Insurance Question.

[Sandpiper921]

I just sold my 1964 Cal 28 and the buyer can't find anyone to insure it. We are in the Portland OR area. He's been given reasons such as; we don't insure anything over 50 years old, under $10,000, needs an out-of-water survey, etc. Ironically, I just insured it this past May but now Progressive says they're no longer insuring boats that old. One agent told him that many companies are going to be cancelling policies. Any suggestions? Thank you.

[skipmac]

Originally Posted by Sandpiper921

I just sold my 1964 Cal 28 and the buyer can't find anyone to insure it. We are in the Portland OR area. He's been given reasons such as; we don't insure anything over 50 years old, under $10,000, needs an out-of-water survey, etc. Ironically, I just insured it this past May but now Progressive says they're no longer insuring boats that old. One agent told him that many companies are going to be cancelling policies. Any suggestions? Thank you.

On a boat that small does he need hull insurance? Plenty of companies I think would sell a liability only policy which is what he needs to get in a marina, etc.

[grantmc]

The problem of new buyers not being able to insure their new to them 'old' vessel seems a deliberate and (to me anyways) an understandable strategy of marine insurance firms. If I ran an insurance company I doubt I'd want to insure a little yacht built in 1964 either. Would you?
Even a survey of a boat that old is rarely going to find every defect, and of course fixing all the defects does nothing to change the age. The policy for a boat worth less than $10K adds to the problem that it's just not an economic deal.
As Skipmac says a 3rd party liability only policy is comparatively very cheap, covers any damage your boat might to cause to other boats/wharves etc and most marinas will be satisfied.

[Sandpiper921]

I agree with both of you completely. However, the marina does require full insurance. Hopefully, they'll reconsider if insurance becomes virtually impossible.

[SalingSue]

Originally Posted by Sandpiper921

I agree with both of you completely. However, the marina does require full insurance. Hopefully, they'll reconsider if insurance becomes virtually impossible.

You sure about that?

This makes zero logical sense, all they care about is being made whole if you/your boat causes damage to them, weather or not YOU also get made whole, I don’t see why they would care.

[GrowleyMonster]

Try BoatUS/Geico. They are actually pretty reasonable.

[Boatguy30]

I think older boats are going to be pretty un- insurable in not very distant future.

Marinas mostly care about salvage coverage which many companies don't include with liability only. Boat US does, but I'm guessing they will want a survey.

Big insurers policy terms vary widely, state to state.

[nightowle]

try a marine insurance broker like Novamar that knows where to place certain boats. The insurers pay the commission to the brokers, not the customer. There's no point wasting time going from one carrier to the next. One stop shopping!

[skipmac]

Originally Posted by Sandpiper921

I agree with both of you completely. However, the marina does require full insurance. Hopefully, they'll reconsider if insurance becomes virtually impossible.

I find this surprising. Have never encountered this before. Every time I've ever been asked the marinas were quite happy with liability only.

[S/V Illusion]

Originally Posted by Sandpiper921

I just sold my 1964 Cal 28 and the buyer can't find anyone to insure it. . He's been given reasons....., needs an out-of-water survey, etc.

If that’s the problem, isn’t the solution obvious?

Corollary - if the buyer didn’t have the survey done prior to purchase, that’s mistake #2 which would have made the first one moot.