My shiny new Insurance just got CANCELLED.

Kayenne · 10-21-2022, 01:48 PM

Hello Everybody,

I'm an annoying Newbie and got my new to me Trawler insured with Allstate earlier this month when I bought the boat.

Yesterday in the mail I received a lovely letter from Allstate stating they are now cancelling my insurance due to the age of the boat. I feel bad for the old girl as she isn't that old, not nearly as old as me.

Odd that a couple of weeks ago the boat was acceptable, but now - its too old! The insurance hasn't even been unwrapped yet.

Is this something you guys have come across often?

The boat is a 1986 and the letter is attached.

Thanks for any and all insights...

Newb out.

Kayenne · 10-21-2022, 02:10 PM

Not so good at this attaching business, but I believe I got it now...
Here is the letter I received.

ScottC · 10-21-2022, 02:13 PM

What does the broker have to say about this? It seems he should have not sold you this policy in the first place!

psneeld · 10-21-2022, 02:16 PM

Boat insurance was one of the reasons I got out of boating (at least for a while) as I can afford to play in the arena I was used to in boat size and operation...and I had the most discounts any company would offer.

Older boars are now on the blacklist for many insurance companies.

There will be a few viable suggestions shortly, so wait for them. Some may even suggest that depending on the bats worth you take partial insurance such as just liability, salvage and environmental which can be way more available for older boats. You just have to decide.

mvweebles · 10-21-2022, 02:29 PM

This topic comes up a lot, but not sure I recall the reason insurance companies won't insure an older boat. Actually, not even sure what type of insurance they object to - liability? Full coverage? Anyone know what exactly they take issue with?

Peter
(1970 Willard 36 - liability only in Mexico)

ofer · 10-21-2022, 02:40 PM

Quote:

Originally Posted by mvweebles

Peter
(1970 Willard 36 - liability only in Mexico)

Hi Peter, is your policy from a Mexican insurance company?

mvweebles · 10-21-2022, 02:42 PM

Correction. Via Baja Bound. Underwater is Chubb but is Mexico only. $300k liability. $500/yr.

Circumnavigator · 10-21-2022, 03:39 PM

We had no trouble insuring Fintry (1972 ex Royal Navy Fleet Tender, 79', 150 tons displacement) and the new owner also had no trouble. The fact that we're talking about an Allstate policy here suggests to me that possibly you need to go to a broker who specializes in boat insurance and not simply call the one who handles your Homeowners. While Allstate is a fine company, it does not come to mind as a good place to go for any but the simplest marine policy. I'm on the wrong coast to suggest a broker for you, but there are plenty of TF people who could.

Jim

mvweebles · 10-21-2022, 03:42 PM

Peter at Novamar 206-350-5051 gets frequent mention on TF. I have no personal knowledge, but would be my first call when I return to US.

Good luck. Please keep us updated.

Peter

PS - I wouldn't worry about location. Chances are he works with cruisers in many places.

Comodave · 10-21-2022, 03:45 PM

We have our insurance through Peter at Novamar. He is wonderful. And a nice guy too.

Pete Meisinger · 10-21-2022, 05:44 PM

Allstate is not a marine insurer. I have my boat insured with American Family which also is not a marine insurer. My feeling is this: insurance will cover any catastrophe like an oil spill or a personal injury on my boat but as far as really having my boat "insured", I am "running naked".

I am fortunate in that my boat is paid off, owes me nothing and I can afford to walk away from any loss.

pete

hytedin · 10-21-2022, 06:14 PM

Contact American Modern. They insured my 86 Marine Trader for stated value and liability,

Note: all you really need is liability, which shouldn’t be difficult to get.

wkearney99 · 10-21-2022, 06:25 PM

Quote:

Originally Posted by Kayenne

Yesterday in the mail I received a lovely letter from Allstate stating they are now cancelling my insurance...

I'd wonder if that 'cancellation' is going to be a black mark? Lord knows there's a ton of ways the insurance companies look to screw us, it wouldn't surprise me to find them dinging you for their own mistake.

hytedin · 10-21-2022, 06:30 PM

According to that letter the policy was never issued.

There shouldn’t be a mark since there was no policy in the first place.

It’s no different than applying to Geico and they sending a letter later saying the same thing.

There’s a separation between the selling agent and underwriting that leads to this situation quite often.

BruceK · 10-21-2022, 07:06 PM

Quote:

Originally Posted by hytedin

According to that letter the policy was never issued.

There shouldn’t be a mark since there was no policy in the first place.

It’s no different than applying to Geico and they sending a letter later saying the same thing.

There’s a separation between the selling agent and underwriting that leads to this situation quite often.

There is a November "cancellation date". They can`t cancel a Policy that doesn`t exist, so a Policy issued. Was premium paid/accepted?

The Insurer can only cancel the Policy on terms in the Policy. What are they? A right of unilateral cancellation for any capricious reason seems unlikely.

That said, not sure I`d want them as an insurer.

psneeld · 10-21-2022, 07:23 PM

According to the letter, no policy was issued because the vessel was "ineligible".

I believe there are "binder policies" that cover you till the "official" policy is issued. The binder policy gets you recognized with a file and policy number.

Often the duration is based on fixing items noted in surveys, providing information, completion of training, etc.....

From the net....

"An insurance binder is a temporary proof of homeowners insurance provided by your insurance company
You may need an insurance binder to close on a home mortgage
The binder will include information about your insurance such as policy coverage limits and covered perils
Insurance binders aren’t permanent, they typically expire in 30–60 days

Slowmo · 10-21-2022, 08:33 PM

We use Red Shield on our 1979, so far no issues on renewal. Some insurance companies are dodgy if the 110V system hasn't been upgraded for older boats.

STB · 10-21-2022, 08:57 PM

Exactly. The coverage was bound over, issued temporarily, for review by the underwriters. They bounced it.

**slowgoesit** · 10-21-2022, 09:22 PM

Quote:

Originally Posted by mvweebles

Peter at Novamar 206-350-5051 gets frequent mention on TF. I have no personal knowledge, but would be my first call when I return to US.

Good luck. Please keep us updated.

Peter

PS - I wouldn't worry about location. Chances are he works with cruisers in many places.

We are insured with Novamar through Peter as well. I highly recommend him. Give him a call! Your boat is four years newer than ours.

AquaDestiny · 10-21-2022, 09:34 PM

Had a similar problem. The company I had been using wouldn't cover another boat because it was too large. Other companies wouldn't cover because it was too old (1980). Tried "Peter" he unfortunately was no help (don't remember what his reason was). I ended up going with a company called "Ski Safe". Don't know how they will have worked out in the long run, but they were very easy to work with. I have since sold that boat so I can't tell long run opinion, however I am thinking of using them when my other boat policy is up for renewing.