Insurance Woes

[Zingaro69]

Hello

I am a US citizen residing in Palau. I am in the process of purchasing my first boat, a '77 Kelly Peterson 44, and having difficulty finding insurance for it. "At this time I do not have a market for you due to the navigational territory and ownership experience."

I need to hire a delivery crew to help me get my boat from New Zealand to Palau. A reputable delivery captain requires insurance on the boat.

What do you salts do for insurance while cruising? How does a first time boat owner go about obtaining insurance?

Thanks

[duncan_ellison]

Probably need to pick an experienced delivery crew and offer their CV's to the insurance company, that might calm them down enough to at least offer you coverage for the delivery trip.

Be prepared to spend $'s on a proper survey too, at this age, most insurance companies will want to see something.

Duncan
S/Y TALISA

[SuenosAzules]

You will find that this is a recurring problem outside of the United States. You are right, a good captain will not touch the vessel if it is not insured. Most simply find a captain willing to do the work without being insured, or the owner will just sail the boat without insurance. I have found many vessels in the caribbean (old and new) completely uninsured. It really depends on how confortable you feel about making the trek. I don't know about that neck of the woods, but I would bet you dollars to donuts that no American insurance company would insure a vessel that old in that area of the world. Unless you find someone willing to insure it, I would just make the trip. HOWEVER.. I am big on safety.. Be sure all you safety equipment is on board and your seacocks and bilges are working correctly!

[Zingaro69]

After reading the about the loss of Lazy Jack after just purchasing it, on her first trip (a delivery home), after a full survey, with a delivery crew. The thought of sailing my dream finally realized without insurance would convince me not to buy the boat. Plus being my first boat every other boat owner out there should be DEMANDING I carry liability.

Can anyone direct me where to get a Llyods of London policy? A google search turned up several small companies underwritten by Lloyds but I thought I could get a policy direct.

Anyone else I should be contacting? Help....

[sded]

Try IMIS IMIS Home Page . They seem as knowledgeable as anyone about brokering difficult insurance situations.

[PyotrBee]

You can also try Offshore Risk Management in the BVI (offices in Florida too). They seem to have a lot of carriers and Id say they are worth a try.

[drewke07]

We insured our boat through IMIS for the last five years with Markel. She drug anchor in Hawaii last November. We quickly raised and hauled her and there she has sat unrepaired for over five months. What good is insurance if in your time of need they won't hold up their end of the bargan.

[Pelagic]

Welcome to CF Zingaro69

I can understand your frustration, but as others have said… the reality is that your boat and destination falls under the “acceptable risk” of most underwriters and a few disreputable ones would probably charge you an outlandish premium and in case of a claim, have a handful of reasons why not to pay.

I know Palau well, not an easy place to learn to sail.

Have you considered spending a bit of time in New Zealand with some experienced sailors getting to know the boat and yourself on the water?

Perhaps once you do that and get the boat/crew ship shape that investment is probably your best insurance for the remote places you will cruise to.

[sneuman]

After a bad experience with foot-dragging on a claim (which was clearly not my fault but the other party was uninsured), I was seriously considering dropping Markel, but didn't. Then I heard nothing from them, it slipped my mind and now when I call them, they say the summarily dropped me months ago for non-payment. Unbeknownst to me, I have been uninsured for months now. I never received an invoice. Since they would require a survey to reinstate me, I will use this as the excuse I have been looking for to switch to Boat US!

[matauwhi]

G'day, Mate. Lloyd's Amlin should at least be able to give you a quote. They underwrite offshore passages here in the South Pacific. If you're in New Zealand you can contact their agent at: Opua Marine Insurance, Specialising in New Zealand Coastal & Blue Water Cover.
Cheers

[Celestialsailor]

I had a claim against Lloyds for damage to my boat when transported across the country. The trucker bent my roller furling. Their agent on the east coast ran me around for a year and then I received a notice that the claim had expired. Oh ya...I want to give Lloyds my business!

[sneuman]

Update on my insurance drama: went to Boat US, of which I have been a member for several years, and was refused coverage because of the pre-existing claim (which was clearly NOT my fault) or alternately because I requested too much coverage (rep gave me one answer, letter from underwriting agent a different reason). I sent an email asking for an appeal and got crickets in response. So, I am back with Markel, after all.

Needless to say, I am now pretty unhappy with Boat US. After 5 years of the full tow insurance package (which I've never had to use even once), maybe it's time for me to check out SeaTow.

[osirissail]

Wow, one thing is certain - things always seem to change. Years ago I left Blue Water as they were near impossible to deal with or contact. From the above posts it seems that now IMIS is tending toward that business model. I got an email from Bob Bell last year saying he was leaving IMIS for reasons unknown. I wonder where we can go to next?

[sneuman]

It just keeps getting better (as a story, at least)! After I re-up with Markel, BoatUS finally calls me back about my appeal. First, I get the old "this is our policy, we're not budging" routine, then after they realize I've been a long-time member, apparently they reconsider and send me a quote -- for THREE times more than the figure I was quoted at the Annapolis Boat Show.

Gee whiz, SeaTow is looking better and better all the time!

[sailvayu]

My experience with BoatUS is that they have no set policies as to how to conduct their business, much is left up to the agent as to how or what they will do for you. Sort of depends on the agents mood and any losses he has had lately. They are an underwriter and simply act as a go between with insurance companies. You may never know what company or their rating you are dealing with. Many folks I have talked to lately say their rates are often double what you get going through a marine agent or even a company such as Allstate. Always read the fine print and understand the exclusions!