I just saved $483 on my yacht insurance

trflgrl

trflgrl

Active Member
Jun 23, 2014
982
Middle Tennessee
Boat Info
1989 Sundancer 300
Engines
Twin 350 Merc/Alpha 1 Gen 1; Quicksilver 4.0 gen
When I first purchased in 2013, I got a quote from BoatUS that was considerably lower than other carriers yet seemed to provide the same coverage. However, none of the associates/underwriters with whom I had spoken along the way informed me a professional survey was required,* UNTIL THE DAY I PAID THE SELLER, WITH THE HAULER SCHEDULED TO TRANSPORT THE NEXT MORNING. Rather than delay the transport, I bit the bullet and went with another carrier. Fast forward to this year's annual financial review/insurance comparison and VOILA! BoatUs application and qualification process has changed, and in addition to the $483 savings, I'll get a small refund from my old carrier once I cancel.


(*Yes, yes, I know--future/pricier purchases will include a survey!)

Merry Christmas to me! :smt038
 
Just over $500, but plan to get the boater safety course under my belt finally and will knock that down by 10%. I don't have enough street cred to get "experienced boater" rates yet!!
 
Everyone has their favorite broker. Mine is NBOA. Last summer i was following my boat that was won a hauler going to the coast when I realized i hadn't added the coastal endorsement. Called the lady I work with at NBOA and she got me covered before the boat splashed. Two hour turnaround on the endorsement.
 
$500 with an agreed value of $55 for boat and trailer with Progressive. Deductible shrinks by 25% each year with no claims.

Bennett
 
I've gotten a quote from Geico and just ran their online application they were $300 a year more than I pay for Yacht insurance right now Geico is BOAT insurance they do not offer YACHT insurance, the first clue is with their liability it is a split 100,000/300,000 a yacht policy would be a single amount of liability 300,000. I've also spoke to them about yacht insurance which they didn't offer.

This was written by someone else.

First, for our purposes, a watercraft insurance policy can be broken down into 2 distinct types- a yacht policy and a boat policy. The terms "yacht" and "boat" have nothing to do with the size of the vessel, but are based on how the policy language covers you.

First terms to learn: "All Risk" vs "Named Perils"

Think of this analogy- You have 2 five gallon buckets from the big box hardware store of your choice, and a drill. Your instructions:

Bucket #1- you can only drill holes in the top 5 inches of the bucket by the handle.
Bucket #2- you can drill holes anywhere but the bottom 1/3 of the bucket.

Bucket #1 is an All Risk yacht policy- When you fill the bucket up, you will have almost a full bucket. On an all risk policy, if a claim is not in the exclusions, or if the policy language is silent on an issue, you have coverage.

Bucket #2 is a Named Perils boat policy- you fill the bucket,and water flows from the holes except for the bottom 1/3 of the bucket. On a named perils policy, you have coverage only if the peril is named in the policy language. If the policy language is silent on an issue, you have no coverage.

A boat policy is very similar to an automotive insurance policy. A yacht policy is specifically written to cover the unique circumstances that confront vessel owners.


Does your head hurt yet?


Coverages to look for-

Hull coverage- the amount the vessel is valued at including any hard additions ( navigation equipment, downriggers, upgrades, etc). Valuation can be purchase price including additions, or survey market value.

Agreed value coverage vs Actual cash value coverage- AV means that the vessel value is determined at policy inception. ACV means that the vessel value is determined at time of loss.

Example- you purchase a 10 year old boat for $200k. A year later, there is a fire and the boat is a total loss.
Agreed Value= you receive a settlement check for $200k.
Actual Cash Value = the insurance company negotiates the value of the vessel based on the NADA, BUC guide, etc (like your car policy).

A yacht policy includes agreed value coverage.
A boat policy is generally ACV coverage.


Liability (also called Protection & Indemnity)- Does 2 things:
1) protect others against the damage you can cause to them
2) protects you against the legal actions other take against you

Liability coverage should be a single amount (ie., $300k) vice a split amount ($100k/$300k). Split means the first amount is what is paid on your behalf per single event, to a max of the second number per year.

Example- there is a fire on your boat, and you are found liable. You are responsible for $225k in damages to the dock and surrounding boats.

Single= the policy pays up to the $300k policy limit on your behalf.
Split= the policy pays the first $100k-you pay the rest out of pocket.

Yacht- combined single limit.
Boat- split limit.


Pollution liability- this is to protect against environmental damages that you are responsible for.

