Originally Posted by Wavewacker
. . . Now, what is the requirement for insurance? Marinas
require it I understand, but what about self insuring an old tub? Are policies required on blue waters, the ICW
, gulf or Great Lakes
In the USA and most of the rest of the under-developed world, insurance is a matter of your own personal choice. Basically, marine insurance comes in two flavors - comprehensive (most everything is covered) and Liability-only which only covers claims against you and your boat by other boaters/marinas/etc.
- - If you have a fancy expensive boat naturally full insurance makes a lot of sense to protect your investment. And if there is a bank loan involved on the boat, you really don't have much choice - the bank wants their investment covered.
- - If you have a paid off boat, it's old or whatever, then if you want to be able to dock
it at a lot of marinas or haul it at a lot of boatyards
you will at least need Liability-only insurance to cover any losses resulting from your boat attacking and causing damage to somebody else's boat or the marina.
- - If you avoid such places and/or find alternatives then whether you carry insurance is totally at your discretion. Outside the USA (at least in the Bahamas/Caribbean/S&C America) only the cruisers with a lot to lose if something happens to their boat usually carry full insurance.
- - But it is a definite "gamble" as you would not be able to recoup any losses due to storms, other boats colliding with you (or vice versa) who are also uninsured and many other potential financial disasters involving your boat. That's the personal discretion part . . .
- - IMHO, self insuring is a myth and virtually nobody would accept it in lieu of a real insurance carrier. To be valid, you would have to put aside in some form of "bond" account several hundreds of thousands of dollars or the amount you would claiming as your coverage. Marinas in eastern middle Florida
actually state the minimal coverage ($) of insurance needed before you can use their facilities in the $300K to $500K range. I suspect others elsewhere do likewise.