How do you insure your boat?

[lowkee]

I called my insurance company today (Liberty Mutual) about boat insurance and they mentioned my boat is covered under my home owner's policy, even when on the water.

I've never seen anyone mention home owner's for coverage before, normally Boat US and Geiko.

So, how do you insure your boat?

If you have the option to insure under home owners, why do you insure elsewhere instead?

What do you have for a deductible?

 

[marlboro180]

Re: How do you insure your boat?

I called my insurance company today (Liberty Mutual) about boat insurance and they mentioned my boat is covered under my home owner's policy, even when on the water.

I've never seen anyone mention home owner's for coverage before, normally Boat US and Geiko.

So, how do you insure your boat?

If you have the option to insure under home owners, why do you insure elsewhere instead?

What do you have for a deductible?

Well,my cars and bike and other stuff is not covered under my household insurance, so why should my boat be? Aint like I am driving my house around...

Mine is insured under its own policy, more exposure to damage/ liability.


As for a deductible- liability only , about 250 US a year.

Forgot to mention a liability umbrella- 2,000,000 for next to zip.....

 

[Tyme2fish]

Re: How do you insure your boat?

Something sounds fishy here. I'd get another opinion from a different Liberty Mutual agent.

Something happens and you run over someone and cause serious injuries and your Homeowners will cover an accident from your boat? I don't think so, Tim.

 

[ddrieck]

Re: How do you insure your boat?

May be that your agent was referring to covering the boat while it is in your driveway, garage, or somewhere on your property. My Home owners covers the boat while its in the driveway.

Covered through Gieco while on the water....

 

[lowkee]

Re: How do you insure your boat?

I have some other changes to make anyhow, so I'll be sure to get a second (and third) opinion as to how the boat is actually covered. Maybe she thought I meant sitting at the dock on the water and not out-and-about on the water.. find out tomorrow.

 

[heyttown]

Re: How do you insure your boat?

Mine is the same way...Through Grange. Actually my first boat I own small 16' aluminum boat is covered under my home owners policy, when I bought my Sea Ray that couldnt be added with the other boat to the homeowner policy so I had to get a seperate marine policy..Fairly cheap i thought at $230 a year....

 

[dave11]

Re: How do you insure your boat?

Both of mine are covered under a regular marine policy. Your homeowners policy probably doesn't cover things like water pollution.

 

[kenmyfam]

Re: How do you insure your boat?

I do have my boat included in my house policy. It is automatically covered (with a value limitation) while on the property and I extended the policy to include when on the water as well. The car insurance covers any towed vehicle up to a value limitation as well so it seems I am covered for all eventualities. Same insurance company anyway.

 

[TilliamWe]

Re: How do you insure your boat?

I called my insurance company today (Liberty Mutual) about boat insurance and they mentioned my boat is covered under my home owner's policy, even when on the water...

Your agent should have told you that your boat is covered, up to a LIMITED amount on your homeowners policy. It's called something like "property away from the house". And it's limit is usually VERY small in relation to the cost of boats.
Also, while your liability would be covered that way (to what amount I am not sure), why would you want to risk all your assets with your boat?

You NEED a separate boat insurance policy. With really high liability limits. Then you can add an umbrella policy to your homeowner's policy if you want added protection.

Insurance has beendiscussed on here MANY times. Just do a search and you should be able to read through what the different types of policies are and why people have them.

Good luck.

 

[rainman99]

Re: How do you insure your boat?

Thanks for that info. Tilliamwe that makes sense. I have mine with Liberty Mutual also and my boat policy is with the house. Will be calling my agent today.

 

[lowkee]

Re: How do you insure your boat?

I'm not where rainman is.. I don't see where what TilliamWe is saying makes sense. Seems like a 2nd policy and an umbrella for the same coverage of a single homeowners. What am I missing? What is considered "really high" for liability limits?

I already have a multi-million dollar limit on homeowner's due to my pool. My boat will be protected with a generous replacement cost and a low $250 deductible for very little extra money and the same liability limit as my house. What would the benefit of paying for separate multi-million dollar policies be besides paying twice for the same limit? How does a separate policy protect my other assets if the limit is surpassed? Having the boat added to my already over-the-top homeowners coverage is $130/yr, where if I get a policy elsewhere I am paying a full rate (no "You are the best customer, ever!" discounts), plus having to add umbrella coverage to make up for the chinsey liability limits (another $230+).

What don't I understand?

 

[Skiuseme]

Re: How do you insure your boat?

There are many Companies that do Insure boats under a homeowners policy. there are many reasons why some peple do it ( Price will be the most common) but, there are a few factors why I don't insure my boat under my home:

1. If I have multiple claims with my boat I dont want it to cancle my homeowners policy.

2. Uninsured boaters coverage could not be purchased under my homeowners policy.

3. Sinkage is not covered under a standard H-03 policy.

These are the three main reasons why I dont have my boat on my policy.

