# Insuring your boat



## Lockndam25 (Feb 14, 2017)

I came across a project thread and at the end they were talking about insurance. A few things came to my mind, if a boat reaches a certain age it can be classified as a classic and insured to appraised value or if you amassed a amount for the renovation and use that as a replacement amount. 

I know this because that's the industry I'm in. Some collector insurance companies will offer policies that are a stated amount, the most they will pay minus deductibles and depreciation until replacement is made. Agreed settlement is the amount that you agree to minus deductibles. 

Bottom line is check your policy you could have a A.C.V policy or actual cash value. And they will settle for blue book amount. Not good if you own a 1990 tracker and you put thousands of dollars rebuilding. Outboards can be insured separate depending on the company and the state you live in. 

If you have questions I can find the answer for you, and this is not a pitch to buy anything from me,
I thought I might have something to offer others free advice.


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## LDUBS (Feb 14, 2017)

Don't the stated amount policies still have some kind of FMV clause? Seems that would be needed to protect against potential abuse. For example, guy says his $10K "classic" is worth $25K. That guy is heavily motivated to have a loss.


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## Lockndam25 (Feb 15, 2017)

They would question it if they couldn't see the value, on like houseboats and big boats they want a survey done to validate the value. That could cost the owner 500 dollars or more depending on the size of the boat.


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## Butthead (Mar 6, 2017)

I have an agreed settlement policy on my 2000 18' Scout center console. Cost me about $200/year. Seems like a steal since it includes gear coverage, free on the water tows, and trailer breakdown tows/assistance. 

Can you give an estimate on generally what a policy runs for about $2000 worth of insurance for an all-electric tinny plus $1000 worth of gear? Located in MD, boating since I was a kid, over 10 years of ownership. I've never thought about getting insurance for it, but just curious. Thanks!


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## Lockndam25 (Mar 8, 2017)

Butthead I would contact a Foremost agent they start at 100 dollars a year, and I'm only saying that is here in Missouri. for a fishing boat. Im sure that the rate would not be the same for all boats and were they are operated at. any time your in a area along the cost line they want to know if you intend on using it in the ocean. so they can rate on that risk.


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## S&amp;MFISH (Mar 10, 2017)

My policy is "agreed value"; 10,000 on boat/motor/trailer, 2,500 contents, 500 deductible, for $174 yr. Thoughts..


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## LDUBS (Mar 10, 2017)

OK, I know the focus here is on insuring the boat and there will come a time when the value of the boat may not justify the cost of insuring it. That will vary for each individual. However, the biggest risk of loss is not from the loss of your property (your boat). It is from 3rd party claims against you for property damage or bodily injury. So, you might decide that you don’t need to insure your boat because its value is so low you will accept the risk of a loss. But you should seriously consider keeping liability coverage as your financial risk will be many times the value of your boat/equipment should you be deemed negligent in an accident. It could exceed the value of you bank account, home, etc. I carry the same liability limits on my boat as I do on my auto and homeowners policy.


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## paper (Mar 10, 2017)

I come from an insurance family, so I have my boat insured.. It's an 87' MirroCraft with a 15hp Yamaha of similar age, and a homemade trailer.. I wanted insurance purely for liability which came to $75 a year from State Farm.. Oddly enough, they gave me replacement value full coverage with $100 deductible for exactly the same price.. :shock: 
Needless to say, I took the full coverage for $75 rather than the liability for the same price.. :lol: 

I hope I never need it.. [-o<


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## CedarRiverScooter (Mar 11, 2017)

Another option to mitigate liability risk is to get an umbrella policy. The advantage to that is it covers all areas, not justr when you are out boating.


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## LDUBS (Mar 12, 2017)

CedarRiverScooter said:


> Another option to mitigate liability risk is to get an umbrella policy. The advantage to that is it covers all areas, not justr when you are out boating.



+2 -- good way to protect assets.


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## richg99 (Mar 12, 2017)

My understanding is that, if you have an umbrella policy, you have to be CERTAIN to carry a stated amount of liability coverage on ALL of your various insurance policies. 

It gets confusing when your home/car are covered by one agent, and your boat(s) are covered by another agent in another State.

richg99


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## LDUBS (Mar 15, 2017)

richg99 said:


> My understanding is that, if you have an umbrella policy, you have to be CERTAIN to carry a stated amount of liability coverage on ALL of your various insurance policies.
> 
> It gets confusing when your home/car are covered by one agent, and your boat(s) are covered by another agent in another State.
> 
> richg99



Yep, an umbrella policy is intended to be excess coverage for other underlying liability policies. Your liability coverages will have specific limits, unlike property coverages which may use ACV, FMV, etc.


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## Lockndam25 (Mar 21, 2017)

you have to list the boat on your umbrella and carry a certain liability amount on your boat with some company's and it depends on what state you live in and how they file the policy with the state to be compliant with each states laws. just remember that every state is different because its the states laws that require Insurance company's to file their policy's a certain way. and that makes my days difficult sometime when dealing with people in other states.

Bottom line is boat insurance is cheap, And I wouldn't do without it just from a Liability stand point, I don't want to lose my assets over a 100 dollars or less a year policy


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## PGRChaplain (Mar 26, 2017)

Mine is old enough buying Insurance doesn't make sense. Liability Rider on my Homeowners Policy for the Boat, No Charge.


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