Cost Of Decent Insurance

[capcook]

Still wrestling with wether or not to insure the boat.... but what is the current cost of Hull insurance that would also cover lighting strikes... Does 1% of Hull value sound about right ?

[Pblais]

Sounds close but look at the fine print and also don't forget liability. If you lose the boat you might be able to take the loss, but not the liability claims. A fuel spill costs a whole lot of money. Should you start on fire they cut the dock lines and send you the bill.

[Intentional Drifter]

capcook -- I recommend that you contact TabbyCat here on the forum. Susan is an agent for IMIS, a highly regarded marine insurance agency. She is also an active cruiser (I've run into her while cruising -- not literally!) and really does know the issues involved.

To respond to your questions, there are many variables involved regarding premiums and policies. It is really best to talk to someone who knows the business and companies. I found Susan to be far more knowledgeable than my long-time usual agent for home/business/life insurance.

ID

P.S. Although I'm one of Susan's clients, I don't get a referral fee or any other remuneration for making a recommendation. I'm just a happy customer.

[Martinini]

I added my boat liability insurance to my automobile policy. Here's the good part $300,000 costs me $160.00 a year! No Sh..!

[rjrendemd]

Insurance can be very expensive if 1) you are in a hurricane belt and 2) if you sail south of the tropic of Cancer. If you can afford it I recommend that you get it. If necessary get a high deductable to lower the premiums. And remember to look at the fine print on the policy to make sure you are covered wherever you plan to sail. I learned the latter advice the hard way and had a potential claim that was not covered because I had sailed out of the coverage area by 300 miles. It turned out to be a nightmare.

[osirissail]

- - There are too many variables to set an absolute number. Generally it can run from 4% to 6% of hull value per year for complete coverage. Cruising area, type of boat, age of boat, there are a lot of things that will change to cost upwards or downwards. Liability-only is in the 1% range. There are a few good companies and a few really "not good" companies. Controlling word here is "few." There are not that many insurance companies willing to underwrite cruising insurance so "shopping around for price" is not necessarily a worthwhile endeavor - - but shopping around for service, coverage, and reputation are definitely worth the effort.

[s/v Moondancer]

1% sound a little cheap, I pay 2%. BoatUS for Miami hurricane cover cost me 3.3%

I could have got it cheaper one company was based in the Ukraine had the other had an office in Algiers.

Talk to TabbyCat...she is a very reliable source of information.

[btrayfors]

As was said, depends on where you are. Also, depends on your claims history and level of experience. For some, 1% is enough to cover all insurance.

On my vessel, Boat US comprehensive insurance (agreed value plus $500K liability, $800K fuel spill liability, 10K medical per person, $500K uninsured boater, etc.) in the Chesapeake and its tributaries costs 0.89% of agreed value (includes no-claim discount).

When I venture out of the Chesapeake, I add coverage as needed. It's quite reasonable, and Boat US is acclaimed to be pretty good insurance.

I know it's at least double this for Florida.

Bill

[Talbot]

Originally Posted by Martinini

I added my boat liability insurance to my automobile policy. Here's the good part $300,000 costs me $160.00 a year! No Sh..!

That would not be enough liability insurance for some marinas in europe, and certainly not enough for salvage and clean up operations

[Vasco]

Originally Posted by Martinini

I added my boat liability insurance to my automobile policy. Here's the good part $300,000 costs me $160.00 a year! No Sh..!

Way too low. You need one or two million liability. Our club mandates at least one million and many marinas require a similar amount.

[osirissail]

That just goes to prove the old saying that boat insurance is all about "location, location, location." What is adequate/good for one part of the world is not necessarily adequate/good for a different part.

[gonesail]

one or two million? good lord should i have a full time attorney on board also?

[divelly]

We paid 3% to an outfit in USVI.
Our boat was stolen,stripped and damaged.
We filed and they handed us back our premiums.
Pirates wear many hats.

[capcook]

Thanks all... really appreciate the responses.. but not too happy with the answers... wow 3-4% ? That would be $15-$20k/yr on a $500k Cat... add PPT of another $5-6k forever... I see why those who are cruising on $20k are spending their time uninhabited islands or 3rdWC (not that this is a bad thing, just won't work with teenagers at least not for long).... I am afraid I will probably just have to settle for some Liability and perhaps a HUGE deductible on hull value...

[TabbyCat]

The question "What are you paying for insurance?" ranks right up there with "what kind of anchor do you have?" as one of my all time favorite open-ended questions!

The answer to the first question is "somewhere between 1/2 of a percent to 3.5% of hull value". Which is kind of meaningless- that's a huge range. What makes the difference?

1) Mooring location
2) Navigation area requested
3) Hull value
4) Type of boat, sometimes even boat brand
5) Your experience
6) Lay up
7) Deductible % selected

Thanks for the kind words, Orca!

Susan