Reply
 
Thread Tools Search this Thread Display Modes
 
Old 09-06-2019, 03:52 PM   #1
Senior Member
 
City: Santa Fe, NM
Vessel Name: High Slack
Vessel Model: Selene 43
Join Date: Aug 2013
Posts: 152
"Liveaboard insurance" vs. "cruising insurance"

I am buying a boat from a gentleman who will carry a small loan for about a year. As a condition of this short-term financing, he is requiring that I maintain appropriate insurance coverage until the loan is paid. I find this totally reasonable, and would have of course insured the boat in any event.

The wrinkle is that the seller is -- for some reason -- requesting that I maintain "liveaboard insurance" on the boat. I live in New Mexico, and I plan to cruise the boat throughout the PNW for 4-5 months/year. For the remainder of the year, the boat would be alone in its slip with occasional visits and short cruises. My understanding is that this is not "liveaboard."

Can someone out there in the insurance industry (looking at you PauHana) clarify for me what constitutes "liveaboard" status insofar as insurance is concerned? Does 4-5 months recreational cruising constitute liveaboard status for purposes of insurance?

Thanks !!!
Kawini is offline   Reply With Quote
Old 09-06-2019, 04:03 PM   #2
Guru
 
psneeld's Avatar
 
City: Ft Pierce
Vessel Name: Sold
Vessel Model: Was an Albin/PSN 40
Join Date: Oct 2011
Posts: 28,149
Let your insurance company decide...mine did.


It should be transparent to the former owner unless a lender can somehow b liable in any way.
psneeld is online now   Reply With Quote
Old 09-06-2019, 04:49 PM   #3
Guru
 
Pau Hana's Avatar


 
City: Seattle, WA
Vessel Name: Pau Hana
Vessel Model: 1989 PT52 Overseas Yachtfisher
Join Date: Aug 2012
Posts: 2,676
Quote:
Originally Posted by Kawini View Post
I am buying a boat from a gentleman who will carry a small loan for about a year. As a condition of this short-term financing, he is requiring that I maintain appropriate insurance coverage until the loan is paid. I find this totally reasonable, and would have of course insured the boat in any event.

The wrinkle is that the seller is -- for some reason -- requesting that I maintain "liveaboard insurance" on the boat. I live in New Mexico, and I plan to cruise the boat throughout the PNW for 4-5 months/year. For the remainder of the year, the boat would be alone in its slip with occasional visits and short cruises. My understanding is that this is not "liveaboard."

Can someone out there in the insurance industry (looking at you PauHana) clarify for me what constitutes "liveaboard" status insofar as insurance is concerned? Does 4-5 months recreational cruising constitute liveaboard status for purposes of insurance?

Thanks !!!
Hola!

For your lienholder, the only stipulation should be that you carry Agreed Value coverage with him/her named as the lienolder. This will ensure that, in the case of a total loss, the lienholder is made whole (the note is paid off, and any remaining funds will come to you).

Liveaboard coverages/endorsements generally extend the following coverages from onboard/while loading or unloading to anywhere in the world:
  • Liability
  • Medical
  • Personal Effects

In essence, this replicates the coverages of an HO-3 policy (standard homeowner's policy).

As a general rule, we (agents and underwriters) look at liveaboards in this way- your primary residence is aboard your vessel year round. For your situation, I see you as a seasonal cruiser, and (since you have a primary residence elsewhere) would have no need to offer you any liveaboard coverage.

I'd be happy to speak with your lienholder if you'd like.
__________________
Peter- Marine Insurance Guru at Novamar Insurance Group (206-350-5051) & tuna fishing addict!

1989 52' PT Overseas yachtfisher
Pau Hana is offline   Reply With Quote
Old 09-06-2019, 04:51 PM   #4
Guru
 
Pau Hana's Avatar


 
City: Seattle, WA
Vessel Name: Pau Hana
Vessel Model: 1989 PT52 Overseas Yachtfisher
Join Date: Aug 2012
Posts: 2,676
The only wrinkle I see is this- ensuring that there is a proper boatwatch/caretaker of the vessel due to the distance between your NM home and the boat...but that is easily solved.
__________________
Peter- Marine Insurance Guru at Novamar Insurance Group (206-350-5051) & tuna fishing addict!

1989 52' PT Overseas yachtfisher
Pau Hana is offline   Reply With Quote
Old 09-06-2019, 05:20 PM   #5
Moderator Emeritus
 
Comodave's Avatar
 
City: Au Gres, MI
Vessel Name: Black Dog
Vessel Model: Formula 41PC
Join Date: Jul 2015
Posts: 21,187
Yes, some insurance companies may require you to have a plan as to how you will be checking on the boat with you being a remote owner. There are companies that do it for a fee.
__________________
Boat Nut:
If you are one there is no explanation necessary.
If you aren’t one, there is no explanation possible.
Comodave is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Trawler Port Captains
Port Captains are TF volunteers who can serve as local guides or assist with local arrangements and information. Search below to locate Port Captains near your destination. To learn more about this program read here: TF Port Captain Program





All times are GMT -5. The time now is 04:39 PM.


Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2024, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.0
Copyright 2006 - 2012