Shopping for insurance - admit it's a liveaboard or not?

[pdxgrl33]

Hello All:

We're about to buy our first liveaboard (40' Bayliner). Just received a very clean survey back, with all experts saying we've found a very solid boat. This boat will be our residence, docked at a marina.

We are receiving mixed messages about insurance shopping, with some people saying that we must disclose that it will be a liveaboard, and others saying not to tell and call it a recreational boat. We will be financing the purchase, and some have suggested that the insurance company will speak to the lender and the deal could fall through if we disclose that it's a liveaboard. We're concerned about having the correct insurance. So..... what say you? Thanks very much!

[denverd0n]

I'm sure you'll get a variety of answers. Here's mine...

When it comes time to make a claim, your insurance company is not going to just hand over a check without first making sure that you are entitled to the money. Lying to them on your insurance application is one of the very best ways to make certain that your claim gets denied.

Will they be able to catch you at the lie? I don't know. Maybe not. Or maybe so. In any case, if you DO get caught, then all that money you spent on premiums was a complete waste.

Of course, if they don't ask, then you don't have to tell.

You pays your money and takes your choice. Good luck, whatever you do.

[pdxgrl33]

Originally Posted by denverd0n

Lying to them on your insurance application is one of the very best ways to make certain that your claim gets denied.

Thanks! This is exactly our concern and we're not inclined to lie, but it does seem that getting true liveaboard insurance can be a challenge. My gut says to shop it around truthfully and see what happens.

[Capt Phil]

I lived aboard for about 12 years on two different boats in San Diego and Cox Marine insurance from either LA or Long Beach insured both vessels over the years. Great folks to deal with but also never had a claim. Phil

[nauticalnomad]

Define living? Just get your mail delivered to a family members address and stay on the boat. Problem solved.
How can you define living...

[Teknishn]

Have been researching insurance costs since I purchased my 35-year old boat a few months ago (also have a current survey report for the boat). As denverdOn stated, you will get various answers. Now, mine is a smaller boat at 27-feet so getting basic recreational coverage is very affordable (Boat US quoted around $640 a year, 3rd party coverage tripled the cost based on my boat ownership experience...8-years). State Farm was around $800 a year for basic and doubled at comprehensive insurance as a recreational boat owner. Geico (which is basically Boat US) wanted $760 for basic coverage and tripled that amount for comprehesive....again, based on my boat ownership experience and for a recreational boat. Now, I've been doing this online as I live abroad and have used different e-mail accounts to suss things out on the recreational vs. liveaboard thing. BIG difference! Boat US goes from the previously mentioned price to $3K a year, State Farm in Virginia told me that they don't cover liveaboards on boats of my vintage. Geico will cover...for $5k a year, but only for repair or replacement costs of my boat no to exceed $20K or damage to other boat for the same amount. Hell, scratch a new boat's hull the repair bill could run much higher. Now, this has all been done online and haven't talked to an actual person....so some of my data here should be considered a result of computer algorithms and may not reflect reality when dealing with a real person at an insurance office.

I'm opting for basic insurance and replacement costs for my boat as a liveaboard. Much more afraid of hurricanes and sinking than I am of hitting another boat.

Just my thoughts on the subject.

[sailorboy1]

Tell the truth. If they ask you need to tell them, but if they don't ask don't.

[rwidman]

Lying to your insurance company is a bad idea. If you have a claim and they find that you lied on your application, they may not pay the claim. Remember, liability claims can be enormous.

[newhaul]

Do you plan on ever spending time cruising in your area or just a dock queen? most insurances don't question full time cruiser as opposed to live aboard. They are the same but look different on the insurance papers my insurer won't insure live aboard but have no issues with me as a full time cruiser with a home marina.

[SimonV]

I believe a live aboard is very different from a cruiser, just look around your marina. If you were an insurance company would you want to insure the live aboard with bikes, wheelbarrow, oil drums, car parts and a collection of outboard motors in different states of repair. Or would you prefer the cruiser who is regularly moving and is ready to change locations should the need arise. We have read it here and in other forums when a newby states they are looking for advice on selecting a live aboard boat, not that a cruising boat can't be lived on, it can. But not all live aboard boats can cruise.

Sent from my GT-N7105T using Cruisers Sailing Forum mobile app

[Tkeeth]

I opted for the truth, which made life difficult for a bit. Bluewater ins in florida got me written by a eruopean company, they dont care. Also ended up with way more coverage area at a cheaper price.

[pcmm]

Being a liveaboards and having insurance is a catch 22. When i last researched this almost no insurance company would cover you as a full time 12 month of the year liveaboard! Now it seams to be getting a bit better. But the premiums are out of line with th risk. The more you are on your boat the less risk there is of theft, sinking, etc.

[Stumble]

Lying to your insurance company not only voids your insurance, it also can be a felony. Insurance fraud really is a thing. Ever think about how stupid those guys are who rob convenance stores? Ya doing this is going to save you about what they get.

[valhalla360]

Honesty is the best policy. Lie and you may not actually have insurance.

[Dave22q]

Assuming an insurance company is stupid or lazy is ALWAYS a mistake. If you lie on the application you might get the policy but you have provided a rock solid basis to reject any claim in the future. You might get away with it but the odds are long.
My memory might be failing but I do not recall the live aboard question on my Boat US application. They were very explicit about wanting to know where I would cruise.