Big insurance increase from Geico/Boat US

[rslifkin]

Just wondering why are you guys need comprehensive ,what you get is your business of course, if you want it you should get it of course but I’m just wondering exactly what worries you ,around here they require 300,000 liability at the port or most of the marinas, in case your boat sinks or you have a fuel spill but other than that I don’t know. I got off the insurance gravy train a few years back after closing down my business, I don’t miss paying insurance $5 million hazmat coverage had to have it.I knew some Russian immigrants and I would ask them what’s it like doing business here compared to Russia and they would chuckle and say in Russia you pay the government ,hear you pay the insurance company.I know a metal fab guy here ,quite a bit of his work is replacing fuel tanks ,insurance company requirements for the commercial fishing guys

It all depends on the value of the boat vs money in the bank vs cost of insurance as far as whether liability only vs hull coverage makes sense.

 

[O C Diver]

Just wondering why are you guys need comprehensive ,what you get is your business of course, if you want it you should get it of course but I’m just wondering exactly what worries you ,around here they require 300,000 liability at the port or most of the marinas, in case your boat sinks or you have a fuel spill but other than that I don’t know. I got off the insurance gravy train a few years back after closing down my business, I don’t miss paying insurance $5 million hazmat coverage had to have it.

Liability: If you are retired and have any savings, pension, or assets, $300k of coverage is nothing. It's pretty simple to get a liability umbrella policy that also covers your boat. Millions in coverage can be had for below $1,000 annually. Just because you're not driving the boat or even on it, doesn't mean you're not liable for what damage it does.

Comprehensive: At less than 2% of insured value, it's a small cost for a six figure asset. When you consider all the things that can happen to your boat (even when you're not on it) theft, fire, sinking, storm damage, etc., it seems a pretty good deal. This year I will probably have spent more on EACH of these items than comprehensive insurance:

Total maintenance
Dockage
Fuel

If you use your boat and cruise as I do, insurance just isn't that big a cost of boating. This of course doesn't imply that you shouldn't shop for the best value.

Ted

 

[Scottwb96]

I've been using Travelers Yacht Insurance for about 3 years now. My premiums are about $2,240 per year. Went up $50 from last year ($2,190). I also have a fairly significant claim from 2+ years ago. Hit a submerged log...

 

[Bryant]

Insurance

Got my notice recently about new premium, a 24% increase from last year which was my first year. This brings the annual up to almost $2700. Keep in mind our season here is less than 6 months. I have had no claims. Only stated reason for increase "is to cover the rising cost of of providing insurance for your investment."
Anyone else get bitten? I guess it's time to do some shopping. I have USAA for all other insurance so I'll try them first.

Same thing happened to me. So I started shopping around. I spoke with many different companies and was told every time that they couldn’t come close to what GEICO was charging for the coverage I was getting. I sustained $50k damage in Hurricane Sally and they paid without any problems. I would stay with GEICO if I were you. You may find a smaller premium but it won’t be for the same coverage or customer service. When I was shopping around I learned that Allstate will only pay 5% of the value of the boat if they need to salvage it. That’s not nearly enough. GEICO is $500k for salvage. I had one salvage company tell me that they wouldn’t even deal with State Farm.

 

[83GB]

Gieco BoatUS for 1985 built 42 GB Classic

Mine went up 4% for full coverage. My boat stays in the water on the Alabama Gulf Coast year round.... 1/2 miles as the crow flies form the Gulf.

 

[Finally Fun Again]

Double check your USAA quote! I was searching for new insurance a couple years ago. Had just received a quote from Markel. USAA got back to me with their quote utilizing their partner, Markel. For exactly same everything, the USAA quote utilizing Markel was $2-$3,000 HIGHER. (PS We've used USAA for 50+ years but not for boat insurance!!!!!)

 

[mhaugh1144]

I use Chubb with my 38 Present trawler. Pricing is fine.

 

[Hippocampus]

I’m paying well less than half of what I paid on the prior boat. Also out from under the hassles of “owner/operator “. Storm requirements also dramatically less intrusive. Think vendors that service ocean and boats in the hurricane zones mitigate risk by raising premiums on their entire portfolio. Those that spend time in the zone regardless of carrier will see continuing dramatic policy increases. But even those not in the zone share those risks. Changed from US/Caribbean below 10 or above 40 in hurricane season to entire East coast (US/Canada) and Bahamas above 40 or on the hard during hurricane season. Tiedowns ever 10’ and steel cradle gone as Pantaenius required. No yacht management requirements nor me or licensed captain to move it if needed.

 

[psneeld]

Had to switch last year to Geico because old insurance didn't allow even on the hard in Florida during hurricane season.

