Boat insurance - experience?

danond

Lieutenant Junior Grade
Joined
Jun 11, 2007
Messages
1,118
How many of you have boat insurance, and of those who do and have had to use it, what was your experience? I didn't even know it existed until this year. I just called and it's dirt cheap, $150/year for my craft.

Have any of you had a blown drive covered, or something major? How did it go?
 

craze1cars

Lieutenant Commander
Joined
Dec 26, 2004
Messages
1,822
Re: Boat insurance - experience?

God...I sure as heck hope we ALL have boat insurance! And I'm not talking about worrying about insuring an older inexpensive boat...that's very optional. But I'm talking about boaters liability insurance. Isn't that law almost everywhere anyway? Maybe not...but I sure wouldn't go out without it. I assure you your homeowners or auto insurance policy won't cover a boat accident (unless you pay extra for an endorsement at some companies). So if you don't have boat liability insurance, buy it TODAY! God forbid you accidentally run over a child swimming or a downed skiier in the lake that you didn't see, you will likely be sued for everything you own...and lose it all.

Mine is thru American Family Insurance. $116/year for full coverage including $100K/$300K liability, medical payments, and boat damage with $500 deductible, for a 1992 18 foot runabout. On top of that I have a $2 million umbrella policy that takes over in the case that my liability limits are exhausted (would YOU settle for a mere $100,000 if you witnessed your child being shredded to death by another person's propeller?) Most wouldn't. So the extra $2 million protects me from losing my entire financial life in the horrifying situation that I accidentally do such a thing to somebody else. The umbrella costs about another $150/year, and it puts a $2M liability coverage on all of my cars, boat, snowmobiles, motorcycle, and homeowners liability policies. As far as I'm concerned, anyone who actually has something to lose (like a home and a 401K account?) NEEDS a policy like that.

I had one claim a couple years back...a strange one. I crashed hard while waterskiing (picture a 60 mph bellyflop into the water while I was shooting over wakes on a slalom...the boat itself did nothing wrong and hit nothing. I just fell.) I broke some ribs. A friend was driving the boat at the time...no fault of his at all. I just fell badly. Initially my health insurance paid for my xrays and doctor visits, but later I got a notice from them that basically said "if you have boat insurance, please provide us with your policy number, as we'd like to ask them to reimburse us for what we paid to handle your injury." So I filed a claim and gave copies of all my doctors bills to the boat insurance company. American Family reimbursed my health insurance company 100% immediately. They even later sent me a $40 check to reimburse me after they noticed I paid two doctor visit copayments...and I didn't even ask them to! No deductible. That was a very legitimate medical payments claim that should have been paid by my boat policy all along.

My rates never changed. I was, and still am, pleased with 'em.
 

danond

Lieutenant Junior Grade
Joined
Jun 11, 2007
Messages
1,118
Re: Boat insurance - experience?

I'm getting it on Monday, no doubt. Granted, covering crazy bodily injury accidents that can happen is a big deal, I guess for whatever reason it's just something that never came up for me, and since it's not required in North Dakota (neither is a title for the boat, physical ownership is 9/10th's the law). Call me stupid and let's move on.

I'm wondering, I hear about people spending huge $ fixing their blown drive systems or they spin bearings in the engine, etc. Basically any big, mechanical failure: Does it cover that stuff, too? I asked them if it did, they said yes, though I haven't seen paperwork or read any fine print so I'm still skeptical.

It would be GREAT if it does. I'm always so damned paranoid about "improper, sudden removal" of the lower unit.
 

modernrocketry

Petty Officer 2nd Class
Joined
Jul 28, 2008
Messages
120
Re: Boat insurance - experience?

I have 2 boats insured with BoatUS:

1. 41' Roughwater Pilothouse motoryacht
Diesel powered -- Southern California Coastal waters
it runs be $1200.00 per year with 1M\500k liability
2. 14' Novurania RIB with OMC 115hp TurboJet drive
it runs $230.00 per year with 500K/250k liability

both boats have full coverage with an agreed hull value.

I contact State Farm about insuring the Novurania (they don't insure diesel boats in California) even with Multi-policy discount -- I have Car and Home with them -- they were higher than BoatUS

I have heard that blue water boats (ocean going) in hurricane areas rates are getting crazy.
 

DRIFTER_016

Petty Officer 1st Class
Joined
May 5, 2008
Messages
360
Re: Boat insurance - experience?

