Gulf Coast Boat Insurance

[TabbyCat]

Some companies do view lieveaboards as a plus- just as Mule said- you're there to see if anything is amiss. Other companies look at it as increased risk, since the boat gets used more often, more docking, more cooking, etc.

Most marine insurance policies stop coverage once you get off the vessel. But some companies do offer a liveaboard endorsement, which gives you Personal Liability for things that happen off the boat, just like a homeowner's policy. So if you run into someone with your grocery cart at the store, with Personal Liability, you are still covered. They also cover you for a place to stay while your boat is being repaired if your boat becomes uninhabitable for a covered claim, like a fire. That coverage costs extra.

I know I gave Waterwayguy a gratuitous opportunity to bash insurance companies, but I expect if he looks at the application he signed, he will see a space for "boat usage"- that should be filled in with either pleasure, liveaboard, racing, charter, or commercial. To fill in as "pleasure use only" when you are a liveaboard would be omitting a material fact.

[TabbyCat]

If I spend the summers on my boat and the winters in a house, am I a live-aboard? If I take my boat on a once a year cruise and live ashore for the next 2 years, I am a live-aboard

Waterwayguy - No you're not a liveaboard when cruising for a month. You are a liveaboard if your boat is your primary residence. I.e. 11-12 months a year on board, with no other primary residence. A one month cruise is not a liveabaord. But if going cruising for the full 12 months of the policy period, then yes, you should let your agent know at renewal what your plans are.

I just wanted to point out the liveaboard thing, since I was getting a vibe of "don't tell them, they won't find out" advice being given out. There are other examples of things people do to try to save $$ on the premium- like the powerboat guy who says his boat goes 40mph when it really goes 55. He knows the rate is lower for the 40mph boat, and when he files the claim, it doesn't take a rocket scientist to figure out that he misrepesented the risk. The best policy is to just disclose anything relevant, and read your application carefully- it's a legal contract.

[osirissail]

Raindog - - "Both policies I got through Kevin Severance in League City. I would at least give the a call."
- - I assume the Kevin Severance is the "agent" - who is the actual insurance carrier/company?

[RainDog]

The old carrier was Progressive. The new carrier is Farmer's/Foremost.

[bstreep]

Kevin, is ABSOLUTELY worth a call. He knows his stuff. When we leave to go cruising, he will be my first call.

HOWEVER, I know many folks who had claims from Ike. As far as I've heard, no one had complaints about Nationwide.

[osirissail]

Originally Posted by RainDog

The old carrier was Progressive. The new carrier is Farmer's/Foremost.

Do they write "offshore - worldwide - ocean" coverage or only coastal US/Bahamas coverage?

[RainDog]

Progressive covers 75 miles offshore in US waters. Foremost covers "US Coastal Waters", which two brokers have told me means anywhere in the US part of the Gulf of Mexico. For sure neither covers anything outside of the US.

My impression is worldwide or ocean coverage is a very small and specialized market. If you are looking for global coverage, I would recommend (based only on a year or so of hearsay from these forums) one or all of the following:

1) If you are looking for only US and Caribbean coverage, I think it will be easier (many people do that). If you want coverage truly world-wide, that seems like a much more specialized market.
2) Create a new thread here (or search existing threads) specifically asking about the exact type of insurance you want (worldwide, Caribbean, Atlantic, etc.)
3) Post a message to the SSCA message boards specifically requesting information on worldwide, blue water, or Caribbean coverage. You should find plenty of people there with similar insurance.
4) Talk to Tabbycat on this thread. I have never done business with her (she is an insurance broker), but others have recommended her, and she is apparently out cruising, so has probably talked to lots of people and most likely is more educated on the subject than anyone else you will talk to on these boards.

[morays]

Guys, thanks for all the advice. I did get a quote from Foremost and they seem the best by far. I will do an apples and apples comparison tomorrow to make sure that the coverage really is similar before I post anything. Thanks again,

Moray

[osirissail]

Raindog put it about as concisely and precisely as is possible. There are basically two different types of boat/vessel insurance: Local for inland waters and coastal waters including some really close countries (like for the USA - Bahamas and Canada); and offshore insurance for those venturing beyond their home countries.
- - Normally if you have a house and car your homeowners/auto insurance company will cover your "recreational vehicles" which includes boats - up to a certain size(value) limit. Beyond that limit, some home/auto insurance companies have arrangements with other insurance companies to write a policy to cover your larger/more costly vessel.
- - Also there are independent "brokers" - a salesman working on commission who either handles only one insurance company or sometimes several insurance companies and will seek out for you the coverage best suited for your needs. Examples are I.M.I.S. (Tabby Cat); Blue Water Insurance; BoatUS; and many others which you will see all lined up at various boat shows.
- - Cost-wise, if you are using the boat locally (within your country's waters) home owner/auto companies can offer better deals as they spread their losses over their entire spectrum of coverages and offer the vessel insurance as enticement to keep you under their "umbrella". Specialized marine insurance companies have a significantly smaller market so their rates tend to be higher.
- - One factor of importance is that continuous coverage of your vessel is very important to easing the acceptance when it comes time to move from local coverage to world wide coverage. Never say never, but my experience is that significant gaps in being "un-covered" and "covered" make the prospective new insurance company nervous about accepting you which will be reflected in the premium.