So this year Geico is dropping me...Lucky it goes till next June.

Ove of the reasons I am selling.

 

[fryedaze]

I've been using Travelers Yacht Insurance for about 3 years now. My premiums are about $2,240 per year. Went up $50 from last year ($2,190). I also have a fairly significant claim from 2+ years ago. Hit a submerged log...

4 years ago we dropped Travelers because of a very large increase. We had a paid for a survey and switched to GEICO. The difference in price the first year covered a haul out and survey cost. At the time alot of people shifted to GEICO. I will find out in January if I stay or go.

 

[timb7734]

If you are trying to insure a boat with nav limits to the Great Lakes, join the Great Lakes Cruising Club for $150. They have an excellent arrangement with Travelers through Herbie Wiles agency in St Augustine FL, that covers only Great Lakes boats so that eliminates hurricane exposure for them.

We just renewed with Geico for no change on our Florida boat.


I think it is problematic to assume insurance companies are obligated to insure 1980-1990’s boats for 1980-90’s prices when repair costs and third party damage costs are from today plus inflation.

 

[BandB]

Shopping for insurance is a norm in today's world and not just for boat insurance. Only place I know where never having to shop exists is auto insurance and even then it might benefit you. I'd suggest to everyone shopping boat insurance to look at your auto coverage and just check out others to see if your deal is still best. In business we have to shop periodically, especially group health plans, but also physical coverage. In Florida, homeowners is a regular challenge. This is where it's essential to work with brokers who specialize and can help you. Our boat insurance is with Lloyd's. Doesn't mean any less shopping, just they do it. We notice regular changes in who our underwriters are.

 

[remwines]

When I received this years insurance renewal from the broker who is in Kentucky, the notice said the carrier, American Modern Insurance Group (AMIG), required a full in water and out of water survey. The survey and haul-out was over $1600.

After complying with AMIG's survey requirements, I revisited the new policy quote and considered their steady significant premium increases over the last few years. I took my new survey and started shopping. I have two other boats and most vehicles insured with Geico, but they would not cover my 1979 trawler due to age. I then contacted a broker in California where my boat is berthed. They work with several carriers and the best deal for my boating habits was with Progressive. I secured coverage with more agreed value for about 40% less in premiums. Progressive didn't even ask for a recent survey.

After reading some of these posts, I hope Progressive doesn't start jacking up premiums or cancel the policy due to it's age.

Bob

 

[BandB]

When I received this years insurance renewal from the broker who is in Kentucky, the notice said the carrier, American Modern Insurance Group (AMIG), required a full in water and out of water survey. The survey and haul-out was over $1600.

After complying with AMIG's survey requirements, I revisited the new policy quote and considered their steady significant premium increases over the last few years. I took my new survey and started shopping. I have two other boats and most vehicles insured with Geico, but they would not cover my 1979 trawler due to age. I then contacted a broker in California where my boat is berthed. They work with several carriers and the best deal for my boating habits was with Progressive. I secured coverage with more agreed value for about 40% less in premiums. Progressive didn't even ask for a recent survey.

After reading some of these posts, I hope Progressive doesn't start jacking up premiums or cancel the policy due to it's age.

Bob

I would caution anyone switching to progressive to compare page by page their new policy with their old. You'll see why Progressive is so much cheaper if you do so.

 

[markpierce]

Thank those who have no insurance claims. Keeping your rates lower than they might be.

 

[Hawkshaw1]

Latitude 34

https://www.latitude34insurance.com/

I faced the same plight and these folks were a huge help to me.

 

[OldDan1943]

So if I have an auto accident or my house burns down, your insurance rates will go up?
Thanks for sharing the loss.

 

[remwines]

I would caution anyone switching to progressive to compare page by page their new policy with their old. You'll see why Progressive is so much cheaper if you do so.

I agree with BandB that owners should weigh the differences in coverage between providers. I'll add that it should be based on their individual needs. That's why I wrote "best deal for my boating habits". Been boating for nearly 50 years, never submitted a claim, boat is berthed where there are no named storms/hurricanes/tornado's, average less than 100 hours per year of use, don't live aboard and mainly stay in the San Francisco Bay and delta region. So my boating habits are pretty low risk for the carrier. When I asked my previous insurance broker why rates shot up, the response was that is was due to many boats damaged or destroyed the previous year by weather events, the kind we do not experience here. Please do not take this as an advertisement for Progressive, but their coverage was more than adequate for my needs and I was happy that they would cover the my boat while so many others declined due to the boats age.



Bob

 

[SteveK]

Insurance is over rated. We need it for total loss. But I suspect the biggest payouts are for minor incidents that exceed the deductible. These small claims eat a lot of profit so rates go up to cover these losses (LOL).

