Insurance Coverage
 

I'm new to this forum and glad to be here. I see we have a sponsor who sells boat insurance and I'll call Vito straight away, but I'd like some help in determining the best comprehensive coverage to get. Last summer a stainless steel plug on the top of the engine of my 2003 SeaRay failed and as a result a constant stream of water shot out of a hole in the plug and into the intake manifold ruining the engine. Both my marina and my Progressive insurance adjuster said they had never seen a stainless steel plug like this fail, but Progressive denied my claim. When I read my policy, the comprehensive section covers almost nothing. My boat was meticulously maintained and this bad part resulted in a catastrophic engine loss. Something like this should have been covered, but it wasn't. Does anyone know of how I should make sure my next policy protects me more fully? Thanks in advance for your help.

Re: Insurance Coverage
 

First off get a REAL marine insurer. Home owner policies are cheap and convenient but don't cover real marine events and boat eventualities. Your boat sinks they write a check to face value for loss and walk away. But who pays for the salvage and the disposal? YOU DO.

Real Marine insurers covers salvage, recovery, oil fuel spills/leaks & Fines if it sinks, and obviously the same liability for personal injury and vessel loss coverage. A friend of mine lost a $15000 boat and was socked with $9000 in recovery costs.... the home owner insurance check was $15000. Disposal costs were another $3000.

But even real Marine insurers do not cover everything and every kind of run of the mill disaster. In my own policy on a real marine insurer in "fine print":

1- Nov 1 thru May 1 there is NO in water coverage it remains suspended unless I get a special "in water" off season rider.
2- My insurance coverage is totally suspended if I enter Florida waters.

Little things, but catastrophically bad if you don't know and do it assuming all is the same.

Re: Insurance Coverage
 

Thanks Capt., will do.

Re: Insurance Coverage
 

Don't want to burst your bubble but boat policies do not cover damage to an engine or drive unless it's due to a sinking, accident or hitting something... Let's face it, boats break all the time and unless you purchase an extended warranty on the motors or drive, they are not going to cover it.

Think about your car.... You blow a radiator house, engine overheats and you blow a head gasket.... Your car insurance is not going to cover that but it you had an extended drive train warranty the company you paid for that warranty probably would.

If I were you, I would call Vito and see if he deals with any boat insurance companies that provide the type of insurance you are looking for... If the answer is no, if you want to pay some money to get your engine insured, there are after market companies out there where you can purchase extended warranties for engines and drives.

Hope that helps.

Re: Insurance Coverage
 

Thanks Gary and have no fear about busting the bubble. A brand new motor did a complete job of that. It was just disappointing that a plug that should never fail caused such an expensive result. I realize you're correct, no insurance company takes on that kind of risk.

Re: Insurance Coverage
 

Maintenance is not insurance. And insurance does not cover wear and tear.

Call Vito.

Re: Insurance Coverage
 

Insurance companies also have escape(make no payment) clauses.

We salvaged a boat that sunk in its slip in the Highlands when it got stuck under a fixed dock in a rising tide. We crank and pump and refloat while the insurance examiner watched on. Insurance guys shoots pictures.

Insurance guy is staring at the stern of it and the 90hp O/B motor like he's going to rape the boat. He steps on board and is shooting more pictures, cabin, helm, transom and several of the side of the O/B smiling.

He asks owner if that truly is a 90hp on the transom or just some decal change on the cowl.

Owner confirms that it is a two year old 90hp. Insurance examiner makes note of that, asked the price, where he bought it from. Gets that info. Has owner sign off on the description given.

Then he tells owner the max Hp for the boat on the Capacity Plate is only 75hp. He tells the owner, the overpowering voids ALL his coverage since he did not get a Rider for non-standard and over powered vessel. And that his loss and the recover costs are not covered, because of the oversized O/B is not the boat they were told of and insured.

He can appeal it but his is unlikely to get a dime for the sinking.

A REAL WAKE UP CALL FOR EVERYONE.

Re: Insurance Coverage
 

That's not encouraging. I was looking for insurance for my little 14 ft boat with a 9.9 motor. All was going fine, the price was right, but when I told them the boat was built in 1984 I was told they do not insure boats over 25 years old.

I thought about going to a marine specific insurer, but the wood transom had been replaced and there is no longer a capacity/HP sticker on it. Now I'm wondering if I insured the boat whether there would be some fine print clause about the boat being "modified" and ineligible for any claim.

Re: Insurance Coverage
 

Quick lesson most may know some may not:

Two types of insurance.

1. Liability. I reccomend this for ANY boat owner as this protects you from lawsuits if anyone gets hurt on your boat as well as if you hurt anyone with the vessel. It's a must. You don't want to loose your house due to an unfortunate accident.

2. Propert coverage. This covers your personal property (boat, motor, personal property). This coverage is more of an option (unless you have a loan on the vessel, if that's the case the lender may require you carry this coverage).

If you have an umbrella policy you want to make sure you carry enough liability to satisfy any underlying limit requirements. Once again, God forbid there is an accident, you WILL be sued. Don't loose your home over it!!!!!

Re: Insurance Coverage- UMBRELLA COVERAGE could screw you
 

Marine insurance has a few more items as mentioned above.

The homeowner's umbrella policy DO NOT. Items like recovery, disposal costs, oil spill costs are NOT SEPARATE COVERAGE and CHECKS and they simply pay boat value and walk away. Besides losing your boat you have a great BIG bill they do NOT cover after boat is paid.

If the boat sinks you have NO IDEA how under covered you are with a home owners' umbrella coverage added.

LESSON LEARNED
That umbrella coverage pays you value of boat ONLY for a total loss like a sinking. That's it.
All the other stuff recovery/salvage , fines, disposal costs YOU PAY FOR. Which in many cases will be close to value to the older boat. In the end your $13,000 umbrella coverage leaves you close to $0 or writing a check if there's a salvage. Be VERY AWARE of this lack of coverage.

MORAL OF THE STORY
Home owners coverage is NOWHERE NEAR a true marine insurer's coverage. Bad time to learn is after your sink. That your cheap policy is cheaper for a very good reason YOU will be paying for now