Reply
 
Thread Tools Search this Thread
 
Old 03 May 2009, 20:01   #1
Member
 
Country: Canada
Town: Tobermory, Canada eh
Boat name: Verius
Make: Zodiac Hurricane 590
Length: 5m +
Engine: Yamaha F150
Join Date: Oct 2006
Posts: 1,345
Send a message via MSN to Stoo
I learned something about insurance this week...

I was speaking with my insurance broker a week or so ago and I learned something that I thought might be of interest to you...

I have always insured my boat for "replacement cost"... which in my case was the price I paid for the boat when I purchased it used. (With a new trailer etc, about $55K). I expressed my concern to the broker that I would have a hard time finding a comparable used boat, and he told me that I could insure the boat for the cost of a new one, as long as I was willing to pay the increase in premium. I have always assumed that if I suffered a loss with my boat, it would be a total one... the boat would either be stolen, or wrecked in a car crash since I tend to trailer it all over the place. The increase in premium wasn't much, so I have increased the value to $120K.

What was interesting in the conversation however, was the following bit of information... If the boat was destroyed or damaged while it was being towed and IF I didn't have separate liability insurance on the boat, the replacement cost provisions of my policy would be "over-ruled" by my car insurance. In other words, if you are towing your boat, and you don't have liability insurance on the boat, the value of the boat will be the depreciated value, in much the same way as the value of the car would be depreciated... even though you are paying replacement cost premiums~

In my case, I do carry separate liability insurance on the boat since I use it with my diving business, but I understand that many boat owners do not carry liability insurance on their boats, and rely instead on an umbrella liability policy associated with their home insurance.

I wasn't aware of this, but thought it might be good to pass this along. I suppose that this policy might vary with the insurance carrier, so you might want to review the details of your policy with your broker....
__________________

__________________
Pump it up and RIDE!

www.wetspotimages.com
Stoo is offline   Reply With Quote
Old 04 May 2009, 15:52   #2
Member
 
Country: USA
Town: Oakland CA
Length: 3m +
Join Date: Feb 2005
Posts: 6,653
Insurance is really weird business. There's so many ways you can end up being un- or under- insured it's not even amusing.

Best way to tell is to talk to your agent, and come up with a list of possible scenarios and bounce those against your coverage (not just boat: boat, auto, and home.)

Be forewarned, though, you will probably never get your money back from insurance preniums. They're not in business to cover your losses, they're in business to make money.

(Sorry for the rant...)

jky
__________________

__________________
jyasaki is offline   Reply With Quote
Old 04 May 2009, 20:44   #3
Member
 
Country: Canada
Town: Tobermory, Canada eh
Boat name: Verius
Make: Zodiac Hurricane 590
Length: 5m +
Engine: Yamaha F150
Join Date: Oct 2006
Posts: 1,345
Send a message via MSN to Stoo
Quote:
Originally Posted by jyasaki View Post
(Sorry for the rant...)
No need for an apology... I think insurance companies are about as popular as Swine Flu is these days.

I think of insurance as a bit like a lottery... makes no sense, will probably never pay off, but someone has to "win".

My last boat paid off when I was rear-ended and it was "totalled" as far as the insurance was concerned. I ended up re-acquiring it, repairing it, and selling it... for more than I paid for it originally. In fact, I doubled my money. All legally!

I think your suggestion is a good one.... that's exactly how this discussion began.... with a conversation about the most likely scenarios where I ended up boatless!

As an aside, you can greatly reduce your premiums by putting a large deductible in place... in other words, just insure for the BIG losses!
__________________
Pump it up and RIDE!

www.wetspotimages.com
Stoo is offline   Reply With Quote
Old 05 May 2009, 12:08   #4
Member
 
Country: USA
Town: Oakland CA
Length: 3m +
Join Date: Feb 2005
Posts: 6,653
Quote:
Originally Posted by Stoo View Post
As an aside, you can greatly reduce your premiums by putting a large deductible in place... in other words, just insure for the BIG losses!
Very true. However, unless you can stand to be boatless for a while, make sure you can scrape up/borrow/steal enough to pay off that deductible, should the need arise...


jky
__________________
jyasaki is offline   Reply With Quote
Old 05 May 2009, 19:38   #5
Member
 
Country: Canada
Town: Rigaud, Que.
Boat name: Rigaud Explorer
Make: 6m Bombard
Length: 6m +
Engine: Yam115
Join Date: Aug 2008
Posts: 90
Here in Quebec what ever you tow it's covered by your car insurance and yes the value is at a depreciated one. But for my cargo trailer which is for my business the trailer is covered under the truck ins. but not the merchandise inside. So if I get plowed into the insurance covers the trailer but not the content? Funny thing is that if I put everything inside the truck instead of the trailer, it's covered. My broker wanted me to pay extra for that but I refused.
__________________
Rigaud is offline   Reply With Quote
Old 06 May 2009, 20:34   #6
Member
 
Country: Canada
Town: Tobermory, Canada eh
Boat name: Verius
Make: Zodiac Hurricane 590
Length: 5m +
Engine: Yamaha F150
Join Date: Oct 2006
Posts: 1,345
Send a message via MSN to Stoo
Quote:
Originally Posted by jyasaki View Post
...make sure you can scrape up/borrow/steal enough to pay off that deductible, should the need arise...
That's when I'd launch my appeal on Ribnet
__________________

__________________
Pump it up and RIDE!

www.wetspotimages.com
Stoo is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off





Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -5. The time now is 20:48.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.