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Old 18-04-2021, 20:39   #1
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Insurance: which option?

Iím close to pulling the trigger on a ďstarterĒ boat - 30 foot coastal cruiser, 30+ years old.
The price is low enough that, if itís a total loss, Iíll cope.

As part of the planning, Iím looking at insurance and basically have three options:
Comprehensive - includes payment for a total or partial loss of the yacht and systems (pretty much for any reason)
Third Party, Fire and Theft - covers losses due to fire and theft only
Third Party only

Obviously the cost goes up as you progress through the levels, with Comprehensive being about 3 times the cost of Third Party only.

The likelihood of a total loss due to my incompetence or natural causes is very low. There is always the risk of someone else causing damage of course. Also, with an older boat, things like standing rigging are more likely to fail.

Any thoughts on the best way to go?
If thatís too broad a question, then what are the factors I should be taking into account?
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Old 23-06-2021, 06:59   #2
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Re: Insurance: which option?

Bumping.
Needing same soon.
No idea really.
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Old 23-06-2021, 07:22   #3
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Re: Insurance: which option?

If you are concerned about total loss, you might give more thought to the liability of salvaging a sunk boat and liability for the oil spill resulting from a 20 gal of diesel fuel spill, the cost of either can far exceed the capital cost of the purchase.

Insurance is expensive - until you need it when it’s a great investment.
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Old 23-06-2021, 12:44   #4
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Re: Insurance: which option?

Quote:
Originally Posted by ChrisJHC View Post
The likelihood of a total loss due to my incompetence or natural causes is very low. There is always the risk of someone else causing damage of course. Also, with an older boat, things like standing rigging are more likely to fail.

Any thoughts on the best way to go?
If thatís too broad a question, then what are the factors I should be taking into account?

Some Reasons why boats are lost
  1. Running aground
    1. Trying to navigate an inlet or other difficult area where current is problematic
    2. In uncharted areas or areas prone to shifting bottoms
    3. A moment's inattention to basic navigation
    4. Uncharted reef or shoal
    5. More complex navigational failures such as datum mismatch, tide miscalculation, bad local advice, inoperative chartplotter, or buoys that are misplaced or that have drifted off station
  2. Allision or collision
    1. With another boat and it's your fault
    2. With another boat, and it's their fault but they don't have insurance
    3. Bridge (contact with rig or hull)
    4. Uncharted wreck, rock, fish farm, or flotsam
  3. Abandoned at sea due to a confluence of bad weather, doubtful seamanship, rig failures, medical issues, and mechanical problems
  4. Breaking loose from mooring, anchor, or slip, possibly during a storm
  5. Damage during haulout or on the hard due to equipment failures or poor technique
  6. Sinking at the dock due to mistakes made and/or mechanical failures e.g. clogged scuppers, hose failures
Some of these are typically not covered by hull insurance


There are two questions to ask yourself:
  • how would you be affected financially in the event of a loss
  • how much would your enjoyment of the boat and confidence as a boat owner be reduced if you took on these risks without insurance
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Old 23-06-2021, 16:46   #5
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Re: Insurance: which option?

Thanks, Jammer,

Iíve decided to go third-party only (to cover damage to others but not me).

When I graduate to my bigger, newer boat it will almost certainly be comprehensive.
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Old 24-06-2021, 00:28   #6
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Re: Insurance: which option?

Chris what about staying in marinas and boatyards, up here comprehensive seems to be what they want here in Queensland.
S/V Illusion is right in saying that if she sinks can you afford the salvage costs? I have seen some eye watering salvage costs, that far outweighed what the boat cost originally.

Cheers
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Old 24-06-2021, 00:30   #7
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Re: Insurance: which option?

Hmmm, another thing to consider!
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