Insurance on my Cheap boat

[64osby]

I have read here that a lot of people do not insure their low cost boats.

I just bought a 1973 Starcraft Mariner with a 1985 V90 Johnson, a 1980 7.5 Johnson kicker and a Shoreland'r roller trailer.

When I was driving up to our vacation spot I decided to call my insurance agent and check out insurance. While I was getting gas I gave him all the information, Years, Models and estimated values.

I bought the boat for $2,100, Each item is individually listed, total insured value of $3,500, with a $50.00 dollar deductible. My cost per year to insure the boat is $16.90, Yes this is not a typo $16.90. This is written on my home owners insurance, Auto Owners in Michigan.

My boat is trailered and sits at my house most of the time. My main concern is that a tree falls on my boat, it happened to one of my cars.

For a very small amount it give me a pretty good feeling to know that if something bad does happen I will be able to get a replacement boat of equal or better value.

I will still look into Liability insurance.

Mods, I hope I posted this in the right forum, if not please feel free to move it.

 

[dingbat]

Re: Insurance on my Cheap boat

As with anything, the devil is in the details. Is it an actual cash value or an agreed value policy?

 

[64osby]

Re: Insurance on my Cheap boat

It is an agreed or stated value, I stated the value of each of the items, Boat, Trailer and motors and they wrote the policy with those values after underwriting approval.

 

[H20Rat]

Re: Insurance on my Cheap boat

I don't carry property coverage on any 'toy'. (boats, jetski, snowmobile...) Loses are rare, and at least for the ones I have, the property coverage isn't anywhere close to that cheap. (my boat was $250 or so a year, with a $250 ded)

But... Liability coverage is FAR more important. At least in my opinion, you have it mixed up. Go for liability first, and then think about property coverage.

 

[TBGixxer]

Re: Insurance on my Cheap boat

Sounds like a great deal! Agreed value is the way to go so that the value doesn't diminish.

 

[BRICH1260]

Re: Insurance on my Cheap boat

For a boat of that value, Liability coverage would be the most important coverage for you to carry. What will you do if you damage someone else`s property with your boat or injure someone on the water. You could find yourself in a lawsuit that could bankrupt you. Liability insurance is a must.

 

[lncoop]

Re: Insurance on my Cheap boat

I agree. In my neck of the woods liability coverage is required if your rig has anything bigger than a fifty horse.

 

[64osby]

Re: Insurance on my Cheap boat

I understand the liability statements. I did say I will look into that in my first post.

My point is that for the cost of 5 gallons of gas, which I will burn on most outings, I have coverage that will enable me to easily replace the boat, trailer or motors should something happen.

 

[Scorpion210]

Re: Insurance on my Cheap boat

I have a similar premium for my 1984 Chris Craft Scorpion. It was $15.00 per year. However the coverage that was added to my home insurance only covered me for liability. My agent asked what the value of the boat was and whether I was prepared to lose the cost of the boat should something happen to it. In my case, I was happy to take the liability only option

 

[Home Cookin']

Re: Insurance on my Cheap boat

liability insurance is not something to look into. It is something to have before you use the boat, like the plug.
If you can add the boat to your homeowners, you might already have liability coverage. EVERY INSURANCE POLICY IS DIFFERENT. if you hear what someone else has, ignore it.

 

[ufm82]

Re: Insurance on my Cheap boat

When I added my boat to my umbrella as my insurance dude calls it, my rate went up $6 a month for a stated value. (I had just purchased it and had the receipts from the dealer.) Good to know that it can get destroyed at any time and apart from the heartache of losing my boat I'm not out the money. Cheap insurance as far as I am concerned.

 

[jayhanig]

Re: Insurance on my Cheap boat

I don't carry property coverage on any 'toy'. (boats, jetski, snowmobile...) Loses are rare, and at least for the ones I have, the property coverage isn't anywhere close to that cheap. (my boat was $250 or so a year, with a $250 ded)

But... Liability coverage is FAR more important. At least in my opinion, you have it mixed up. Go for liability first, and then think about property coverage.

I disagree about not having property insurance: having agreed value is great peace of mind. However, I strongly agree about having good liability insurance. What happens if you accidentally run into a megabuck boat and damage it? It's easy enough to do around a ramp or dock.

 

[H20Rat]

Re: Insurance on my Cheap boat

I disagree about not having property insurance: having agreed value is great peace of mind.

