Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 15-05-2015, 09:25   #1
Registered User

Join Date: Mar 2015
Posts: 7
Charter deposit insurance

Hello - we are looking to charter a cat for 2 weeks in Martinique. Deposit on the boat is 4000 and the charter company do not offer a daily waiver fee as an option, they have suggested I look myself if interested. So I got a quote for the 2 weeks - the quote itself is reasonable (10 a day or so) only that the insurance itself has an excess of 500, so it doesn't cover the first 500 of any claim - it doesn't sound like a great deal to me, is this normal?

I would still have to leave the 4k deposit to the chartering company, even if I do get the insurance.

Any info / response is much appreciated!!
__________________

__________________
mrshyt is offline   Reply With Quote
Old 15-05-2015, 09:35   #2
Senior Cruiser
 
skipmac's Avatar

Cruisers Forum Supporter

Join Date: Oct 2007
Location: 29 49.16 N 82 25.82 W
Boat: Pearson 422
Posts: 12,374
Re: Charter deposit insurance

Have only chartered a few times and only once in the last ten years so cannot say what is normal.

Regarding the question of is it worth it, I think has to be your decision.

The math is easy. You risk losing 4000 with no insurance vs losing 640 from the deductible and what you pay for the insurance. But if everything goes as planned you spent 140 extra for nothing but peace of mind.

I would ask what are the odds you will cancel the trip for some reason and decide on that basis.
__________________

__________________
The water is always bluer on the other side of the ocean.
skipmac is offline   Reply With Quote
Old 15-05-2015, 10:22   #3
Registered User

Join Date: Mar 2015
Posts: 7
Re: Charter deposit insurance

Thanks skipmac. I was just a bit surprised with the 500 excess - I have read in other threads that people always go with the deposit insurance so that they can walk away from the boat in the end without worrying about anything - in this case (worst case scenario) we would still have to fork out up to 500.

But as you say, better 500 than 4000...

If anyone else has any thoughts, I would appreciate it!

Thanks
__________________
mrshyt is offline   Reply With Quote
Old 15-05-2015, 10:45   #4
Senior Cruiser
 
skipmac's Avatar

Cruisers Forum Supporter

Join Date: Oct 2007
Location: 29 49.16 N 82 25.82 W
Boat: Pearson 422
Posts: 12,374
Re: Charter deposit insurance

Just to be clear, you refer to excess. I assume this is what we call in the states the deductible. For example, you insure a car for $10,000 but if it is totally wrecked or stolen the amount you are paid is minus the deductible amount?

Can't say for charter insurance but for almost all types of insurance I know of, a deductible on the payment is standard. That accomplishes a couple of things for the insurance company.

First it reduces the amount they have to pay on a claim so reduces their costs a little.

The biggest issue is that a deductible usually makes the customer more careful and motivated to work harder to not use the insurance.

If you could get paid 100% of the value of what you insure then you have zero risk in the business. In that case it makes it much easier for you to cancel the charter or if car insurance, perhaps be less careful about locking the doors or parking in a safe area to reduce risk of theft.

All this reduces the costs to the insurance company and reduces their charge to you. I know with my car insurance the lower I make the deductible the cost goes up a lot.
__________________
The water is always bluer on the other side of the ocean.
skipmac is offline   Reply With Quote
Old 15-05-2015, 11:17   #5
Registered User

Join Date: Aug 2013
Location: Miami Beach
Boat: Catalina C34
Posts: 128
Re: Charter deposit insurance

Typically a bareboat charter includes a damage deposit. I assume this is what the 4000 euros is. If so, this is actually the deductible on the charter company's insurance. If the boat is damaged, the first 4000 euros of repair cost comes out of your deposit. The rest is covered by the company's policy up to the limit of the policy. This isn't trip cancellation insurance. You can buy that separately. I'm not sure what you mean by a "daily waiver."
__________________
jkishel is offline   Reply With Quote
Old 15-05-2015, 12:46   #6
Registered User

Join Date: Jul 2012
Location: somewhere in Mexico
Boat: 99 Island Packet 380
Posts: 203
Re: Charter deposit insurance

Quote:
Originally Posted by jkishel View Post
Typically a bareboat charter includes a damage deposit. I assume this is what the 4000 euros is. If so, this is actually the deductible on the charter company's insurance. If the boat is damaged, the first 4000 euros of repair cost comes out of your deposit. The rest is covered by the company's policy up to the limit of the policy. This isn't trip cancellation insurance. You can buy that separately. I'm not sure what you mean by a "daily waiver."
.

That has been my experience too- security or damage deposit covers the deductible or at least part of it. Some companies don't allow you to get your own insurance, you must purchase theirs.
__________________
John
s/v Nakamal
azsailor12 is offline   Reply With Quote
Old 15-05-2015, 13:36   #7
Registered User

Join Date: Aug 2013
Location: Miami Beach
Boat: Catalina C34
Posts: 128
Re: Charter deposit insurance

4000 euros seems pretty high for a damage deposit though it should be more like 1000, but then this is Martinique. If somehow the OP can insure his 4000 euro exposure with 10 euro per day, 140 euro with a 500 euro deductible that could be a good deal. If, on the other hand the 4000 euro deposit is not a damage deposit but is a down payment on the charter that would be forfeit if he doesn't show up, then trip cancellation insurance could be a good idea.
__________________
jkishel is offline   Reply With Quote
Old 17-05-2015, 03:51   #8
Registered User

Join Date: Mar 2015
Posts: 7
Re: Charter deposit insurance

Hi All - in the end we will go with the "insurance excess repurchase" as the insurance company calls it. We had seen some other charter companies offer this insurance but the one we are renting from referred us to a 3rd party insurance company. Fingers crossed we won't need it!

Thanks all
__________________

__________________
mrshyt is offline   Reply With Quote
Reply

Tags
charter, insurance

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Damage deposit insurance for charter boat alex_sauvage Europe & Mediterranean 0 02-09-2013 13:51
Deposit Given, then Broker Says . . . dingoman General Sailing Forum 32 13-01-2011 12:39
Deposit to Make an Offer 'Valid?' sjpm Dollars & Cents 92 25-07-2009 21:33
well i might put a deposit on a boat on tues. scotty Monohull Sailboats 1 14-07-2008 21:30



Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 15:42.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.