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Old 01-08-2012, 18:48   #1
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Insurance

Hello,

I have lots to learn about sailing. The cost is a concern for everyone, and from what I have read, 2 grand a month seems reasonable.I think most of us know the difference between steak and hamburger, also if you want to drink, more money. Once again we understand the cost of a six pack. I am interested in the big ticket items. I intend to purchase a catamaran, the safety cannot be beat. I would like some knowledge of the insurance, before contacting an agent. 300k@3.3%=9900/12=825 Two grand does not look good now. Tell me these figures are wrong. If I borrow 150k can I insure for just that amount? 412 is a whole lot better than 825.Yes I realize the risk, but would rather risk money as opposed to lives. I do have some time on working boats, long trips, so I know I will be at home on the water. Thanks in advance
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Old 02-08-2012, 05:11   #2
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Re: Insurance

The mortgage company will be listed as a lein holder on the insurance and will get there money first, so the insurance has to cover the amount of the mortgage to satisfy them.

Instead of fishing here I would suggest you start getting free quotes from Marine Insurance Companies and see what they come up with...

Last winter, I was moving from Mexico to Central Amercia and had to get a new insurance provider.

I received five quotes, which ranged from $2350 per year to $7000 per year... All with the similar coverages, but different hurricane zone conditions.

With that said, you might find out that you can still afford to insure the boat at actual or an agreed upon value instead of mortgage value.
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Old 02-08-2012, 05:33   #3
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Re: Insurance

In big round numbers insurance for liability and hull loss runs about 1% of hull value per year. More, maybe much more, if you are going to be in the hurricane belt during the season. Yes you can just insure the hull for the mortgage balance. But if the boat is a total loss then you will stand the loss for the balance.

FWIW excluding big ticket items- boat insurance, health insurance, haulouts, boat payments, I could cruise comfortably single handed on $1,000 per month.

David
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Old 02-08-2012, 06:50   #4
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Re: Insurance

i can only tell you what worked for us
we bought a new 40' boat and it was our 1st boat ever - getting insurance was a bit of a hassle -- we also had it fully mortaged as i was working at the time and used the boat as a 2nd home for tax purposes - our home port is miami
we got lucky and found bill hodgens of yachtinsure that found us insurance - he worked with us and as our cruising plans changed he changed our coverage to meet our needs - for example when i told him i would be out of fla for hurricane season he immediately found us a policy that was 1/2 the price of the old one if we stayed outside the hurricane zone -
when we wanted to sail the east coast of central america he found us a poliy that would let us do that and again we had to be out of the hurricane zone between specific dates - and who cared as we spent it in the san blas islands and cartagena -
so it depends on where you are and what you are going to do - we currently are in trinidad to wait out hurricane season

good luck
and just our opinion
chuck patty and svsoulmates
in trinidad for hurricane season
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Old 02-08-2012, 06:54   #5
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Re: Insurance

OHHH - forgot - we spend anywhere from 1800 to 2300 depending on what upgrades we make to the boat - and that includes insurance that has varied between 1800 a month to 3500 a month - the insurance really depends on where you are in relation to the hurricane zone -- ours in a bit high right now as we are potentially planning a 2 person atlantic crossing

just our opinion
chuck patty and svsoulmates
in trinidad for hurricane season
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Old 15-08-2012, 13:56   #6
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Re: Insurance

Aloha and welcome aboard!
Good to have you here and doing some research. I'm not certain I agree with you on this, "I intend to purchase a catamaran, the safety cannot be beat." but I'm certain an insurer will be able to tell you from their point of view about which boats have more claims.
kind regards,
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Old 15-08-2012, 15:11   #7
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Re: Insurance

I'd like to share an insurance claims experience which will hopefully provide an additional thing for others to consider. This would make more sense for inland fresh water sailors living in colder climates.

My previous boat was an Ericson 27 which sank right in it's slip after/during a very cold winter storm. When acquiring insurance, I based the value of my boat which I purchased cash, at a price similar to what I paid for.

