Boat Insurance

[Nepidae]

MTOA has a policy that is a Geico policy which was negotiated to omit the deductible for partial loss.

I have a BoatUS policy on our Albin.

I called BoatUS and queried them and after a discussion or 2 was told that when I renew in April (boat is on the hard now) they will put a rider on my policy about no deductible for partial loss.

Will cost an additional $25/yr.

Pays to ask.

[RobS]

Charles, thanks, I do recall a similar conversation many months ago with a Boat US rep about the depreciation on partial losses being able to be omitted in the near future and was hoping that would be implemented with underwriting before my next renewal which is this coming summer. I figured it was just a rep blowing some smoke up my a** but maybe there was some truth to that per your post. And I think you used the word deductible where you meant to say depreciation?..

[OldDemps]

Call these guys for a quote nationwide. I love them!

They placed me with coverage $500 a year for $85k hull and $500k liability w Chubb yacht policy here on west coast (no hurricane risk)

http://boatinsuranceonly.com

Twin rivers insurance agency.

[RobS]

Thanks Chris. Just called Twin Rivers...not licensed to write in NY. I spoke with an agent named Bob. He said changing carriers will require a new full survey. I guess the way too accept that is that if the premium is a savings (in addition to better coverage) the cost of the survey will over time pay for itself. I don't renew until August so ample time to dig into this...

[Nancy]

Twin Rivers is who I'm talking to. They do write policies in VT.

[Sisu22]

I just sent Twin Rivers a quote request. I'm with Progressive at $40K agreed value for $923 / yr.

[SelahWay]

Twin Rivers is who I'm talking to. They do write policies in VT.

Did you find out if they are writting policies in VT? I had my policy for a SeaRay through Foremost Ins.last year and shopping for quotes for Albin 36.

[Nancy]

Did you find out if they are writting policies in VT? I had my policy for a SeaRay through Foremost Ins.last year and shopping for quotes for Albin 36.

Yes, they do write policies in VT.

I wrote a long message on Sunday about my findings, and lost it somehow when I tried to post it. I'll try again when I have time.

[SelahWay]

Did you find out if they are writting policies in VT? I had my policy for a SeaRay through Foremost Ins.last year and shopping for quotes for Albin 36.

Yes, they do write policies in VT.

I wrote a long message on Sunday about my findings, and lost it somehow when I tried to post it. I'll try again when I have time.

I just got out of Jamieson Ins. office in Richmond. Brenda found a policy through Progressive for a 1980 36' Albin DC with 'agreed valus' of $40,000 for $465/year plus the dinghy at $135 per year. Haven't signed yet, interested in what you have to say.

[Nancy]

I’ve now read both the Travelers and Geico policies. Big fun. They’re very similar. Both are all-risk policies. On a partial loss on our 23YO boat, the Geico policy assumes 40% depreciation (10% per year starting in year 20 with a cap at 80%). The Travelers policy pays actual cash value (ACV). Depreciation is calculated on a case by case basis based on their evaluation of the overall condition of the machinery (not the overall condition of the boat) at the time of loss. Machinery that has been well-maintained will be depreciated less than neglected machinery.

The question seems to come down to whether to go with a fixed depreciation amount or have faith in the Travelers good reputation for claims handling and the hands-on involvement of the agent, who has many years of a strong business relationship with the carrier. Sitting at 40% depreciation for this year, I’m leaning toward moving to Travelers. The premiums on the two policies are nearly the same; the limits are somewhat different, but not significantly.

Input is welcome.

[RobS]

Nancy,
Thanks for that post. I've been a NYS licensed independent claims adjuster since the early '90's and, IMO, depreciation that is left to the discretion of the adjuster will be much less damaging to YOUR claim settlement than a formula that is written into the language of the policy. I emphasize YOUR because an adjuster that meets YOU will appreciate a savvy owner as yourself and the high standards you maintain your vessel to and should therefore not depreciate heavily. And that Geico depreciation will continue to grow every year, there is no way around that. For that reason the Travelers policy should treat you better.

But...(you knew that was coming!)... will they require a new survey? that can be a deciding factor too as to $$ and just an all around PITA....maybe, maybe not..each case will be different.

My 1974 CC is at the 80% depreciation figure now. Simply ridiculous. I'm working with my agent now on a move to Travelers, still ironing out a few things..

[Nancy]

Thanks, Rob. I knew your input would be helpful.

Travelers is not asking us for a new survey. I haven't seen the application form yet, but my understanding is that it includes a statement that lack of maintenance is not covered. Examples:

• if engine overheats because water pump wasn't changed, not covered

• if suck seaweed into intake, that is covered

• mechanical breakdown is covered - crankshaft breaks - items is sent to lab for evaluation -

• if piston fails because injector is faulty, that is covered because it wasn't lack of maintenance

It makes complete sense that establishing a relationship with the adjuster would produce a better outcome than just applying a formula. Thanks again.

[Pitou]

Though I'm not into the depreciation schedule with a 12 year old hull, I'm Travelers Yacht guy all the way with agreed value and machinery breakdown which I would not be without. As Rob stated, having a good adjuster is paramount. Over the years I've had two claims and both were resolved quickly and fairly with one being machinery breakdown. I had a gear blow up, was hauled the next day with the adjuster on site that afternoon and following up after engine and gear removed within one day of the gear being opened up for examination and he basically said you're good to go and do whatever you have to do (new gear ordered). I was back in the water within 15 days of the incident and the claim paid within 7 days of invoice submission. My mechanic stated that working with Travelers adjusters is generally pretty easy as a lot of them have actual sea time and first hand experience under their belts. The best part is that there was no premium increase in subsequent years. With all this said, I'd have a hard time turning my back on Travelers Yacht.

[Nancy]

Great to have a first-hand endorsement, Kevin. Heads up on the depreciation, though. According to the boilerplate I have (44101 (01-09)), machinery over ten years old is subject to depreciation. It would probably be negligible in your case.

[Nepidae]

This is a topic which is lengthy to respond to and is full of 'popular knowledge'. I'm going to address this in as short as possible way and suggest further investigation on your part. Something called Due Diligence.

First, Geico bought BoatUS insurance which was being underwritten by another company (which was previously Seaworthy) so what Geico bought were those who had insurance thru BoatUS.

PERSONAL EXPERIENCE;
I negotiated the Depreciation clause with Geico and pay $25/yr for a wavier. Geico also has instituted a "disappearing deductible" on their policies as well as "dock contract liability", both at no additional cost.

Second, everyone mentions and worries about the cost of insurance. BUT, everyone wants to get paid when they file a claim. I have never heard of BoatUS not paying a claim and they are generally the first on site for big storms with checkbooks in hand. You can get a sky high bill and walk away or you can call and inquire.

I got a bill this year that was higher than what it was last year and also when I had signed up for new insurance when Geico bought the BoatUS insurance which was $600 lower than when insured under the old Seaworthy company. This year it had edged up again, which was the 3rd year it had done that.

Short version, I called discussed and got a reduction back to close to the figure I had 3yrs ago with the addition of the depreciation waiver, my gold towing package put on my insurance policy along with my dues to BoatUS.

I'd suggest to anyone who deals with insurance to negotiate. Whoever you are with does NOT want to lose your business. It cost more money to acquire a new customer than it does to retain an old one. Go in knowing what you want. I'd venture to guess that most policies contain a depreciation clause, which is usually on machinery and add-ons, not on the hull and boat. Check and you will see the depreciation is not on a total loss of the boat.

Insurance is confusing and to us laymen a world in & of it's own. Make sure you are looking for what is worth fighting for and then talk with your insurance company. IF they won't talk then it is time to walk.