Simple guide to Boat insurance

[puffcard]

Couple of things to add, like fuel-spill liability coverage. Heard of a sailboat self reporting a 4oz diesel fuel spill in Maryland and getting hit with a $56,000 fine. What about "Salvage" coverage and "Wreck Removal". As someone who worked in the salvage business, there are many policies that just give you a faction of the vessel's valve. This isn't enough, you need 100%. Having just gone down the AICW, this should be mandatory, There must be a 100 vessels strewn up and down the coast after Matthew.

[Nostrodamus]

Originally Posted by puffcard

Couple of things to add, like fuel-spill liability coverage. Heard of a sailboat self reporting a 4oz diesel fuel spill in Maryland and getting hit with a $56,000 fine. What about "Salvage" coverage and "Wreck Removal". As someone who worked in the salvage business, there are many policies that just give you a faction of the vessel's valve. This isn't enough, you need 100%. Having just gone down the AICW, this should be mandatory, There must be a 100 vessels strewn up and down the coast after Matthew.

Puffcard,
You are right about this. When I was doing the insurance research there were many things that came up that I could have put down but I would of ended up writing a book rather than a basic post to make people think.

One of the things was about salvage. Some policies don't cover it and although some policies do mention salvage and you may think you are covered it is really just basic salvage. If the boat sinks you may not be covered for it's recovery or for any clean up operation. That is why it is important to check your policy and if you have any doubts ask the broker exactly what it does cover. You are paying for insurance and you need to know exactly what you are getting for your money. As I said, cheap insurance is not always the best and not all insurance policies are equal.

[Mike OReilly]

Originally Posted by Nostrodamus

Mike, No problem and I agree it would be interesting. Go for it my friend.

Great.

Just getting back to this. I’ll use your piece as the foundation for the kind of data to collect Nostrodamus. The challenge is to collect meaningful numbers and detail, without getting completely bogged down in the weeds. As you note, there is huge variety and range of coverages. I’m going to focus on top-level categaries (as you did), broken down by region and insurer. … or something like that. Stay tuned .

[conachair]

Originally Posted by barnakiel

third party insurance. This one is OBLIGATORY in the EU.

In every EU country?

I've heard of a few but not every one, any links?

Not that it matters much, sooner or later you'll want to go into a marina or a boatyard for a lift out, they almost certainly will want a copy.

Ta

[Mike OReilly]

OK, here’s the data I’m suggesting we try and collect. The objective is to see what people are actually paying (in cost per insured value), based on type of coverage and location.

Because of the sensitive nature of some of the data, I’m going to use SurveyMonkey. I know this will reduce the number of responders, but I don’t see a better alternative.

Does this cover the basics? Remember, I don’t want to get too complicated. I realize there are many details not covered here, but there’s no way to include everything and still get meaningful data.

Insured value of your boat (in USD please)

Types of insurance carried

Comprehensive
(generally covers direct and indirect costs of damage to your boat. Usually includes medical and repatriation costs. Also includes 3rd party liabilities, )

• Agreed Value
• Current Market Value

Third-party liability only

Additional coverages
(some comprehensive policies include these, others do not)

• Environmental damages (fuel spills, etc.)
• Wreck removal

Location (of coverage area).

Actual Insurer (underwriter)

Broker

Annual Fee (in USD).

[Nostrodamus]

Mike, That will be interesting. I know insurance on the European side is cheaper and we get a pretty large coverage area.
As you say it is difficult to cover everything so you need to just go for the basics. I know on this side some companies will not cover you to go across Biscay in certain months for instance where as others cover you anytime. Also will they cover single handed sailing which may be something to add as there are a lot of single handed sailors. Having a home marina makes things cheaper and then you have the problem across there where some companies will and some won't insure you in the hurricane belt at certain times. I think it is difficult but just to get a basic idea it can be done.

[Nostrodamus]

Originally Posted by conachair

In every EU country?

I've heard of a few but not every one, any links?

Not that it matters much, sooner or later you'll want to go into a marina or a boatyard for a lift out, they almost certainly will want a copy.

Ta

Paddy, you are right. You don't technically need insurance in a lot of places in the EU but you will not get into a marina or boat lift without it. Big gamble not having any especially if you hit someone else.

[Mike OReilly]

Originally Posted by Nostrodamus

Mike, That will be interesting. I know insurance on the European side is cheaper and we get a pretty large coverage area.
As you say it is difficult to cover everything so you need to just go for the basics. I know on this side some companies will not cover you to go across Biscay in certain months for instance where as others cover you anytime. Also will they cover single handed sailing which may be something to add as there are a lot of single handed sailors. Having a home marina makes things cheaper and then you have the problem across there where some companies will and some won't insure you in the hurricane belt at certain times. I think it is difficult but just to get a basic idea it can be done.

Thanks. I’ll try and add these options.

[Pelagic]

Hi Mike,
thanks for the PM and your draft Survey.....
Good start but I think for this to be valuable on a global basis we could start of with basic questions without any assumptions and define the context of where the problems arise for some of us in more distant locations

Some thoughts on how to start and build context for you


Example
1 Are you insured
a Yes Hull & Third party Liability
b Yes Marina Liability only
c No I am not Insured

2 If NO why are you not insured?
a I don't want to
b Too expensive for my region
c I cannot find any company to insure me for Marina Liability only
d I was told that my boat is considered too old to be insured

3 If insured, what is your latest quote for :
1a
1b

4 What exclusions are there in your policy
a....

5 What add-ons do your recommend
a.....

[Mike OReilly]

Thanks Pelagic, I can reorder those questions and simplify the specifics to get the info and logic flowing a bit better. My objective is to get actual amounts being paid by cruisers in a given area. And hopefully to identify the good brokers/insurers in a given area. I’d like this info to be functionally useful for cruisers if possible.

Question: What is "Marina Liability only”? I’ve never heard of this one. And how does it differ from third party liability?

[Pelagic]

Great! I think this will be very helpful

[Mike OReilly]

OK, as promised, I’ve set up a simple (very short) survey via Survey Monkey on boat insurance. The data is completely anonymous (not even I can see who the respondents are). The aim is to find out what general types of insurance people have, what people are paying, and whether you are happy with your current provider/broker.

I will report the results back here so we can all benefit.

https://www.surveymonkey.com/r/C82SBJP

[Nostrodamus]

Originally Posted by Mike OReilly

OK, as promised, I’ve set up a simple (very short) survey via Survey Monkey on boat insurance. The data is completely anonymous (not even I can see who the respondents are). The aim is to find out what general types of insurance people have, what people are paying, and whether you are happy with your current provider/broker.

I will report the results back here so we can all benefit.

https://www.surveymonkey.com/r/C82SBJP

One thing.. Making a claim.. you need a box for never claimed.