Insurance?
 

This is kind of weird...

We just called our insurance company to arrange for insurance on the '94 182 Barchetta we plan to buy tomorrow. The agent wants us to basically "part out" the insurance. E.g.: "How much for the hull? How much for the motor? How much for the trailer?"

Say what?

Here's the problem I have: Near as I can tell (IOW: SWAG method): A replacement hull would cost $2k, engine and outdrive: $4.5k ($3k engine, $1.5k outdrive), trailer: $1k (conservative est.). Never mind the $tainle$$ High-5 prop. The sum of the individual parts adds-up to well more than the cost of the whole.

So how do y'all do it?

Jim

Re: Insurance?
 

That's pretty much standard practice up here when you attach a boat to a homeowners policy. That way the insurance company can get more premium from you than they would if they took the boat/trailer/motor as whole package. The boat and motor (assuming an I/O) should be treated as one unit for value purposes though. The trailer can be separated. If it was an outboard then they can separate it from the boat.

The insurer viewpoint is...statistics show that they have far more claims for the individual parts (ie boat / motor-outdrive / trailer) than they do for the entire package and as such, they break down the insurance into the individual parts so that they can be fairly rated. 'Fairly' is a term open to definition in the insurance world though....and they should supply tubes of KY jelly with every policy premium notice. :)

I would insure the boat for the value of the individual parts (boat & motor combined and separate of the trailer). Yes, it will result in a higher value than the value of the package but that way you wont feel shortchanged if something unfortunate were to happen to one of those parts. And the small difference (if any) in premium wont be a factor.

Re: Insurance?
 

That actually makes more sense. Oh well, I'll see what they say when they call back.

Thanks,
Jim

Re: Insurance?
 

Ok, that's what they're going to do: Insure the boat for the book value (which is more than what we will be paying), incl. the power-train, and the trailer separately. Here's the odd thing, tho: According to our agent, they're insuring the trailer "separately," for $1k, at no extra charge! Um... well... if you insist :)

Has to be the friendliest insurance company on the planet. :)

Not long after we first insured our sailboat with this company, I read on a sailing forum about how boat insurance through the average home or car insurance company was often inadequate. Apparently, usually many of these policies don't have "toxic spill" coverage. Many boaters aren't aware of it, but if you sink in a U.S. waterway, and release toxic substances (e.g.: gasoline, diesel fuel, oil) into the water, you can be on the hook for cleanup costs--even if the sinking is through no fault of your own. Our policy has $300k "toxic spill" coverage.

I told our agent that, from what I'd been reading, our insurance company appeared to offer very good, marine-specific coverage, for a home/car insurance company. She told me that was because, years ago, they set up a separate division/subsidiary/whatever to handle just boat insurance at affordable prices.

Jim

Re: Insurance?
 

Nothing is 'free' in insurance. The value is simply built in elsewhere but i am glad to hear that you are happy with the end result. There's nothing like a little peace of mind to eliminate the worry of what happens when a problem does occur. :wink_thumbup:

Re: Insurance?
 

What did you end up paying for boat insurance? I recently was offered a policy for $250/ year covering $8000 for the boat and $500,000 personal liability. Does this seem reasonable. Boat insurance is not required in Massachusetts, but I thought it would be the smart thing to do.

Re: Insurance?
 

I don't recall, off-hand. I think a bit more than half that. But ours is for $5600 on the boat, $1500 on the trailer and $300k liability, IIRC.

Even if you didn't want to insure her for theft and damage, you'd definitely want liability insurance.

I don't know where you're boating, but make sure your insurance includes "toxic spill cleanup." If you wreck in the water, for any reason, even if it's an accident for which you're not at-fault, it is my understanding you can be held responsible for any toxic spills, such as fuel, oil, etc.

Jim

Re: Insurance?
 

I've got a $10,000 policy on my boat....

Re: Insurance?
 

Ended up paying $220 for $8000 on boat and $300K liability.

Re: Insurance?
 

You should call a company that specializes in marine insurance. A good one is United Marine Underwriters. Should come up on a google search. I pay $350 per year to cover my boat for $13,000 and the trailer for $2,000. It includes a separate limit for electronics, gear and equipment, etc....