Insurance won't start on new boat until survey issues are fixed

[dmx]

I'm in the process of buying a boat in florida that has a decent sized list of items from the survey to address before insurance will cover the boat.

This poses a bit of a chicken-and-egg problem: how do I avoid having an uninsured boat between closing day and when the work is complete? It's an expensive enough boat that I don't want to be uninsured, and many yards require insurance as well.

I'm a newbie, so feel free to tell me if I'm missing something obvious. Thanks in advance for any advice.

[Jason Flare]

I have found that a letter to the insurance company outlining my plan to correct the issues was enough to get the boat insured before the issues were addressed.

[boatpoker]

Ask about "port insurance". Many underwriters will provide a policy restricting you to the dock until issues are resolved.

[wingssail]

Check with

Originally Posted by rockin411

..

His Yanmar won't start either.

[Knotical]

I had a few issues that needed to be fixed, insurance asked for a timeline for those items - gave them 2-3 months for smaller items and 1 yr for big ones that required a haul out, at the end of the year before renewal I gave them proof of all the repairs/maintenance.

[goboatingnow]

In my case just recently , I received “ out of commission “ cover immediately , and once the survey was submitted and the level 1 items were confirmed to be done , I received full in commission cover

Out of commission was in water , but not in use

[Snore]

Originally Posted by boatpoker

Ask about "port insurance". Many underwriters will provide a policy restricting you to the dock until issues are resolved.

Ding Ding winner!! Same holds for owners with inadequate experience to operate the vessel in their own.

Unless the defect could result in sinking at the dock. But those should be fixed before closing.

If owner will bit fix that type of defect, consider escrowing the purchase funds, having owner authorize you to fix the show-stopping defects, prove said repairs, get insurance and close.

But boat would have to be a heck-of-a-deal for that much pain!

[SailingPNW]

Provide a detailed plan of action to handle any and all items that need to be addressed to the insurance company. This should include specifics for anything critical for example which would pose a real risk should be addressed in a way that eliminates any real risk.

For example if the electrical system was severely corroded and posed a high fire risk, you could state that the boat will not be moved and will have electrical systems disconnected until the issue has been resolved. Then provide a reasonable time frame for the repairs to be completed.

Most boats have things to fix, so insurance companies will usually work with you and start your insurance early based on approval of your plan. Keep it simple and minimal, you don't need or probably want to go into details on how you will actually fix the issues.

[dadster3]

BoatUS tagged 5 items on my pre-purchase survey last year. They asked stupid questions about when the work would be done etc, how long it would take etc. 15 months later I have finally finished the work and just had the inspection that will result in the addendum to the original survey saying all the items have been addressed satisfactorily. I did all the work myself and the boat is 80 miles away so not a short hike just to get there, hence my opinion of their questions.

I offer this only as context. I have been on "harbor restriction" until a satisfactory report but still had full insurance. That should be an option for you I should think. My follow-up inspection was fairly low cost compared the original.

So do talk to your insurance company. They want your money, and you want their indulgence while items are addressed. It's a fair trade, and the worst they might say is no, which seems unlikely.

[Jack C]

I am in the same boat. My insurer Panteneaus decided to get out of the US market so had to find another insurer. Only option i could find eas Geico/boatus.
Boat is on stands, spent $700+ on an insurance survey which found leaking exhaust elbow, problem bilge pump and small deck crack near chainplate.
All do not endanger a boat out of the water. Boatus underwriters will not accept letter of compliance within 3 weeks. No coverage until fixed. I have spent hours looking for port risk or even liability insurance with no success.
Suggestions anyone?

[Smokeys Kitchen]

We have been happy with the Gowrie Group. I don’t know if they have port insurance specifically, but it’s worth a call

Rachel Sloan | Jackline Account Manager
Gowrie Group | A division of Risk Strategies
rachel.imis@gowrie.com
522 Chesapeake Ave, Annapolis, MD 21403
p: 410.364.7707 f: 410.827.3758
www.gowrie.com/jackline

[Jack C]

Thanks for the suggestion. I tried them, they were very helpful but said Geico/Boatus are the only company they could quote me and they require the boat repairs to be complete before any coverage. The insurance market is collapsing in the US for older boats.

[dmx]

Thanks everyone for your responses, especially the mention of port insurance. Sounds like I need to pick my insurance company (a few finalists) and then have this discussion directly with them about the sequence of events. I'll respond back here when I have a response from them so others can learn from my experiences.

[sail sfbay]

I have found that major marine insurance companies (Markel and Chubb) will insure your boat Prior to completing the survey repairs after you sign a compliance certification statement that the survey findings/recommendations be completed by a specific date AND that any claims associated with survey repair list will not be covered until the repairs are completed. This is what I signed on my last 2 boats and then subsequently made the repairs (generally within 1-2 months) after the boat was insured.

[sailingchiro]

port or harbor insurance is the way to go. I had the same issue.