I have had full coverage on my 1991 Fisher SV18-GT since I bought it new in 1991.
1,000,000 Liability + loss, fire, damage etc. averages about $325/year CDN
Covers Hull, Trailer, Outboard, Trolling Motor & Electronics.
I have never had to use it but came close when a tornado came through my neighborhood in 1996 (lucky for me it changed direction when it was 400 yards away)
Had another close call at the ramp last month when some drunken loser almost ran into me while I was idling waiting for a spot on the dock. :mad:
 

5150abf

Vice Admiral
Joined
Aug 12, 2007
Messages
5,808
Re: Boat insurance - experience?

I have rider on my house insurance, doesn't cover breakage to my boat but if I should hit someone else I am covered.
 

triumphrick

Lieutenant Commander
Joined
Jun 26, 2008
Messages
1,737
Re: Boat insurance - experience?

Years ago while cruising in the shallows I snagged a crab trap that seized my lower unit and threw a rod in my old Merc 100. Allstate paid $800 for that claim without an increase in the policy. I have been with them for years and have never filed another claim.

The total cost on this older rig is $162 a year.
 

orion25

Petty Officer 1st Class
Joined
Aug 7, 2007
Messages
386
Re: Boat insurance - experience?

A regular mechanical failure and they are not going to pay. If you hit something, run aground, etc. insurance will pay. You choose to not maintain your boat and the block freezes in January or the engine overheats because the impeller died then you are on your own.
 

craze1cars

Lieutenant Commander
Joined
Dec 26, 2004
Messages
1,822
Re: Boat insurance - experience?

I'm wondering, I hear about people spending huge $ fixing their blown drive systems or they spin bearings in the engine, etc. Basically any big, mechanical failure: Does it cover that stuff, too? I asked them if it did, they said yes, though I haven't seen paperwork or read any fine print so I'm still skeptical.

It would be GREAT if it does. I'm always so damned paranoid about "improper, sudden removal" of the lower unit.


No. FYI I'm actually an insurance adjuster, and an expert in interpreting the fine print on these things for several different companies.

Boat insurance (and car insurance for that matter) will almost always specifically exclude coverage to any damage caused by mechanical/electrical failure, or freezing. Most policies also usually exclude rodent/varmint damage, like squirells making a massive nest out of your seat upholstery. And, to share you how loopholes can really screw with these policies I'll share that if a RACCOON tears up your upholstery, it IS covered. Why? Raccoons are not varmints or rodents. They're essentially carnivores. I've seen more than one insurance company deny damage from squirrel nests, and pay for damage from raccoon damage. And on more than one occasion I've been asked to inspect a boat to try to determine exactly what kind of animal caused the damage...those are really fun claims (sarcasm).

So anyway...to get back on track. If your engine siezes, or your outdrive locks up solid, or you improperly winterize and crack your block, or you uncover your boat in spring and find a squirrels nest, those will all still be your $3,000 problems, regardless of insurance you might have.

But if you hit another boat, or hit something in shallow water and tear off your lower unit, or smash a dock, or your boat gets beat to heck by a huge storm, or gets stolen, or burns, or sinks, or is vandalized by teenagers, or runs over a crab trap, or suffers pretty much any "sudden and accidental" occurrence that is not specifically excluded, then the policy pays to either fix or replace the boat (minus your deductible)...whichever is cheaper for the insurance company.

Then again, every policy is a little different. The fact that they told you "yes" makes me very suspicious as I've never seen it in my career. And I've learned over the years that insurance AGENTS are good at selling, but 90% of them are absolutely TERRIBLE at correctly interpreting the terms of the policies they sell. So I'd definitely want to see a copy of that policy in writing. If it does indeed cover major mechanical failures also, and it's still only $150 a year, then I want to buy my insurance from THAT company...please share the name if they do!
 

bhammer

Ensign
Joined
Mar 29, 2008
Messages
963
Re: Boat insurance - experience?

I have 2 boats insured with BoatUS:
I contact State Farm about insuring the Novurania (they don't insure diesel boats in California) even with Multi-policy discount -- I have Car and Home with them -- they were higher than BoatUS

I have heard that blue water boats (ocean going) in hurricane areas rates are getting crazy.

Funny, I have State farm and my rates were much lower than BoatUS offered and it is full coverage and is replacment cost and not replacment value. Essentially, if I loose the boat, I will get a check for about 22K and about 2K for the trailer. Doesn't matter if the boat is only worth 5K. Also have an umbrella policy that will help in the event of a bad accident of I get sued.
 

danond

Lieutenant Junior Grade
Joined
Jun 11, 2007
Messages
1,118
Re: Boat insurance - experience?

State Farm is who I called. I'll post an update on Monday after I get a copy of the policy.

Edit: it was Allstate, not state farm, and it appears they do have the "only if it's a racoon" style policy.
 
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