| I have my insurance through BOAT US, the premium was about $400 last year on
my new Catalina 27. Fortunately, I have never had a claim but I have used them
for the last four or five years and found them to consistently have the best
price. The also give you a discount based on your boating education, lack of
claims and experience. By the way BOAT US is The Boat Owners Association of
The United States.
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| My agent is Al Blackadar (Plaistow NH, 603-382-4771 or 603-772-9386).
The underwriter is Reliance. I have a $50,000 policy, 1% deductible,
liability $500,000, $2,000 medical and the premium dropped from $466 to
$447 this year.
I have not had a claim - so it's hard to know what they'll be like to
deal with then.
A little over a year ago I asked BOAT US for a quote. They didn't come
close to this price. In fact they asked if I would send them a copy of
my policy for their review. They didn't understand the variance and we
both wondered if I had aolicy that might be worthless when it came time
to make a claim.
I've never heard another word from BOAT US - either the policy is OK
and they simply couldn't match it - or they dropped the ball in following
up. At the moment, ignorance is bliss.
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| One way to reduce premiums is to increase your deductible from 1% of
hull value to 2%. Our premium is $644 with a 2% deductible and $106 more
with a 1% deductible. Our coverage is for the US east coast from Eastport,
Maine to Morehead City, North Carolina as well as New Brunswick and Nova
Scotia, $500 000 liability, and $90 000 hull coverage. Our Avon dinghy
and liferaft are covered by a separate endorsement with a $100
deductible. The policy is with INA/AETNA and my agent is Nancy Ronan at
John Alden.
An agent specializing in marine coverage will know which companies have
the best rates -- one company wanted a premium about double INA/AETNA, but
that company mostly covered powerboats -- as well as which companies
settle claims quickly and fairly. The lowest premium is not always the
best policy (pun intended). A good agent can also help you if you have a
claim, recommending surveyors, painters, joiners, lawyers (god forbid),
and so on. I also learned from my agent that a certain mooring rental
company in a certain harbor (the one I use in Marblehead!) has had a few
too many boats go adrift lately and that I would be well advised to
inspect my mooring myself. Oh well, I know a good diver.
If anyone is thinking about chartering, you may not know that you are
not as covered by the boat owner's insurance as you think you are. If
you damage a boat you are chartering, the insurance company will
reimburse the owner for the repair costs. The insurance company can
then, if it chooses, sue you to recover those repair costs on the
grounds that you were negligent. So be careful. The people who chartered
our boat last summer admitted hitting a ledge through negligence.
Fortunately, the damage was minor and was covered by the security
deposit. The insurance surcharge covers the increased risk of damage to
the boat. It doesn't, as I understand it, cover you. In cases of minor
damage it isn't worth the insurance company's effort to sue you. Also,
be sure that the insurance company knows you are chartering the boat (as
owner or charterer). I heard of one case where a Pearson owner chartered
his boat without the permission of the his insurance company, the
charterers lost the boat, and the insurance company refused to pay the
claim, leaving the owner to sue the charterers.
Alan
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| The insurance agent (not my present agent) who told me about the
potential liability of charterers didn't have any suggestions beyond a
general coverage liability policy (possibly expensive and unnecessary
for us common folks). I doubt if the insurance companies will sue you
unless you do something really dumb, like take a boat with a 50' mast
under a bridge with 40' of clearance while drunk (happened to an
acquaintance's Valiant 40). A reputable charter agent is a good idea, too.
Alan
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| I was thinking more of something like I charter a boat, and
cause damage to somebody else's property with it. Like I colide
with a guy in a dingy out fishing, and he sinks, losing his boat,
and sues me. Obviously the owner of the boat is not involved -
it is between me and the guy in the dingy.
Like car liability insurance. Medical coverage for passengers,
etc. Do I need a similar policy to cover me when I operate a boat?
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| The liability coverage provided by the boat's insurance covers you, as I
understand it. Certainly you would want to be sure that the amount of
protection is adequate and that it does actually cover you (read the
policy and then discuss it with the agent if need be). $500 000 is the
maximum that is normally available without becoming involved in special
underwriting and probably surveys.
I once inquired about chartering a Valiant 40 in the Virgin Islands. The
insurance deductible was $5000. The owner made the comment that if that
large a deductible worried me, then perhaps I was really worried about
my sailing ability. After thinking about it, I saw his point. I now give
potential charterers of my Valiant 32 a choice: $1800 deductible or they
can pay the additional premium (over $100) for $900 deductible.
Don't make the mistake of chartering the least expensive boat. You are
likely to find the somewhat more expensive boats much better equipped
and cared for.
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