Some member expertise on insurance coverage for a friends new boat . . .

[Expidia]

Possible expertise on boat insurance coverage I'd like to reach out to the members for some i opinions on coverage for a friends new custom built 27 foot wooden HackerCraft that is to be delivered in May of this year. I don't know what his final cost will be, but these handcrafted custom made boats can be in the $200-300,000 range. So far his quote from Geico's marine binder is as follows: $220,000 hull and equipment coverage with a $2000 deductible Liability comprehensive per person and prop damage each person 300,00 bodily injury and prop damage each accident combined 500,000 Looks like fuel spill 854,400 per accident longshore harb wk comp = statutory Med payments = $1000 Uninsured boater 500,000 Net annual premium $1,034 He also checked with Boat US for an insurance quote and I think he said they were close to double the Geico quote. He also already has an umbrella policy (like I have) I think for a million. This boat will only be used in a large fresh water lake. I can't be of much help on the proper coverage as my first inkling is insurance agents tend to lowball a first policy to capture the initial business, so I have no guess if he has enough coverage? I mentioned to him that the medial payments seemed very low to me at $1000 and he checked with the agent and to raise the medical a few increments it was only like another 40 a year added on. I don't know what these medical payments refer to? My rig bought new in 2007 with trailer and accessories was less than 20k, so this is way out of league for insurance coverage (I think mine is like $125 a year). Any input on the proper coverage would be appreciated. Thx

 

[Scott Danforth]

Insurance rates vary by location as well. Im paying $600 per year for a $8000 boat with $2k worth of gear, etc. with similar coverage. If I move my boat back up to the cold weather, the rate cuts in half. insuring a $200k-$300k boat for $1-2k. peanuts in the grand scheme.

 

[avenger79]

would have to check if the med payments are for him or passengers? if for him they may be taking into account his med ins through employment or the umbrella. otherwise yeah they look very low. the rest seems in line with what I would consider norm. I do not however have a 200K boat. so take it for what it's worth.

 

[JoLin]

Location is really important when rates are calculated. My 16' aluminum outboard boat in FL ($4k agreed value) costs more to insure than my 26' Carver on Long Island ($22k agreed value). Why? Because according to GEICO, FL is the boat theft capital of the country.

Can't your friend fold the boat insurance into his umbrella policy? Thought umbrella policies were ideal for that sort of thing.

 

[thumpar]

I would check with an independent agent. My agent checks all the companies and gets me the best coverage for the best price. For my boat ($10k agreed value) I pay $21 a month.

 

[Expidia]

thanks for all those responses so far. I've passed them along to my friend.

 

[K-2]

$2,000 seems like a low deductible for a boat of that value? Or is that common for pleasure boats?