 

[FlyWright]

One new feature in my Geico/BoatUS coverage this year us that they included the TowboatUS towing coverage I the policy so even though my tastes went up, I was able to avoid carrying the extra $160 tow coverage. The new tow coverage of the same as the TowboatUS coverage I had been carrying separately. YMMV

 

[BandB]

Insurance is over rated. We need it for total loss. But I suspect the biggest payouts are for minor incidents that exceed the deductible. These small claims eat a lot of profit so rates go up to cover these losses (LOL).

Actually the small claims are not what costs the companies and eat into their profits. It's the major claims and mostly the major major claims when from one event they have multiple boats totaled or with major damage. The small claims are predictable and manageable.

 

[Beeliner]

BOAT US increased my rates 35-40% this year. I called to discuss and they said that boat repairs have become more expensive. Decided to switch to Progressive. Lower price and better coverage.

 

[psneeld]

Even though most small boat incidents, even sinking don't require any or much environmental cleanup....if you ARE tagged for one, the price tag can easily exceed your hull/ salvage limit and is why that $800,000 plus coverage is offered in most policies.

I would get clarification on how to be covered for spills or other environmental damage before dropping a standard yacht policy for liability only or some other combo.

I have been told by adjusters, one of the biggest claims categories was canvas damage. A lot gets left up in storms and gets totally destroyed ( I know a lot does on purpose to get new stuff). A new enclosure is often north of $20,000 plus the fiberglass damage from it beating the boat.

 

[OldDan1943]

I would never claim the loss of canvas. I consider it a long term expensive expendable item.
My current canvas is 5 yrs + old and yes, it needs replacing. It is hurricane season so I guess I could wait for its destruction and then claim but I wont.
I suspect the first question the insurance company would be, "How old is it?", then depreciate it to next to nothing and make a note of the claim on my history.
Oh by the way, I dont make claims when my compartment fans stop either.

 

[BandB]

Even though most small boat incidents, even sinking don't require any or much environmental cleanup....if you ARE tagged for one, the price tag can easily exceed your hull/ salvage limit and is why that $800,000 plus coverage is offered in most policies.

I would get clarification on how to be covered for spills or other environmental damage before dropping a standard yacht policy for liability only or some other combo.

Environmental is a huge part because you can have $500k claim from a $50k boat. Think of how many years at 2% it takes to pay a 1000% claim.

Also, other areas where policies greatly differ include salvage coverage and include depreciation on partial damages. Then, of course, liability where the value of your boat is irrelevant, but there are really not a lot of liability claims paid. A lot of environmental though.

 

[DDW]

Think of how many years at 2% it takes to pay a 1000% claim.

500 years - in a pool of one boat. 6 months in a pool of 1000 boats. Which of course is the point of insurance of this type. In any 1000 boats, how many have 1000% claims? Can't tell you the answer to this, but insurance companies have highly paid statisticians who can.

The biggest problem to insurance rates seems to be the Gulf and lower Atlantic coasts, which generate a disproportionate loss history. The lowest costs should be available to companies that do not insure in these areas.

 

[O C Diver]

The biggest problem to insurance rates seems to be the Gulf and lower Atlantic coasts, which generate a disproportionate loss history. The lowest costs should be available to companies that do not insure in these areas.

You can also stay out of the area during hurricane season. My Chubb policy has me North of Savannah, GA from July 1st through November 1st. That reduces the cost by about half.

Ted

 

[Scooby5959]

Another option might be to look at your boat and reduce your exposure to statistically zero ,by making sure you take care of anything that might cause a claim Or more importantly money, inspect your fuel tanks have shut off valve to shut off crossover lines anything that might cause a fuel leaks , reduce underwater through Hull fittings to absolute minimum ,No flybridge canvas because I have no flybridge, I could go through a long list but if you think about it you can reduce your exposure to statistically zero

 

[DDW]

The statistical zero may be achievable from self inflicted harm, but is not achievable from external sources. If the neighbors boat burns and sets yours on fire, or an uninsured boater T-bones you, or you hit a dead head at speed are just as few of many such possibilities.

I have set my deductible as high as the insurance company will allow (10% of hull value) which increases my risk of a small los while maintaining insurance for a total loss.

 

[psneeld]

Lightning, storm wind/waves, failure from factory defects in hoses/seacocks/electrical components, electric fires in general, other people collide, vandalism....etc...etc...

All can be mitigated but to what degree and what would still be the outcome..... even on land in the middle of nowhere it would be relatively safe there.....but when on the water, too many factors creep up with you not able to control them.

Sure a lot of boaters go through a lifetime of no claims and just minor issues....but who is gonna bet serious money on sometimes near uncontrollable events?