Insurance Estimate

[jkirstein]

Dear Cruisers-

My wife and I have (at your encouragement) decided to sell off our worldly possessions and hit the sea. We do not yet own the boat we want, but will have it and be on the water in 18 months max.

We are working on budgets and lists right now, and I'm trying to get an estimate what insurance will cost. I have had zero luck getting a ballpark figure from ANY companies. They simply won't give me an estimate until I actually own the boat and have a survey done.

Can anyone please give me a ballpark what a reasonably high-deductible insurance will cost on a 40', $125K boat? What about just liability insurance? There won't be a bank loan to worry about.

Thanks!

[imagine2frolic]

Just like the insurance companies that will be a difficult one. I am sure people will start popping in with comparisons, so you can kind of get a feel for the cost.

[irwinsailor]

I would think you would be looking in the area of $2000. per year

[Hud3]

It depends a lot on where you will be sailing, and where and how you will store your boat during hurricane season, if that applies to where you will be.

My insurance, with a 2% deductible (4% for named storms), sailing area Caribbean, stored onshore in a steel cradle on Antigua in the summer, would cost about $2,500/yr for the hull value you mentioned.

[By Invitation]

It depends on the boat condition and your experience. We have a 1977 41' Ketch and our insurance for replacment value of 125K is around 2K a year. Of course I can't travel anywhere I want which is one of the sticky things with insurance companies - they have you by the .........

If I were to leave on extended cruising, I would drop the insurance all together but that's just my choice and I would not recomend that for everyone.

[jkirstein]

Thank you. I have an idea now. I don't mind NOT having insurance, it just sounds like at least liability is required many places these days.

jk

[Joli]

We are less then 1% agreed upon value here in the Great Lakes but have a rather short season.

The quotes I have for going offshore are ~1.75% of the agreed upon value plus passage insurance.

[minisailor]

Originally Posted by jkirstein

Thank you. I have an idea now. I don't mind NOT having insurance, it just sounds like at least liability is required many places these days.

jk

Hello
I found buying just liability insurance a very hard thing to do. All the companies I talked to refused to even quote a price unless I also bought hull insurance. If you come across a company that is willing to sell just liability please post it on the forum.
Thanks

[hellosailor]

Among other things it will depend on your sailing resume, whether you have every owned a similar boat before, or havelogged hours on it. Or have taken a boating safety course or other formal training. And the age of the boat. And the survey. And the sailings water that you are asking coverage for.

All of that before deductibles and limits are mentioned.

You might try calling Al Golden at IMSI, 1-800-541-4647. Catch them when they are not very busy and he'll gladly explain some of the variations--including the ones in poilicies that you'd never think to ask about--and he might even give you some ballpark figures.

Mind you, between this year and next year those numbers could change wildly, if there is a lot of storm damage this coming season.

I suspect that a lot of companies here "I only need liability" and to them it sounds like "I have no concern about my own losses but someone said I have to get this stuff" which sounds like a much greater risk than "I've got this really valuable boat that I'd like to insure and protect and take great care of...."

Al and IMSI are not the cheapest--but they are top-line pros and old-fashioned gentlemen. And often very competitive.

[minisailor]

Al and IMSI are not the cheapest--but they are top-line pros and old-fashioned gentlemen. And often very competitive.[/quote]

Thanks for the reply. I have talked to Al's people at IMSI and they have no interest in quoting on liability only saying there is not enough premium to make it worth their while.

[johneri1]

Shop around. I insured with my broker just to have it at first: over $900 per year for a decent policy. Shopped specialty companies some were lower some were not. Finally bought a policy from a local broker (where the boat is moored) for less than half, including a towing benefit and lower deductables. It really varies. And, bless you for insuring, you're the boat I want next to mine!

[hellosailor]

Do you have home or auto insurance? Maybe an umbrella liability policy would take care of that for you.

[minisailor]

Originally Posted by hellosailor

Do you have home or auto insurance? Maybe an umbrella liability policy would take care of that for you.

Hellosailor
Yes I have home owners insurance, auto insurance for 5 cars, liability through a company that I still own and a large umbrella policy on top of it all. The insurance company will most likely pay in case of injury to others but they like to have items like boat, car and house covered separately. I race a small car with the SCCA, the car is not street legal and cannot be insured in the normal way. When at the race track it is covered by the SCCA's blanket policy and when not at the track my liability policies as above cover me, so I don't see why it would not cover the boat. I guess I will just have to beat up on my insurance broker to do a little research for me.

[gettinthere]

I doubt that policy would cover the boat properly...you need to be covered for things like an oil spill, destroying marine environment. Not typical to a land based liability policy.

[TabbyCat]

IMIS will indeed offer liability only policies (as a general rule). I would encourage you to contact Al directly if an agent who works there has told you they will not do so, or send us a PM.