Insurance Question

R

rh320

Member
Mar 2, 2018
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I just received a quote for a new to me 320 Sundancer. 2 questions: #1. It is an actual cash value policy. Do most people prefer an agreed value policy for boats such as mine. I always get an agreed value policy for my classic cars but never have on my smaller boats. #2. The quote was provided with a 100k liability coverage. That seems way to low if you ask me? What is an appropriate amount for liability? Should I check with my marina to see if they have a minimum liability amount for boats left in the water?
 
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My marina states a minimum of 300k. Mine is an actual cash value policy but I may switch over to an agreed value policy next year.
 
Mine is 300k, and agreed value. Don’t recall the marina, but I know they required me to provide a copy of the insurance.
 
I have agreed value. I think I have 300k and I use my umbrella to cover any marina requirements (just make sure you insure enough to cover the umbrella requirements). You may also want to check with you marina for any specific requirements.

-Kevin
 
I would prefer an agreed value policy but I purchased my boat around 30% cheaper than my insurers current estimated value so I have a lot of room for depreciation to be factored in and be able to walk away with my money back. I am mostly concerned about the liability coverage as 100k just seems way to low. I will definitely ask my marina about any insurance requirements on their end. I am with Erie Insurance and they quoted me an actual cash policy with a $500 deductible and a $100k liability coverage at $650/year. $650/year isn't bad but seems maybe a little high considering 100k of liability is nothing. My agent gave me another quote for a $500 deductible and a $250k liability coverage at $750 year and a $2k deductible and $250k liability coverage at $600/year.
 
Make sure you are getting a "yacht insurance" policy rather than a "boat insurance" policy. There are many differences between the two and you should ask your agent if he can explain the differences between the two. If he doesn't know what a yacht insurance policy is or can't explain the difference, I'd find a new agent.
 
Gofirstclass said:
Make sure you are getting a "yacht insurance" policy rather than a "boat insurance" policy. There are many differences between the two and you should ask your agent if he can explain the differences between the two. If he doesn't know what a yacht insurance policy is or can't explain the difference, I'd find a new agent.
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I saw that exact same thing mentioned on another thread as I was searching for insurance related posts. I think I might need a little educating on the difference even if my agent doesn't! I love this site for all of the education and experience that so many have to offer.
 
rh, there are many differences but one that comes to the forefront is the coverage in a yacht policy (YP) for environmental damage.

If you have a YP and have an agreed value policy of $150K (just to pick a number). If your boat sinks (and is a total loss) and there is enviro damage of $175K, the policy will pay for the enviro damage, pay to remove your boat, then pay the $150K for your boat.

In a boat policy (BP) and those same circumstances, most BP's will pay the enviro damage first, to the limits of the policy. If there is anything left, they will give you that for your boat. If there's nothing left after paying the enviro damages, well, you get nothing for your boat. Then you still have to pay to have your boat removed.
 
Gofirstclass said:
rh, there are many differences but one that comes to the forefront is the coverage in a yacht policy (YP) for environmental damage.

If you have a YP and have an agreed value policy of $150K (just to pick a number). If your boat sinks (and is a total loss) and there is enviro damage of $175K, the policy will pay for the enviro damage, pay to remove your boat, then pay the $150K for your boat.

In a boat policy (BP) and those same circumstances, most BP's will pay the enviro damage first, to the limits of the policy. If there is anything left, they will give you that for your boat. If there's nothing left after paying the enviro damages, well, you get nothing for your boat. Then you still have to pay to have your boat removed.
Click to expand...

Good point on the Yacht vs. boat. Some insurance companies offer and add on "Yacht endorsement" to an existing policy.
 
I get max liability I can. Best I could get is 1.5 million and replacement value of the boat at market values based on marine survey value. Policy was 700US for a year. 300K liability would probably not cover the cost of someone's dog if I ran over it.
 
Im thinking I may need to go elsewhere for my insurance. It definitely appears as if my agent and maybe insurer isnt up to par for insuring bigger boats. And based off quotes I got for extremely low liability coverage, I think it will be unreasonably high to get the proper coverage. I am currently with Erie. Does anyone have any recommendations?
 
rh320 said:
Im thinking I may need to go elsewhere for my insurance. It definitely appears as if my agent and maybe insurer isnt up to par for insuring bigger boats. And based off quotes I got for extremely low liability coverage, I think it will be unreasonably high to get the proper coverage. I am currently with Erie. Does anyone have any recommendations?
Click to expand...

NBOA.
 
I have a 1994 200 Overnighter O/B that I purchased last year. I was insuring my 1978 StarCraft with Hagerty (the classic car insurance people) Marine and was happy with the quote they gave me for the Sea Ray. Here is my policy details. I paid $3500 for the boat/trailer. The NADA at the time was around $6k so I currently have $4500 in agreed value. Once the boat is uncovered in spring and I replace the missing canvas and update the electronics I will bring the agreed value closer to the NADA price.


Boat Description Risk Type Length Agreed Value Serial Number


1) 1994 SEA RAY 200 Overnighter Runabout 18 $ 2,525
2) 1994 Mercury Outboard Engine $ 1,725
3) 1994 Custom Trailer Trailer $ 250

Liability Coverage Part - Limit Boat 1 Premium
B: Watercraft Liability: $300,000 Per Accident $ 55
B: Accidental Fuel Spill: $854,400 Per Accident INCL
A: Personal Effects: $100 Deductible: $2,500 Per Accident INCL
F: Uninsured Boaters: $300,000 Per Accident $ 20
A: Commercial Towing: $1,000 Per Accident $ 20
C. Longshoremen's & Harbor Workers' Comp INCL
Coverage is provided where a limit and premium are shown for the coverage or "INCL" is displayed. NA: Coverage does not apply

Coverage for Damage to Your Insured Property - Section A
A: Boat $55 5% ($126) Ded.
E: Trailer $10 ($25) Ded.
A: Outboard Motor $40 10% ($173) Ded.

Total Policy Premium: $ 200
 
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