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Old 07-25-2017, 06:22 AM   #1
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Insurance, full coverage vs. Liability

I was blown away by the premiums quoted for full coverage. My location and the size of the boat put my premiums over 15k/year for 100k of coverage. Liability is a must and it's cheep verses the other. What do ya'll carry? Im glad I don't owe any money on the "Rose".
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Old 07-25-2017, 06:50 AM   #2
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I have full coverage, but understand why your quote is so high. I'm sure part of it is age and construction material of the boat. Second, the boat is not easily pigeonholed as it's kind of unique for a pleasure vessel. That will always generate a higher insurance cost.

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Old 07-25-2017, 07:14 AM   #3
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I have full coverage, but understand why your quote is so high. I'm sure part of it is age and construction material of the boat. Second, the boat is not easily pigeonholed as it's kind of unique for a pleasure vessel. That will always generate a higher insurance cost.

Ted
Cannot agree wth you, Ted.

Marine insurance premiums are generated based on a number of factors, but the "uniqueness" of a vessel is not a factor. When I review risks, I look at:
  • Vessel type (power or sail)
  • Vessel age and size
  • Vessel construction material
  • Number of engines, fuel type, and speed of the vessel
  • Vessel usage
  • Loss history
  • Homeport and navigation area desired
  • Experience (or lack thereof) of the insured
  • Credit score and driving record of the insured

A custom or one off vessel will not generate a higher premium than a production Sea Ray or Carver.

As far as liability only vs hull and liability coverage- liability only is much less expensive, as we are not insuring the boat itself. That said, we have been requiring surveys on all risks, due to the poor material condition of many vessels requesting liab only.

Swampu-$15k for $100k of coverage? Something is wrong, or there's more to the story. PM me and let's chat.
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Old 07-25-2017, 07:18 AM   #4
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When I was shopping for coverage a couple of months ago, I was getting similar quotes for my sub $30k boat. I couldn't figure out why until I realized everyone was quoting me an "agreed upon value". When we used blue book, my premimum was literally cut in half. What was odd that the blue book value was the same number as the agreed upon value.

Hope this helps you.
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Old 07-25-2017, 07:21 AM   #5
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" -$15k for $100k of coverage? Something is wrong,"


Yes, that does not seem right. Here is something to think about - Most policies have a deductible. The higher the deductible, the less the policy costs. Can you afford to pay the first $1K of damage. The policy will be less expensive than one with a $250 deductible. How about towing? If you already have SeaTow or TowBoatUS, you can eliminate towing coverage from your policy. Personal items? If these are already covered in your homeowner's policy, you can eliminate that.


In any case, there is probably more than one company willing to insure your boat so shop around.
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Old 07-25-2017, 07:22 AM   #6
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When I was shopping for coverage a couple of months ago, I was getting similar quotes for my sub $30k boat. I couldn't figure out why until I realized everyone was quoting me an "agreed upon value". When we used blue book, my premimum was literally cut in half. What was odd that the blue book value was the same number as the agreed upon value.

Hope this helps you.
The "Blue Book" value will decrease every year.
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Old 07-25-2017, 07:38 AM   #7
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Towing, personal effects, and med pay are low cost and would have minimal impact on he overall premium. The deductible certainly will change the premium, but one has to factor in the cost benefit.

ACV (actual cash value) coverage is, in my opinion, not worth it. You do save some money- but paying for dimishing value based on conflicting valuation models (BUC, ABOS, Black Book, etc) is just not smart. ACV coverage does not take into account your purchase price, either.
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Old 07-25-2017, 07:43 AM   #8
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ACV (actual cash value) coverage is, in my opinion, not worth it. You do save some money- but paying for dimishing value based on conflicting valuation models (BUC, ABOS, Black Book, etc) is just not smart. ACV coverage does not take into account your purchase price, either.
My company gave me no choice. Once the boat reached ten years of age, they would no longer insure it for agreed upon value.

