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Old 15-03-2013, 13:33   #1
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Catch 22 of insurance coverage

I can hardly believe what I"m hearing from a few insurance companies. I have my boat and trailer covered by All State and my truck covered by Travelers. Both companies tell me that while towing the empty trailer I am covered for liability by Travelers. However, with the boat on the trailer Travelers will no longer cover me and say that liability is then covered by my boat policy. All State says that they don't cover liability for damage caused by the trailer. I called Boat US and was told their boat liability insurance only covers damage caused by your boat while it is in the water and unless you are actually operating it on land while the damage occurred it wouldn't be covered. In other words, you may think that you have all kinds of insurance while towing your boat but if the trailer gets loose or the boat gets loose and causes damage you are in for a very unpleasant surprise.
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Old 15-03-2013, 13:35   #2
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Re: Catch 22 of insurance coverage

Doesn't surprise me. It was one industry who has the ability to constantly get laws passed in their favor. The whole thing is a scam if you ask me.
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Old 15-03-2013, 14:24   #3
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Re: Catch 22 of insurance coverage

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Doesn't surprise me. It was one industry who has the ability to constantly get laws passed in their favor. The whole thing is a scam if you ask me.
It makes sense when you think about it. Insurance companies give millions in donations to politicians, asking them to pass certain laws, giving them way more in returns than what they had to pay to get the law passed. No taxpayers are showing up, offeing an equal amount for them not to pass it.

Govenment and laws for sale, and insurance companies buy a lot of both.
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Old 15-03-2013, 15:07   #4
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Re: Catch 22 of insurance coverage

You might want to address this when renewing the policy, and negotiate then since you will have a bit more leverage.

My boat (and trailer) are covered by Travelers via a broker in Canada. I have negotiated the coverage (they like to call it endorsement) not only for the trailer but also for when the boat was towed from US to Canada by a third party hauler (out of country coverage).

You just need to get informed about your policy, and add any missing coverage (endorsements) ... most likely for a fee. You can add it anytime, or at the renewal. If it is not spelled out in your policy it is not covered.

Hope this helps ...
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Old 15-03-2013, 15:15   #5
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Re: Catch 22 of insurance coverage

One insurance quirk I learned of is that my homeowners insurance provides liability coverage to any boat I own with less than a 25HP motor. I don't have my boat covered for loss, but since it has only a 9.8HP outboard, we're all set in the liability department. . . .

I hadn't heard about auto insurance perhaps not covering trailering, so I'm going to ask. Thanks for bringing this up.
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Old 15-03-2013, 15:19   #6
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Re: Catch 22 of insurance coverage

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One insurance quirk I learned of is that my homeowners insurance provides liability coverage to any boat I own with less than a 25HP motor. I don't have my boat covered for loss, but since it has only a 9.8HP outboard, we're all set in the liability department. . . .
There is often a $$$ limit attached to this boat endorsement in homeowner policy. Check if there is the "boat" limit and/or what is the overall max amount covered if your boat, car, and home goes up in flames.
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Old 15-03-2013, 22:03   #7
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Re: Catch 22 of insurance coverage

When I was a cop... I found that many people got caught in this trap after they had an accident with a cargo trailer. The insurance company would cover the trailer, but not the load.

It is always good to check with your insurance company about what limits they place on you policy, like boat trailers.
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Old 17-03-2013, 11:24   #8

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Re: Catch 22 of insurance coverage

Sounds like time to see if either insurer will cover All THREE pieces and shop based on the combined price, not the pieces. You ask each one "What do I need to do to be completely covered" and if only one has an answer--that's who you go with.

It may also pay to call you state insurance commission, explain that you've been made aware of an apparent discrepancy or coverage gap, and find out what the state laws have to say about covering it. Sometimes, the insurance companies are simply lying.
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Old 18-03-2013, 11:48   #9
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Re: Catch 22 of insurance coverage

I'm afraid that you're getting bad information:
Liability coverage for a boat trailer is NEVER covered on a boat policy. It is ALWAYS covered on an auto policy as long as the trailer is listed as a vehicle. There should be no cost for doing that.

In addition, personal property is NEVER covered on an auto policy. It needs to be covered by a homeowners, condo, tenants or liveaboard, policy.
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Old 18-03-2013, 12:00   #10

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Re: Catch 22 of insurance coverage

And for those who've never heard of him, Al only has, what, about a 30-year long sterling track record as a marine insurance professional?

Nice to see you here, Al.
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