I dont have all the contracts available to read.

I HIGHLY encourage you to read your policies and go through them thoroughly. Furthermore, most brokers do not understand the coverages and especially dont understand the settlements and/or limits of liability. There are couple insurance brokers on this board who have popped up previously who have a very good understanding of the policy/coverage. However, most do not.

Edited by martho

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SacRiverRat

Thanks Martho.. I was just typing that, and realized you already covered it Biggrin.gif

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martho
Thanks Martho.. I was just typing that, and realized you already covered it Biggrin.gif

I'm hiring people right now to work for me. Since you have a great insurance knowledge, wanna send me your resume? I would love to find someone as smart as me.

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Pistol Pete
Thanks Martho.. I was just typing that, and realized you already covered it Biggrin.gif

I would love to find someone as smart as me.

Me too!

And, I'm looking for a job right now. Surprised.gif

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Mike00LXI
No,

My homeowners dosen't cover the boat, at all from what I remember with talking to my agent.

I would find an agent who knows how to explain things more clearly to you.

The HO policy will not cover the boat, itself (unless used to service the property and under a certain length/HP...No 'bu will fall in that category)

Coverage C of your HO policy is Personal Property. Personal Property is covered while anywhere in the world usually with two types of coverages.

The standard HO policies have 17 named perils and are on a named peril basis for PP. Other policies have exluded perils and all perils are covered unless excluded.

Clearly, your skis, skyskis, ropes, vests and other boating equipment would fall into the PP category. These items, regardless of value(not exceeding coverage C limit) would have potential coverage under the HO policy.

Another thought here. Let's say you add some type of additional coverage to a boat policy covering equipment associated with the boat. You run the risk of having concurrent coverage under two policies for the same items. When you have this happen, most policies have an "Other Insurance" clause. Many times you are required to file a claim with both the boat carrier and the HO carrier and let the carriers figure out what is owed. It often plays out that you get a pro-rata settlement based on each policy's limit of liability and pay two deductibles. Now, you have two claims, instead of one and you have paid two deductibles.

You also run into an ACV versus RCV issue. More than likely, your additional limit of liability with the boat policy will be ACV. Most HO policies have some type of RCV clause whether up front or after the item has been replaced in 180 days and you show proof of purchase.

Wanna mix it up even more??

Let's say life vests are specifically listed in the boat policy's extended coverage. If the boat policy's definition of "boating equipment" is life jackets, ropes, anchors and tackle, then those items are specificially insured. Any item which has specific insurance will be excluded by any other policy which may cover it. So, you have life vests which are specifically described in the boat policy's additional coverage(which is probably settled at ACV) the vests are excluded from your HO policy and the other items are settled pro-rata depending on limits of liability.

All this is based on each policy and the contract language. Remember, the contract is the contract. Neither party can change the wording. These are my intrepretations based on 10+ years in the industry, however I cannot guarantee each situation because I dont have all the contracts available to read.

I HIGHLY encourage you to read your policies and go through them thoroughly. Furthermore, most brokers do not understand the coverages and especially dont understand the settlements and/or limits of liability. There are couple insurance brokers on this board who have popped up previously who have a very good understanding of the policy/coverage. However, most do not.

Having spent several years handling claims early in my career, I have to say that I highly doubt the insurance company would force you to make a claim against your homeowners policy as you outline above. While you are technically correct, it's a stretch that it would actually happen that way.

If you have an replacement cost policy then BOTH the boat and the equipment would be replacement cost, not acv.

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martho
If you have an replacement cost policy then BOTH the boat and the equipment would be replacement cost, not acv.

Not always. Remember, each section of the policy has a separate limit of liability. Often times the hull coverage and the trailer coverage have separate limits of liability and different settlement clauses. While I would agree the hull and trailer would usually have RCV(or stated value), I doubt the policies settle equipment and/or effects at RCV.

Anyone have their policy language available to cut/paste into this thread?

Also, technically correct is the only way to go. With an insurance policy, there is no grey area when it comes to other insurance. Some carriers may choose to interpret the language a certain way and those are your grey areas.

If there is other insurance, carriers are not necessarliy forcing the policyholder to make the second claim. The carrier is just calling the other carrier and filing the claim themselves. Happens every, single day.

Edited by martho

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jshap

I have a separate rider on my lakehouse HO insurance titled Marine Craft and equipment. It covers the replacement value of the boat and all equipment on it. The horsepower/length is listed, but not an exclusion. It just made it easier to pay it all in one bill. I also have an umbrella on my home HO insurance that covers me anywhere in the US (I think). I need to check if this would apply to boating though.

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apexeon

I've got SkiSafe as well. Get as much Liability coverage as you can and raise the deductable to compensate for the premium.

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