I can see their side - If it was insured for $150K and is now only worth $100K, I could profit from sinking it.
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Old 07-25-2017, 07:48 AM   #9
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WesK then change companies. Both my boats are insured for agreed value. The "new" one is 45 years old and the older one is 81.
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Old 07-25-2017, 07:59 AM   #10
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Glad to know your evaluation is comprehensive, Peter. In my experience (solid boat, good surveys, new safety & nav/comm systems, experienced rec boat owner, proven "hurricane hole" dock, etc.), the discussion stops with the age of the boat - in my case, a 1976. That seems to trump all other factors.

So I send my $ to the Brits that have insured it for the last 10 or so years, without competition, and hope they show up if something happens.

May be what you're encountering, Rose.
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Old 07-25-2017, 08:02 AM   #11
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WesK then change companies. Both my boats are insured for agreed value. The "new" one is 45 years old and the older one is 81.
Absolutely agree with the above

Our 1989 vessel carries an agreed value policy.
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Old 07-25-2017, 08:05 AM   #12
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Does the expensive policy cover hurricane damage?
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Old 07-25-2017, 08:11 AM   #13
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Well for me, I was getting quotes for $1300-$1400 for an agreed value of $30k. Going with the blue book dropped to $740. Huge difference, especially when the two values were the same.
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Old 07-25-2017, 08:13 AM   #14
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Does the expensive policy cover hurricane damage?
You'd have to read the policy language to answer that question factually.

Most companies that offer coverage in cat (catastrophic) areas do offer named storm coverage, with assistance for hauling out to avoid the storm.
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Old 07-25-2017, 08:17 AM   #15
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Absolutely agree with the above

Our 1989 vessel carries an agreed value policy.
But can you insure a $100K boat for $150K?
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Old 07-25-2017, 08:19 AM   #16
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Well for me, I was getting quotes for $1300-$1400 for an agreed value of $30k. Going with the blue book dropped to $740. Huge difference, especially when the two values were the same.
The values are NOT the same, Steve.

The AV (agreed value) policy will not dimish in value over time, and there is usually no deductible for total loss. AV policies are generally "all risk" policies, which means that the policy should respond to any situation other than those not specifically excluded.

The ACV policy will diminish over time, usually have a deductible for partial and total losses, and generally has a very specific list of named perils that they will cover.

Read the policy- there is more to them than just the numbers on the dec page.
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Old 07-25-2017, 08:23 AM   #17
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But can you insure a $100K boat for $150K?
Doesn't the insurance company rely on a third party, as in a surveyor, to come up with a value that both the insurer and insured then agree upon?
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Old 07-25-2017, 08:27 AM   #18
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But can you insure a $100K boat for $150K?
If I understand your question correctly- yes, a vessel that was purchased for $100k could be insured for $150k. Let's say the insured did a total electrical refit or repower of the vessel- I would take his repair invoices and factor them into the valuation of the vessel, along with the value of the engines(s) being removed and would allow for increased value based on the work done.

Maintenance items, replacement of wear items like cushions, flares or fire extinguishers, and other items are not considered.
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Old 07-25-2017, 08:54 AM   #19
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If I understand your question correctly- yes, a vessel that was purchased for $100k could be insured for $150k. Let's say the insured did a total electrical refit or repower of the vessel- I would take his repair invoices and factor them into the valuation of the vessel, along with the value of the engines(s) being removed and would allow for increased value based on the work done.

Maintenance items, replacement of wear items like cushions, flares or fire extinguishers, and other items are not considered.
Not what I was asking.

The boat was purchased for $150K several years ago. The estimated value now is $100K simply because of depreciation (it's several years older now).

Can it be insured for the original purchase price of $150K?
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Old 07-25-2017, 09:45 AM   #20
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If the vessel were currently insured at that amount, I would offer coverage to match his current value. Also, I would review the survey (if applicable).

If there were nothin grossly out of line, I'd offer coverage. Remember, the published depreciation info is subjective, and we have to look at all aspects of the risk.
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