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Old 11-09-2013, 15:54   #76
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Originally Posted by jeremiason View Post

....

While cruising our insurance rate was $2600 a year for $365k coverage with a stipulation we be above 30.5N from July1 to Nov 1 on the Caribbean side.

We notified the insurance company that we were living in South Florida and the boat would be kept at our dock behind the house. As a result the policy went up to $5100 per year for the same coverage.

I was a little bit shocked, but Markel did some comparisons and couldn't find anything cheaper...
Yeah, but, I talked to the same broker you got the $2,600 rate from and learned that was a promotional rate only issued for a short period of time...bummer...I'm currently paying that for less than 1/2 the coverage.
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Old 12-09-2013, 08:06   #77
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Re: 2013 Insurance Premiums

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Ironically the second line isn't correct. Profit margins in insurance are not that great because they manage the risk through premiums. Over time insurance companies simply adjust premiums in proportion to claims. It's very nearly a cost plus type of business. The more claims the higher the premiums and thus the higher the profit. We see this in auto insurance all the time. In the US the more heavily regulated a state is the more willing insurance companies are to approve payouts. More payout means higher rates approved by the insurance commission and higher industry profits. Some profit comes from investing the money held in reserve too. But in general, the more claims paid the higher the industry profit will be over the long run.
And, if profits don't meet expectations, there is always the "starve them out" option. (Google it with "insurance"). Something we've seen a lot with home insurance policies after hurricanes, but not so much with boat policies.
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Old 12-09-2013, 09:08   #78
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Re: 2013 Insurance Premiums

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Originally Posted by belizesailor View Post
Yeah, but, I talked to the same broker you got the $2,600 rate from and learned that was a promotional rate only issued for a short period of time...bummer...I'm currently paying that for less than 1/2 the coverage.
Now that's a lot of money for the likes of me. I have a cheap boat by most standards, but it's rich for me. I currently pay around $500/a for Great Lakes usage; replacement value (~$50,000), plus liability. That's an acceptable fee. But the prospect of paying 5x or 10x that amount when we hit salt water really hurts the old wallet. That's like buying a new set of sails each and every year!

That's where I have to seriously consider how my limited resources are best spent (cost-benefit analysis). Do I hand this money over to an insurance company to mitigate a risk which, as demonstrated in this discussion, is exceedingly low. OR, do I use that money to measurably improve my boat? More than likely my answer will be somewhere in between: going with liability-only.
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Old 12-09-2013, 11:10   #79
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Re: 2013 Insurance Premiums

I'd be interested to see the difference in your cruising policy between full coverage of a 50k hull value and liability only. If you loose the boat when insured the insurance company is out 50k. If you max out the liability by having an incident with another boat or dock, then the insurance company is out 300k or 500k. So I wouldn't expect liability only to be that much cheaper.
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Old 12-09-2013, 14:25   #80
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I'd be interested to see the difference in your cruising policy between full coverage of a 50k hull value and liability only. If you loose the boat when insured the insurance company is out 50k. If you max out the liability by having an incident with another boat or dock, then the insurance company is out 300k or 500k. So I wouldn't expect liability only to be that much cheaper.
I'll let you know once we start the process. My understanding is that liability is cheap, I assume b/c the real risk is quite low.
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Old 12-09-2013, 15:23   #81
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Re: 2013 Insurance Premiums

I have been reading this thread with interest, not least because of the figures involved. For a comparison here in Oz the standard minimum third party liability required by most marinas is ten million dollars, and some are now demanding twenty million. Otherwise you can't keep your boat at the marina, and this includes boats like our last one which was a twenty foot trailer sailer.

We were unable to get comprehensive insurance on our boat because of a number of factors such as the age of the standing rigging and the age of the seacocks but could get the third party insurance ok. And I could not imagine going without third party even if we could get in the marina without it as if I clobbered somebody's gin palace we'd lose the house. Self insuring the loss of the boat is no problem, it was cheap and although I would be very sad to lose it, I would actually be better off financially with it gone, based on the logic that it would probably take years to sell if i had to sell it and in the interim I would still have to pay marina fees, club fees and insurance all of which total something like $5K per year.

Just an Australian perspective on all this.

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Old 12-09-2013, 16:27   #82
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Interesting note from down under.... While marinas here tend to want 300-500k of liability that seems very low given the actual risk in a marina; (one electrical fire could take out 3 dozen boats at 200k each...) Ouch

We carry US$ 500k Liability and P&I with a 3 million us$ umbrella. Not perfect but hopefully adequate.
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Old 12-09-2013, 18:48   #83
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Re: 2013 Insurance Premiums

Yes, you make a good point, 300-500K could disappear very quickly. There is one boat not far from me worth about $5M. Can't see exactly how I could manage to sink it, perhaps short of a gas leak blowing my boat up just as I collided with it...

Actually, I am told the bulk of the costs are in medial liabilities, so if someone gets squashed by my boat, that would probably cost more than any boat in the marina.

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Old 14-09-2013, 06:56   #84
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Pleasant surprise yesterday, insurance is up for renewal, got renewal quote, discussed offseason layup plans w broker, they requoted and dropped my annual premium by $400!

Lesson learned: be sure and discuss your layup plans with broker.
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