What I did not realize was, the cost of removing the boat out of the water was considered by the insurance company as part of the total coverage. Well, trying to haul a boat out of the water in - 0 Farenheit with a bunch of guys and crane and boom long enough to lift her out cost me more than half of what i paid for the boat. The cost to repair the boat was going to cost even more. So, it was also declared a total loss.

I thought I had adequate coverage, but I wound up having to eat the entire cost for the haul out and ended with a net loss. It was a bad situation but could also have been worse.

Some of the positive things though:
1. I was fortunate enough that my slip was close enough where a crane was able to reach it and lift her out.

2. The insurance company had no desire to sell or dispose the boat, so I still retained ownership (title). I developed a good relationship with the person who moved the boat for me when I originally purchased it, also repairs boats for a living, so I offered the boat to him for free in exchange for moving my replacement boat a Com-pac 25 from Charleston, SC to Clinton Lake, IL. He has since restored the boat and it looks even better than it was when I had her. He even got the original inboard running again!

3. I was also fortunate that I had a boat trailer (not the norm for most boats this size) which reduced the cost and complexity of where the crane could place the boat as soon as it hauled her out.

What should I have done differently? I should have added some additional $$$ to what I estimated the boat was worth, and make sure my insurance coverage included other costs like this one.

According the most experienced boat mechanic at the marina, what a lot of other people also do not know (at least for Illinois): when a boat with a fuel tank of more than 50 gallons (I think) sinks, the Dept of Conservation issues the owner a ticket and is charged a penalty per hour while the boat remains even partially submerged. I could only imagine how much those fines would have cost me.

Why the boat sank is separate story. As I mentioned earlier, the boat was fully restored. There were no holes on the hull anywhere. We could only surmise that the water got into the boat through a bad cockpit drain design for the E-27s which don't get the water to exit easily out, but passes though a hose below the cockpit which froze and cracked when the water turned to ice. He has of course rectified that problem.

One last confession: I even work for the same insurance company (though on the technology/IT side of the organization). Oh the irony!
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Old 15-08-2012, 16:36   #8
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Re: Insurance

Quote:
Originally Posted by SkiprJohn View Post
.... I'm not certain I agree with you on this, "I intend to purchase a catamaran, the safety cannot be beat."
First off, I've owned and insured, and currently own, both cats and monos (and used to race tris). And, have cruised on both. So, I have no emotional bias regarding the number of hulls.

Per review of NTSB data by a CF member, loss history is basically the same for cats and monos. No significant statistical difference in safety record based upon number of hulls.

Because there is no significant loss history difference, there is no difference in insurance costs per dollar of insured value based upon whether cat or mono. Insurance costs (per insured dollar value) are primarily based upon the details of your coverage (venue, navigation range, hurricane plan, experience, etc...). I've seen a number of insurance applications which don't even ask how many hulls, because their underwriters know it is irrelevant. Regardless of how many hulls your boat has, your insurance costs will probably run between 1% and 2% of insured value per year.

See SSCA Forum • View topic - Trimaran capsizes off New Zealand! Multi-hull or Mono-hull?.

And Blue Water Experience or Info for Cats ?

And search NTSB on the forums.
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Old 18-08-2012, 13:22   #9
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Re: Insurance

Ok I'll throw this out here but don't have much hope. I am currently in southern Mexico getting ready to head to Central America in Oct, then on to Equador. I sail a "CLassic Plastic" 1964 Cascade 29 highly modified for open ocean vessel. As such full comp insurance is not an option and not wanted as I do and have done all work myself. In the event of a collision (most likely in the marina) the other boat would likely come out the loser. All I want and need is liability insurance. I bought liability insurance in the states but would not cover Mexico. I bought liability in Mexico but would not cover south of Sea of Cortez! So now I have two paid for policies but no coverage. Add to that I have asked for quotes from several companies for Central America, Equador, Galopagos, Marquesas, Hawaii, Seattle for just liability no go. Some offer liabiliy with full comp but require a survery. I don't want to pay for a survey nor do i want full comp. Boats a head of me say marina's there don not require prof of insurance as do Mexico and the states. But I would really like to have liability. There ya go any ideas, such as specific names that I can get a phone number or e-mail address for.
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Old 18-08-2012, 13:25   #10
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Re: Insurance

P.S. THANKS
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