 

[642mx]

Re: How do you insure your boat?

I've got mine included on the home owners with an "agreed to value". Which means its covered for what its worth plus the $900 sound system, $1000 prop, etc, etc...

 

[TilliamWe]

Re: How do you insure your boat?

Alright Lowkee, if you already knew the answers, why did you ask the question? It seems that Liberty has an endorsement to their homeowner's policy that covers the boat in a sort of "add-on" policy. But I assure you NOT EVERY homeowner's policy is that way. It's more like what I described, covered, but at a very limited set amount of value. So you have the greatest insurance coverage in the world, good for you. Glad you like it, glad it's affordable, have a nice day.

Ski, very good points.

 

[koko1]

Re: How do you insure your boat?

I have a $17,000 cash policy on my boat.. If anything happens to it, they give me $17,000.. None of this, we will give you the value of it now crap.... It is a little more pricey but worth it if anything ever happens.. .Also have $100,000 in accident coverage... Costs about $275 a year....

 

[Philster]

Re: How do you insure your boat?

It's marketing.

Insurance Company makes it sound like boat insurance is something that you have (some min coverage) or can just "add" to your existing homeowner's insurance. The customer looks at this like, "Oh, well if it is THAT easy, sign me up!"

They've tried selling 'separate' boat policies, but people don't tend to identify companies like Liberty Mutual with boat insurance.

 

[JimS123]

Re: How do you insure your boat?

Of course its insured under your Homeowners policy. Most "deluxe" policies cover watercraft up to a certain limit of liabilty and a certain value. They also have fine print to cover size and speed.

In my case, I'm limited to a boat with a 25 HP motor, and it can go no faster than 25 mph. Liability equal to my house liability and fire and theft value limited to $1500.

So my fishing boat is covered while the family Cuddy requires a separate policy.

I use BoatUs for the Cuddy and the jetski because they are simply the cheapest and best around. ALL the others are higher in MY state.

But that's MY company and MY state. READ YOUR policy for specific details.

 

[lowkee]

Re: How do you insure your boat?

Alright Lowkee, if you already knew the answers, why did you ask the question? It seems that Liberty has an endorsement to their homeowner's policy that covers the boat in a sort of "add-on" policy. But I assure you NOT EVERY homeowner's policy is that way. It's more like what I described, covered, but at a very limited set amount of value. So you have the greatest insurance coverage in the world, good for you. Glad you like it, glad it's affordable, have a nice day.

Ski, very good points.

Actually, I asked to find out about the 'non-standard' reasons not to get the add-on. If what Ski mentions are true for my policy, those are pretty good reasons. I'll talk to them tomorrow. The mention of water pollution is important, too.

I've never had a boat worthy of insuring before, so this is new to me. The financials I can do.. the things a newbie won't think of.. those are the tough ones.

Thanks everyone who answered. Tearing my boat apart.. easy(ish). Planning for the unforeseen and not going broke from it.. not so easy.

 

[ThreeMileBayWaker]

Re: How do you insure your boat?

Will be through Geico.

$2,000 on the trailer
$28,000 on the boat.

$245/year stored in a secured garage during the winter.

 

[Home Cookin']

Re: How do you insure your boat?

an insurance policy is a contract. Nothing anyone says about can change it. You have to read and understand your own policy, as they are not all the same, even within the same state. Agents don't always get it right and if they tell you wrong, the policy controls.

Separate in your mind property and liability coverage. They are independent concepts. When someone says "my boat isn't covered" does that mean "if it sinks" (property) or "if someone gets hurt using it" (liability)? Having property coverage, or not, or how much is a decision driven by many factors, pure risk/costs/benefits analysis. Having liability coverage is an absolute must, one of the few absolutes in boating (another being put the plug in).

Then you get into the situation of several policies, and stacking coverage, usually as it pertains to liability coverage. Some umbrella policies don't kick in unless and until you use underlying coverage. For example, I have to have $300,000 liability coverage on the boat policy to get $2 million more coverage on my umbrella. They have to connect.

Most HO policies provide liabilty coverage for events off premises, but there are exclusions, automobile liability being the most commom exclusion.

Here's what can happen with homeowner's: they cover many things, property and liability, but they don't cover "Boats." You have to look at THEIR definition of a "Boat." It may say a boat is greater than 15' AND powered by more than 50 HP. Be careful, it might say "OR". So then my 14' canoe is not a boat and my 13' whaler with a 18 is not a boat. Thus I am insured if it sinks or if I hurt someone with it. My 17' with a 70 is a boat--no coverage under HO; go get a marine policy. What about the 19' with a 48? Under the "AND" policy it's not a boat and therefore it's covered; under the OR policy it's a boat and not covered. Clear as mud.