Boat Amigo 3

How much Insurance do you carry ???

   99 members have voted

  1. 1. How much Insurance do you carry ???

    • Full Replacement Value
      62
    • What boat is worth
      32
    • Less than value of boat
      1
    • None
      4

Please sign in or register to vote in this poll.

14 posts in this topic

Ok - I'm back - sooo - I was coming out of hibernation, renewing my boat insurance and I was curious what others do - and you might be curious also. So - have at it. :scratchchin:

Share this post


Link to post
Share on other sites

Hey Tom - where have you been???

I voted "what the boat is worth", but the actual technical is "agreed upon value", which is from what I understand, a flat dollar amount. I used the purchase price, which I'm not sure if it reduces based on some depreciation schedule or remains a flat dollar amount. Maybe one of our Chap Insurance experts can chime in on that.

33 days to go!

Share this post


Link to post
Share on other sites

From my research and on the advice of those I consider more knowledeable than myself, i carry an agreed value policy thru boatus. They call it a Yacht Policy. Much more robust environmental coverage, depreciation waiver, electronics and personal effects coverage, and they just sent an email informing me that my deductible was going down by 25% this year. We had allstate until boatus beat the pants off them at the annapolis boat show a couple yrs ago. I really like the idea of (potentially) discussing a claim with a boat specific insurer. The horsepower they bring to table in the event of a dispute is another reason i like them.

Share this post


Link to post
Share on other sites

Lots agreed value full purchase price of boat,electronics and tender with no named storm deductible. at least 500k liability through sea insure.

Bill

Lady-G Sig 310

Share this post


Link to post
Share on other sites

Hey Tom - where have you been???

I voted "what the boat is worth", but the actual technical is "agreed upon value", which is from what I understand, a flat dollar amount. I used the purchase price, which I'm not sure if it reduces based on some depreciation schedule or remains a flat dollar amount. Maybe one of our Chap Insurance experts can chime in on that.

33 days to go!

I am not a winter person - so I went into deep hibernation. Also changed jobs which was very time consuming - look forward to boating with you sometime this summer. My offer also stands - anytime - would love to give you a tour around Lake Hopatcong.

Share this post


Link to post
Share on other sites

Well being in the insurance industry; only makes sense my first post falls under this thread!

While you declare an "agreed value", keep in mind that should something tragic happen to your watercraft; it can still be subject to appraisal. So for example; the cost of repair exceeds the appraised value (normally assessed by a licensed marine surveyor) & the appraised value is LOWER than the "agreed value"; you'll be collecting the appraised value, less your policy deductible.

The agreed value is essentially a term used for underwritting purposes so the insurance company has an idea how much to charge you.

Big thing is you want to make sure you have good liability limits. Any agent of course is going to want to upsell as much as possible as it ultimately means more money for them.

emot-wookie.gif

Share this post


Link to post
Share on other sites

Well being in the insurance industry; only makes sense my first post falls under this thread!

Any agent of course is going to want to upsell as much as possible as it ultimately means more money for them.

emot-wookie.gif

While 13utchy may be in the insurance industry, I can bet he’s not an agent. While his description of the claims process is correct, his description of “Any agent of course is going to want to upsell as much as possible as it ultimately means more money for them” is TOTALLY incorrect.

The difference in premium from a $1,000,000 liability and a $2,000,000 is negligible. It may increase the cost to the insured $10 a month or so. Agents typically make about 10% commission so that would equal to around $12 more A YEAR to the agent. That’s it. With the money that most agents make per year, an extra $12 commission is nothing.

Good agents recommend liability limits based on the likelihood that someone will get sued and if he does, how much he is likely to get sued for. Meaning… what type of dollar signs will a lawyer have in his eyes when he is hired to sue you? If I’m dealing with a 19 year old, without a good job, no home, etc, I recommend lower limits than I would a 50 year old, with great income, a big nice home, and of course a 30+ foot Sig.

Point is… get the correct liability limits for your situation… and don’t automatically assume that an agent is trying to “upsell” you just to make more money. He may actually be giving you perfect advice. :beer-7687-1:

Share this post


Link to post
Share on other sites

Good point! I'm an adjuster actually; hence my purchase of a 204 as opposed to:

gregnorman03.jpg

I've only had a couple of boat claims so have limited knowledge of the polices ..... My buddy is an agent & set me up with Travelers, which he has on his boat as well. I'll take a look at the policy some evening when I'm having trouble sleeping, haha!

emot-wookie.gif

Share this post


Link to post
Share on other sites

So what is the difference between agreed value and replacement value? I have "agreed value" on mine. If you have a boat that is more than 10 years old is there a preferred method? Also, does anyone have any idea how much liability coverage is reasonable? I have no idea how much you can be sued for in the case of a catastrophic accident. What if I run my bowrider into a yacht like the one above? Other than being dead what are my options?

Share this post


Link to post
Share on other sites

I picked "Full Replacement Value" which is correct for the next few months. Let me explain how boat insurance works at most Canadian insurers.

Just 5-10yrs ago, everyone had "Full Replacement Cost". So 8yrs after you bought your boat, if it was a total loss, you got the exact same boat (or close to it) no matter what inflation did to the price. That has all but disappeared in Ontario (and probably all of Canada) as insurance companies put the screws to us.

What almost everyone has today is a hybrid policy. For the first 3yrs, you still have "Full Replacement Cost" as defined above. For years 4-12, you have "Agreed Upon Value" which is the value of the boat when you bought it. So in 10yrs if you boat doubles in cost due to inflation, you are only covered for 1/2 and you need to cough up the rest. For Years 13+, it is the estimated value of the boat with depreciation built it. so your $k boat at 15yrs old is probably only worth $k, in which case you would need to reduce your coverage in the 13th year so you aren't paying too much.

The only real difference you have in policies is that 12yr mark. Some companies use 15yrs, some use 20, some use 10 etc etc.

My insurance for a $k boat (that is almost 3yrs old) is just $ per year and that includes all taxes, with $m liability and a $ deductible.

I phoned the same company for a 244 Sunesta at $k and the insurance was $ per year incuding tax with $m liability and a 1% deductible (so $k x 1% = $ deductible). The 1% deducticle rule applies to all boat over $k. A 264 Sunesta at $k is just $ per year including tax with $m liability and a 1% deductible which is $.

Thats life in Ontario Canada. Hope that helps and informs.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now