None of my toys are expensive enough that I'd be too upset if one were destroyed, nor do I owe anything on them. Yeah, I would not be happy, but its not the end of the world either. I more or less self-insure in that regard. Of course, it also depends on where you live. If I was in an area where there was more theft, I'd probably consider it, or if I had an outdrive hanging down. (most of my boating is on a river that is relatively shallow, lots of lower units donated to make fishing habitat.)

So far in my 15 years of owning my own boat, I have yet to have anything I would have filed a claim on. Had I been paying $20/month for property insurance, I'd be out $3600. (more than some of the boats I've owned)

 

[oldjeep]

Re: Insurance on my Cheap boat

I don't carry property coverage on any 'toy'. (boats, jetski, snowmobile...) Loses are rare, and at least for the ones I have, the property coverage isn't anywhere close to that cheap. (my boat was $250 or so a year, with a $250 ded)

But... Liability coverage is FAR more important. At least in my opinion, you have it mixed up. Go for liability first, and then think about property coverage.

I agree, liability is the more important piece. I carry loss on the boat, because its worth more than I care to lose - but don't carry anything but liability on the snowmobiles, jetski and my jeep - even though its pretty cheap. My boat insurance is only $169/yr for 300K liability and 20K of agreed value coverage on the boat. It all comes down to a personal calculation on what you are willing to risk loosing. Kind of like buying the extended service contracts on electronics (I never buy one and then just replace the one thing that breaks).

 

[lncoop]

Re: Insurance on my Cheap boat

When I added my boat to my umbrella as my insurance dude calls it, my rate went up $6 a month for a stated value. (I had just purchased it and had the receipts from the dealer.) Good to know that it can get destroyed at any time and apart from the heartache of losing my boat I'm not out the money. Cheap insurance as far as I am concerned.

As I understand it an umbrella policy is intended to cover liabilities that exceed your existing coverage in a given situation. For example, if a skier drowns behind your boat and her parents sue you your umbrella coverage will kick in if your liability coverage is maxed out but they want additional compensation. Don't think it will compensate you for the loss of your boat. If I'm wrong someone please straighten me out.

 

[BRICH1260]

Re: Insurance on my Cheap boat

As I understand it an umbrella policy is intended to cover liabilities that exceed your existing coverage in a given situation. For example, if a skier drowns behind your boat and her parents sue you your umbrella coverage will kick in if your liability coverage is maxed out but they want additional compensation. Don't think it will compensate you for the loss of your boat. If I'm wrong someone please straighten me out.

You are correct.

 

[GrandDad]

Re: Insurance on my Cheap boat

I have to agree about liability insurance to cover damage to someone else's boat. Early in my boating career, I bumped another boat while docking. Some fierce winds came up just as I was backing into the dock. Oops. $1500 damage to a 37-foot cruiser, far more than the small amount I was paying in premiums.

Just like driving a car, accidents can happen.

 

[oldjeep]

Re: Insurance on my Cheap boat

I have to agree about liability insurance to cover damage to someone else's boat. Early in my boating career, I bumped another boat while docking. Some fierce winds came up just as I was backing into the dock. Oops. $1500 damage to a 37-foot cruiser, far more than the small amount I was paying in premiums.

Just like driving a car, accidents can happen.

Damage to someones boat is the cheap part, the big reason to carry liability to cover damaging people.

 

[lncoop]

Re: Insurance on my Cheap boat

Damage to someones boat is the cheap part, the big reason to carry liability to cover damaging people.

Yep. And, since damage to people can get reeeeeeally expensive depending on the damage and/or the person umbrella coverage is definitely something worth considering.

 

[64osby]

Re: Insurance on my Cheap boat

None of my toys are expensive enough that I'd be too upset if one were destroyed, nor do I owe anything on them. Yeah, I would not be happy, but its not the end of the world either. I more or less self-insure in that regard. Of course, it also depends on where you live. If I was in an area where there was more theft, I'd probably consider it, or if I had an outdrive hanging down. (most of my boating is on a river that is relatively shallow, lots of lower units donated to make fishing habitat.)

So far in my 15 years of owning my own boat, I have yet to have anything I would have filed a claim on. Had I been paying $20/month for property insurance, I'd be out $3600. (more than some of the boats I've owned)

I had stated $16.90/ YEAR not month for $3,500.00 value property insurance, This also includes up to $500.00 for misc items in the boat. It also covers reasonable recovery costs if the boat were to happen to sink.

For me 15 years x $16.90 = $253.50.

As for Liability that everybody is mentioning, I have a personal liability policy through my small business that will cover boating events.