New Insurance changes recieved today...yikes

[Navicula]

just recieved an email about some changes to insurance.....

for southern coverage policys any damage directly or indirectly is excluded form coverage on our policy by any named storm going forward..

Lightning strike deductable has increased to 10 percent of your hull or machinery limit or 10 thousand dollars...

please note: we have never had a claim

[Mike OReilly]

Yikes indeed. Where is the boat located, and what coverage do you have? Your location indicates Pickering, but I infer your boat is somewhere warmer.



What insurance company? What broker? I haven't received our renewal yet, but I'm concerned...

[redneckrob]

Originally Posted by Navicula

just recieved an email about some changes to insurance.....

for southern coverage policys any damage directly or indirectly is excluded form coverage on our policy by any named storm going forward..

Lightning strike deductable has increased to 10 percent of your hull or machinery limit or 10 thousand dollars...

please note: we have never had a claim

Wow! What percent of hull value are you paying for that "privilege" if you don't mind me asking?

[Navicula]

we keep our boat on the hard in Florida and sail the bahamas.....our renewal is the end of April.....I hope to see a huge reduction since the coverage is reduced

[LittleWing77]

Originally Posted by Mike OReilly

What insurance company? What broker? I haven't received our renewal yet, but I'm concerned...

+1

So your boat is in Florida, but is it Canadian insurance? what insurance company and which broker, please?

Thank you,
LittleWing77

[Navicula]

Pacfic marine

[Mike OReilly]

Originally Posted by Navicula

we keep our boat on the hard in Florida and sail the bahamas.....our renewal is the end of April.....I hope to see a huge reduction since the coverage is reduced

Ah, so this seems like a common story these days for boats in this area. A lot of people have been reporting huge increases in premiums, and/or cuts in coverage or other increases. Seems like the industry is trying to recover some of their losses from all the hurricanes of late. Or perhaps this is the new risk assessment for the area.

Either way, I sure hope it doesn't infect my current area: Atlantic Canada.

[Talos]

You may want to check if are eligible for a discount if you have a Talos Lightning Detector aboard, sort of like a smoke detector discount for your home insurance.

[letsgetsailing3]

Originally Posted by Talos

You may want to check if are eligible for a discount if you have a Talos Lightning Detector aboard, sort of like a smoke detector discount for your home insurance.

How does that reduce the risk to the insurance company of damage from a lightning strike?

[billknny]

Just yesterday, I was having a conversation with another boat owner, and my prediction was that most named storm coverage in the "hurricane belt" was eventually going to go to the same place as private flood insurance for houses in the USA: Not available. Sounds like that has started...

Flood insurance is not available because as long as a house is on a flood plain, it is not a question of IF it will flood, but WHEN, and how often. Fundamentally different than, say... building fire insurance. Any given home can go 1000 years before having a fire, and having one fire, doesn't hugely affect your chances of having another. (Wildland fires, excluded!)

Some insurance companies are coming to the (not unreasonable) conclusion that with any boat in, say the Bahamas, it is just a matter of time before it is seriously damaged or totaled by a named storm. It presents the same kind of problem for an actuary evaluating risk as flood insurance for a building on a flood plain.

[Mike OReilly]

I wonder what influence or effect the charter fleets have in this whole actuarial equation. When I look at pictures of hurricane devastation, and see all those big, expensive catamarans piled up like cord wood, I do wonder how that impacts insurance rates for all of us.

[Navicula]

is there such thing as liabilty only insurance?....I asked but my company does not offer this......if this is the way of insurance is going (less coverage more cost), I just want to go with liability if there is a savings.....

with these rising costs of insurance it only makes sense to be a fulltime cruiser...my boat is on the hard for the past 6 months

[letsgetsailing3]

Originally Posted by Navicula

is there such thing as liabilty only insurance?....I asked but my company does not offer this......if this is the way of insurance is going (less coverage more cost), I just want to go with liability if there is a savings.....

with these rising costs of insurance it only makes sense to be a fulltime cruiser...my boat is on the hard for the past 6 months

Yes. Liability insurance is a lot cheaper.

[fourlyons]

Yes, I pay $150 a year for liability insurance on a 40' sailboat, with Progressive. You gotta be able to afford losing your boat though.

[Mike OReilly]

Originally Posted by Navicula

is there such thing as liabilty only insurance?....I asked but my company does not offer this......if this is the way of insurance is going (less coverage more cost), I just want to go with liability if there is a savings.....

with these rising costs of insurance it only makes sense to be a fulltime cruiser...my boat is on the hard for the past 6 months

Yes, but unfortunately it is often harder to get. It seems that few broker, and perhaps underwriters, are interested in selling such a product. I suspect it's because it nets them very little profit since it costs so little.

But yes, it is available, and my sense is that an increasing number of cruisers are opting for this option. This comes from the surveys I've done of cruisers, and from the commentary I see here on these forums.