Boat Insurance. wondering if my boat is worth insuring.

[Howard Sterndrive]

I have a 92 Bayliner. Nada value is $2800 - $3200. To me the boat is worth way more (new engine/drive etc)
but I suspect if I hit a giant log and rip the transom off, the insurance would offer me $2000 or so (assuming it works like car insurance) and then I'd have to fight to get $3K or whatever the real value is.

I currently pay $49/year for just 1 million liability on my homeowner's policy.

I put off getting a more comprehensive policy because they wanted a survey and I figured I'd just keep that ~$400 or so in my pocket.
I'll probably just keep going this route unless there's something I'm not thinking about....

My procrastination for 4 years has already saved me 4 years premiums plus the survey cost. (maybe $1200 total)... that has bought all of my gas.

I guess it's just a risk/comfort zone thing and the fact that I'm thinking at all about it... maybe I'm wondering if my luck is about to run out. I'll probably look into an agreed coverage policy at renewal time next month.

 

[MH Hawker]

Re: Boat Insurance. wondering if my boat is worth insuring.

I was like you for a lot of years when I was trailering it I didn't have insurance on mine, but now that I am keeping it on a slip I have coverage and its more about what can happen when I am away.

 

[Another retired guy]

Re: Boat Insurance. wondering if my boat is worth insuring.

My house insurance policy includes watercraft up to a value of $5000 without question - no survey required. When I added my boat to my policy the premium went up by $3 a month. ( 2 million liability as well!)

 

[r.j.dawg]

Re: Boat Insurance. wondering if my boat is worth insuring.

It not so much about what can happen to your boat, it's got more to do with liability. Say the wind catches your boat while your docking and pushes you into another boat. Or you damage a marina's dock.

 

[oldjeep]

Re: Boat Insurance. wondering if my boat is worth insuring.

Does the liability on your homeowners actually cover you if you run someone over with your boat? Most boat insurance is agreed value, so they insure the boat and trailer for whatever you both decide it is worth - within reason. Boat insurance is pretty cheap - I pay around 165 a year for 15K agreed value and 300K of liability

 

[kmarine]

Re: Boat Insurance. wondering if my boat is worth insuring.

seprate liability insurance policy is not really expensive. does your home owners rider cover marine salvage and enviormental clean up? Catostrophic claims and personal injury are the most horrific. I have seen $25000 claims for salvaging $5000 boats. Not to mention government fines.

 

[pdgs]

Re: Boat Insurance. wondering if my boat is worth insuring.

Hi, newbie here but not new to boats and why we insure them. I'm required by the terms of my loan docs to carry insurance. I also carry an additional liability policy just in case and a couple of other bumps because my boat is often for hire. I have OUPV 6 pax license so although my situation is much different the basic principals still apply

In these tough economic times it's often difficult to find ways to keep food on the table but in my honest opinion, cutting your insurance coverage is probably not the best thing to do. It is what will keep that food on the table should you have a problem.

I think you should insure your boat against loss because it is an investment and part of your personal wealth. If you loose it and can't replace it you may loose some financial leverage that you may need in the future. Most people don't think of their boats this way but you should. If times got really bad from a financial perspective, you could sell your boat to raise cash. If it's stolen and not covered you loose that option.

If you don't feel you can afford your boat insurance then realistically, you can't afford the luxury of owning a boat and should sell it. When times get better and your life returns to normal you can always buy another one.

If you're just thinking your boats value is too low to justify paying for insurance I think you might be misunderstanding what your insurance can do for you. You may want to take a second look at the available policies, their cost and how they protect you and your boat before you push aside the idea of buying insurance.

Just my thoughts on the subject and certainly not the law or the rules of the game. If you it helps you with your decision then great.

Regards

gdps

 

[jayhanig]

Re: Boat Insurance. wondering if my boat is worth insuring.

I have my 1985 Galaxy insured not so much to protect me if she sinks or gets stolen but if I manage to run her into somebody else's expensive boat or if I injure somebody while out on the water. I'm not willing to lose everything I own just to save $235 so a year. I have a $7000 agreed value policy with Progressive.

 

[Alwhite00]

Re: Boat Insurance. wondering if my boat is worth insuring.

I have BoatUS insirance and they have an agreed value option that I use - You need to submit pictures of key areas and there is a self survey that is required but it was a lot cheaper than my local provider - My last boat was a 86 sea Ray seville mid cabin that was gone completely through and with the info and pictures they had no problem hitting the 8k agreed value.

LK

 

[Howard Sterndrive]

Re: Boat Insurance. wondering if my boat is worth insuring.

My house insurance policy includes watercraft up to a value of $5000 without question - no survey required. When I added my boat to my policy the premium went up by $3 a month. ( 2 million liability as well!)

wow, good info - you have a PM - I need to find out who this is is with if you don't mind.

seprate liability insurance policy is not really expensive. does your home owners rider cover marine salvage and enviormental clean up? Catostrophic claims and personal injury are the most horrific. I have seen $25000 claims for salvaging $5000 boats. Not to mention government fines.

I'm assuming that's all under the umbrella of liability, but I wonder about the fine part - good question to ask my broker

I have BoatUS insirance and they have an agreed value option that I use - You need to submit pictures of key areas and there is a self survey that is required but it was a lot cheaper than my local provider

that sounds perfect - thx - will check them out

 

[r.j.dawg]

Re: Boat Insurance. wondering if my boat is worth insuring.

BoatUS isn't available in Canada. The closest we have is Boater Assist.

 

[TilliamWe]

Re: Boat Insurance. wondering if my boat is worth insuring.

Yep Howard as pointed out, not all boat policies are ACV ("Actual Cash Value" like car insurance). Some are or can be "agreed Value", where if the boat is destroyed you get a set amount for it. The amount you both agreed to. However, just to confuse you some more, many of theose Agreed Value policies only apply to total losses. Any repairs will still have betterment (depreciation, sort of) applied. If you truly have a "new" engine/drive, you might consider a "Yacht Policy" that does NOT apply betterment for repairs.

 

[pikefisherman]

Re: Boat Insurance. wondering if my boat is worth insuring.

I found out the hard way mine is not covered by my auto insurance when its on my truck.I'ts insured now.

 

[Home Cookin']

Re: Boat Insurance. wondering if my boat is worth insuring.

for all insurance discussions, three things:
READ your policy.
read YOUR policy.
read your POLICY.

It doesn't matter what someone else's policy does (or worse, what they think it does) except to give some guidance where to shop.

Every policy is different and the same company has different policies in different states.

Many homeowner policies limit the coverage for boats--starting with by size and HP, and for what is covered (such as a tow exclusion).

Unless you have an agreed value you will never get what an old boat is worth to you. You get the craigslist got to sell in 1 week price.

Every discussion on insurance on this forum confuses liability (including property damage you cause to another) and casualty (aka marine or fire). The first is what you may pay others if you screw up. the second is to replace your boat. They are as different as your water bill and your phone bill. Be sure you understand each aspect seperately.

 

[pdgs]

Re: Boat Insurance. wondering if my boat is worth insuring.

On the water, boating accidents, by law, should never happen. In all boating situations the person at the helm and in control of the vessel is required to do everything possible to avoid mishap. Personally, I like to hedge that bet with insurance because I know I can't always get along with mother nature and I don't have much faith in being able to figure out what an unskilled boater might do. As Bubba points out, that's only 30% of the time. Pretty good reasons right there to get insurance.