Insurance for Catamaran

[Captain Bill]

I just had a new one from an insurance company. I filled out an application and everything looked good. They had full coverage available at a somewhat reasonable price (about 1.6% of hull value). They had a great navigation range, east coast of the US and Canada and the entire Bahamas. Pretty much exactly what I was looking for. After everything else had cleared they came back to me with one last question which they said was only because I owned a multihull. They asked me :


3/18/22 We have to add this question for multihull sailboat. Is the vessel intended to be lived aboard for an extended period of time while away from home port?

I told them I expected to make one or two trips per year that might last up to 3 months and that I would be aboard while traveling. They immediately declined my insurance and closed my application. I wonder how they expect sailboats to take advantage of their large navigation area if they won't actually allow you to actually sail the boat any distance. They said they don't provide coverage for cruisers. Since they apparently don't ask the question of monohull owners I guess they will actually cover monohull cruisers. Maybe I should have told them that while I'm traveling long distances I will actually spend the night in hotels.

[Basedowford]

Check out Edward Williams.

https://www.edwardwilliam.com/

[edsailing]

You may this of interest, it concerns a court action against NorthernReef
https://www.ukpandi.com/news-and-res...9-wl-02261376/

[Overdue]

Apples and Oranges, Is There A Safety Net?.



When policies become scarce and you begin to hear "only renewing existing policies", you might find new companies (whose names you do not recognize) eventually enter the market, especially through brokers. Watch for carriers that are not licensed in your state, but rather provide coverage through Lloyds of London. I am not knocking Lloyds of London, just mentioning that buyers should know what they are getting.



Also, check if the carrier that IS licensed in your state, is covered by an IGA (State run insurance guarantee association [where state insurance commissioner regulates insurer reserves, investments, risk, etc., BUT, in the event of multiple claims whereby the carrier becomes insolvent, the IGA will step-in and pay the carrier's outstanding claims]). I am not sure that all states have an IGA (I know PA does [PIGA], I think years ago Texas did not; not sure about currently).



In 35 years I have experience with a few insolvent US based carriers with outstanding claims. Extra paperwork but the claims were paid (none were boats though).


Some carriers may have re-insurance, which is a consideration, if you have time to research.


Other posts mentioned insurance acquired through the same carrier insuring their home, auto, etc. That is probably the smoothest path to coverage with a good carrier. Interesting example: about 15 years ago, NJ insurance commissioner stopped requiring carriers licensed in their state, to insure homes on the barrier islands, so they all non-renewed policies insuring barrier island homes. Some agreed to renew "if you already have a homeowner's policy with us elsewhere in NJ". Everyone else was stuck with Lloyds of London policies, without protection of NJ's IGA.


We all hope we will never have a claim, but it is good to know what you are buying.

[Sand crab]

I was just wondering if a liability only policy would be easier to obtain?

[Overdue]

Good suggestion. I think maybe/ probably, if you have sufficient experience to pass their underwriting muster, but then will the new owner "self-insure" the hull? Not if the boat is financed. How many buyers want to take that risk? Will marinas accept a boat with liability only? May not be easy.

[Sand crab]

I thought the liability part was the only thing marinas cared about. It was for mine and my friends marinas. Are there marinas that require full coverage?

[Overdue]

Yes. Some marinas require not only full coverage (hull insurance), but also require that they be added as an "additional insured" and ask for a "waiver of subrogation." I think most carriers refuse the request for waiver of subrogation. Boat owners should always ask their carriers if they are allowed to sign a waiver.

[Sand crab]

I only know Washington State and the rules there and so far all the marinas there only require liability. For instance I checked Shilshole Marina which is huge and one of many run by the Port of Seattle and they say $300k liability. Here's a pic. I wonder if that's the minimum liability rule statewide now? Which marinas require full coverage?
https://www.portseattle.org/sites/de...ook_2021_0.pdf

[smj]

The marinas I’ve visited have asked for liability only, some up to 1m.
I believe liability only insurance is getting hard to find, but then again I believe that’s true for most boat insurance.

[Sand crab]

SMJ, do all the marinas in one state ask for the same amount of liability coverage? It was when I had my boat in Washington. It might have been a law or rule.

[smj]

In Fl the amount of liability has varied, but nothing under $300k.
In NC we had to provide proof of liability and have the marinas name on the policy where we kept the boat. But when we hauled out in a very nice expensive yard in NC no proof of insurance was asked for.