# Boat Insurance Tips



## georgeharry (Apr 19, 2010)

As with car insurance, policies come with an excess to discourage small claims and for boat insurance, this is usually quite a large sum of money, as the intention of the insurance is to cover you against substantial losses instead of just scratches and dents. There is little difference between the two types of policy except the amount of cover provided with boat insurance is considerably larger.

Almost all states make the standard boat insurance a requirement so it is important to abide by the law and obtain boat insurance as soon as you become a boat owner. Strangely, in the eyes of the Marine Industry, a houseboat is in the same category as pleasure boats like sailboats, jet boats and cabin cruises for instance. A speedboat for instance, is capable of high speeds requires a much different type of insurance than a small fishing vessel would because of the potential liability for the insurance company that comes with a speedboat compared to a fishing boat.

Almost all boat insurance policies will cover the cost of replacing the vessel, engine and the boat trailer but Actual Cash Value boat insurance plans only pay for replacement less any vessel depreciation from the point of loss. When the craft is a complete insurance right-off then the second hand value of the boat is used to estimate its market value. Optional insurance usually includes coverage for reasonable repairs, emergency services to your boat, motor, or boat trailer, and wreck removal. Where there has only been limited damage to the vessel, partial damage repairs include the restoration less any items that can be deducted.

Agreed amount value boat insurance policies mean that the owner of the boat and the insurance company have decided on the cost of the boat, and in the aftermath of a total loss the owner will be compensated with that amount. Agreed amount value policies also replace old objects with new ones, exclusive of any assumption for depreciation. The majority of agreed amount value boat insurance policies necessitate actual cash value on specific destroyed assets like sails, protective covers, batteries, dinghies, trailers and aged outboard motors, lower drive units etc.


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## perchin (Apr 19, 2010)

georgeharry said:


> Almost all states make the standard boat insurance a requirement so it is important to abide by the law and obtain boat insurance as soon as you become a boat owner.



Is this true for Michigan? I've never been asked by the secretary of state's while licensing, or by our Insurance guy, or by DNR for proof of it or anything. Just curious


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## perchin (Apr 19, 2010)

Nevermind... not a legal obligation in MI.

https://www.boat-ed.com/mi/course/p4-1_boatnumbers.htm#other


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## cyberflexx (Apr 19, 2010)

George

Do you work in the insurance field? Be careful giving insurance advice if you are not licensed. Might cause some issues, just a though I had...

I hope this helps some of the members here at Tinboats.net.

As for me, my wife owns a Nationwide insurance agency, she is my insurance agent  (no I dont get the 'my wife is an agent do i get it for free', discount either LOL!!! ) My wife had also been in claims for several years ( bodily injury and also personal property and vehicles) so she knows the laws in our state and the insurance policy fine print about the product she sells. I usually let her deal with that type of drama and I just go fishing. I havent had a claim while fishing, hope i never do. 

I do know a guy in the bassclub who got his outboard motor replaced because his engine sucked up a bag and blocked the water cooling intake. I think he had to fight pretty hard with his claims adjuster though. One other guy got his motor repaired because he hit a railroad tie and basically ripped off his lower unit. I dont know what insurance companies these were through.


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## russ010 (Apr 19, 2010)

everything George says is legit - he's only talking about the insuring the value of the boat... Actual Cash Value (ACV) vs. Agreed Amount.

Nothing he said in any other part of the post was wrong either

OH .. I am licensed in all states - the benefits of being an underwriter :wink:


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## russ010 (Apr 19, 2010)

cyberflexx said:


> I do know a guy in the bassclub who got his outboard motor replaced because his engine sucked up a bag and blocked the water cooling intake. I think he had to fight pretty hard with his claims adjuster though. One other guy got his motor repaired because he hit a railroad tie and basically ripped off his lower unit. I dont know what insurance companies these were through.



I can see why he had a hard time with the adjuster - this is a comprehensive claim and those are the worst to deal with because a lot of people will do some stupid stuff just to get a new motor. That's why adjusters are so freaking paranoid about everything - usually you have 1 legit claim in about every 10 that are turned in. Most people lie just to get new stuff.

Insurance... sometimes I think you need insurance just for insurance with some of the crap I see


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## S&amp;MFISH (Apr 25, 2010)

Russ, as an underwriter,who in you opinion is the best all around company to deal with? This is our 4th season with ours,never had an incident.Thinking about changing company,rates this year went up 10% for no apparent reason.Looking for that professional opinion,thats all. Thanks, Steve.


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## russ010 (Apr 26, 2010)

Are you referring to Marine Insurance?

If you are, you really have to shop because every state is different for rates.

I would start with Progressive. I think they have the best all around rates and service for marine use. 
You might also check with State Farm or All State after that. 

I underwrite National Account companies (Lowe's, Home Depot, Coke, etc)... basically the company has to generate more than 700 million in revenues before I can look at them, so I don't deal much with personal lines insurance.


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## cyberflexx (Apr 26, 2010)

just remember, you get what you pay for... I've heard way to many storys since my wife is in and my dad was in the business..


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## S&amp;MFISH (Apr 27, 2010)

Thanks for your opinions guys.


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