Insurance: which option?

[ChrisJHC]

I’m close to pulling the trigger on a “starter” boat - 30 foot coastal cruiser, 30+ years old.
The price is low enough that, if it’s a total loss, I’ll cope.

As part of the planning, I’m 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 that’s too broad a question, then what are the factors I should be taking into account?

[CruiseN]

Bumping.
Needing same soon.
No idea really.

[S/V Illusion]

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.

[Jammer]

Originally Posted by ChrisJHC

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 that’s 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

[ChrisJHC]

Thanks, Jammer,

I’ve 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.

[Fore and Aft]

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

[ChrisJHC]

Hmmm, another thing to consider!

[Russian007]

Originally Posted by Fore and Aft

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

is the a separate fuel spill/salvage policy?

[belizesailor]

Originally Posted by ChrisJHC

Thanks, Jammer,

I’ve 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.

When marine insurance rates sky rocketed a few years ago, I went with liability only. If you buy a boat you can easily afford (a prudent decision anyway I think) and thus have no mortgage then you have no requirement to carry insurance on the vessel, but some marinas may want to see proof of liability coverage.

Cleanup costs for a sunk/burned vessel can be quite high and liablity coverage is relatively inexpensive. A good deal I think. By contrast insurance on the vessel itself has become more like a mortgage payment.