Yacht- pollution is part of the standard policy form as a separate sublimit.
Boat- pollution may or may not be included in the general liability coverage.
 
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I have Allstate on my Waverunner. I had claim last year and they were great. However, I would never insure my boat or my house with a retail insurer. Like every transaction, you get what you pay for. I'm a public adjuster and I speak from experience.
 
Do most of you guys use a different insurance company than you use for your cars and house? I have a yacht policy w/ Amica (along with my house and cars) and also have an umbrella policy.

I'm paying about $900/yr with an agreed upon value of $159k and a 15% deductible (which seems very high)
 
SmilingMonkey said:
Do most of you guys use a different insurance company than you use for your cars and house? I have a yacht policy w/ Amica (along with my house and cars) and also have an umbrella policy.

I'm paying about $900/yr with an agreed upon value of $159k and a 15% deductible (which seems very high)
Click to expand...

I personally would only use a broker that specializes in Marine Insurance rates can very by company using 1 company isn't going to do anything but renew your policy. I use Norman Spencer they shop around at every renewal for the best policy available not just price but factors like exclusions. I've used them for 5 years even though they have written my last policy with a different company they were able to keep my $0 deductible because of no claims.

Yes 15% deductible is very high I would find a marine broker. I also carry an umbrella policy with them because they have an umbrella specialist that only does those policies.

Here are some more comments written by a Marine Broker with 30 years experience.

My infrequent posts about insurance have often ended with a plea for all to read your policy. We all need to have the proper coverage, and the worst time to find out how your policy covers you is at time of a loss. There is a company that has policy language about loss as follows:

"We will cover any sudden accidental physical damage to or loss of the insured vessel from any external cause subject to the exclusions."

That one word, "external" gives the company wide ranging latitude to deny a claim if they cannot determine the cause of loss was from outside the vessel. Overheat because of a failed belt or water circ pump? Claim can be denied because the cause is not external of the vessel.
Lose a transmission (non-impact related)? Claim can be denied because the cause of loss is not external of the vessel.
Engine failure due to a failed valve keeper or timing chain? Again, if the cause of loss cannot be determined by the company to be external of the vessel, claim can be denied.

As part of your checklist for the upcoming season, please take the time to read your policy, and talk to your agent about how you are covered. Make sure your agent has your best interest at heart, and doesn't see you as just a paycheck.
 
Bob & Sue said:
I personally would only use a broker that specializes in Marine Insurance rates can very by company using 1 company isn't going to do anything but renew your policy. I use Norman Spencer they shop around at every renewal for the best policy available not just price but factors like exclusions. I've used them for 5 years even though they have written my last policy with a different company they were able to keep my $0 deductible because of no claims.

Yes 15% deductible is very high I would find a marine broker. I also carry an umbrella policy with them because they have an umbrella specialist that only does those policies.
Click to expand...

Thanks Bob. A couple of follow up questions:

- How much do you pay for for a yacht policy and umbrella with $3M total coverage? I'm paying $900 for the yacht policy and $400 for the umbrella.

- What is your deductible for said policy?
 
SmilingMonkey said:
Thanks Bob. A couple of follow up questions:

- How much do you pay for for a yacht policy and umbrella with $3M total coverage? I'm paying $900 for the yacht policy and $400 for the umbrella.

- What is your deductible for said policy?
Click to expand...
I would also be interested to know this since your are in WA
 
kartracer said:
Does the age of boat have anything to do with premium ?
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Yes--the vessel's age factors into its value, which is one variable that drives the premium.


And....I just saved another $51 by completing the boater safety course. It cost $45 for registration/materials, so it's a wash this year, but the certification doesn't require renewal and will apply from here forward. Some insurance companies give a lesser amount (some classmates reported only 3 - 5%) or don't even acknowledge, but BoatUS discount rate is 10%.
 
almostenuff said:
Move it to FL and check your pulse...
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No kidding. My 2005 280DA has an Agreed Upon Value of $55k and full coverage runs almost $1200 a year. I'd love to see $450 - $600 per year. Sometimes it sucks to live in Florida but then again, someone has to pay for all that sunshine!
 
Bucit said:
No kidding. My 2005 280DA has an Agreed Upon Value of $55k and full coverage runs almost $1200 a year. I'd love to see $450 - $600 per year. Sometimes it sucks to live in Florida but then again, someone has to pay for all that sunshine!
Click to expand...

Your not the only one paying for your sunshine & hurricanes almost all policies went up after Sandy we all pay for it. Not just in boat insurance home & auto spread the cost out across the US or drop certain states totally.
 
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