The thread about sportsmanship and damaged boats has me curious about the typical cat sailor's insurance coverage.

Do you carry insurance on your boat?

If so, what type is it and what does it cover?

Finally, what does your typical premium cost?

I have boat insurance through Illinois Farmer's Insurance. I pay something under $150/year. My boat insurance is not tied to a home owner's policy, but many people do it this way to save money.

I believe I have $7000 policy for my 1995 Hobie 20. I've only had one claim on it, and it was very easy. The other good thing is that they didn't increase my rates after I had the accident. Guess it's better than auto insurance in that regard.

It covers accidents, theft, fire, acts of God, and liability. I think it may be as much as 100K in liability, but I don't remember for sure.

I wouldn't be without it, that's for sure!

Fair winds,

Tim J.

Kevin,
I have racing insurance through State Farm. It costs me about $150 a year to insure my boat. It covers up to $15000 with no deductible. I have turned in claims for ripped sails, broken daggerboards, a broken boom and broken rudders all at seperate times with no questions asked. I think this is definitley the way to go. If you hit shallows and bust a board or hit another boat , you just make a phone call and its taken care of.
Leah

Good topic because you'd better check your policy before you make a claim for damage incurred during a race. Boat policies do not cover racing unless you specifically requested the coverage when you took the policy.

How is the insurance company going to know the damage was inflicted by a another boat while racing? I dunno.

I have a lot of questions about insurance, and these are things that I hate to ask insurance companies, because I don't want them to start thinking that beach cats are a bad risk and raise premiums. So I will ask you guys first.

When you have this insurance for $150 a year, is that just to cover damage to your own boat, or also to other boats you may damage?

It does not include liability insurance, too, does it? Do most of you have the liability covered as part of your homeowner's policy?

It seems like a lot of regattas now are requiring proof of liability insurance, so what do you do -- give them a copy of your homeowner's policy?

And what about people who do not own homes?

Can you add liability insurance to that boat damage policy, or do you have to get a "personal" liability policy?

In either of the above cases, how much more expensive is it -- and how much liability coverage are you required to have and by whose requirements? I assume it would have to be enough to cover you if you and your boat inflicted serious bodily injury or death on someone.

Also, a couple of you have mentioned that you should make sure your policy covers you for "racing." If you do not ask for a "racing" policy, does it cost less? I know some people do not mention that they are going to race, and they are afraid to ask the insurance company about it, because they figure it is going to cost a lot more for the policy if they know they are going to race. Just wondered whether that is the case (that there is a price difference)? Obviously, $150 is a very reasonable price, so I can see no reason to NOT declare that you are a racer, but I am just curious as to whether there is a difference.

Should regatta organizers require that everybody have damage insurance on their own boats as well as liability insurance? Would that make us less dependent upon good sportsmanship but have the side effect of resulting in more boat damage since everybody would know that everybody else has insurance, so no big deal if you put a hole in somebody's boat?

Mary,
I can answer this question quite well because I checked into insurance after I bought my boat.

First of all, my boat is covered under racing but I specified that. I believe that you do have to specify racing because if you dont and you injure someone while racing, your insurance does not have to cover it. I have liability on my boat policy because I do not own my own home, I rent. I think I have $100,000, I cant remember the amount for sure.

Second, my insurance does cover if I have a collision with another boat and it is damaged.

I am pretty good friends with our insurance agent asked why it was so low. He stated the reason is that when people look at sailboats, they arent recognized as "high performance". In the small cats, there is no motor and insurance companies classify sailing as sailing, typically the big slow boats so the risk of injury isn't that high. The number of claims each year compared to other insured items is very low, so they have no reason to raise premiums.

As for requiring racers to have insurance, I think its a good idea. I dont feel that would reduce sportsmanship, but maybe help it. You wont have the problems of people not owning up and paying and everyone getting mad at everyone else. Yeah it sucks when you get hit and have to spend the rest of the regatta on the beach, but each time someone hits you, they take a change of splitting that front nose right down the seam.

We dont require insurance, most of our member carry it, but at meetings and such we try and bring it up and encourage our members that dont have it to carry it.

Leah

Hello Leah-

I have State Farm as well but my agent is unaware of any racing policy available. Could you share the name of your State Farm agent and his phone number please? I would like to straighten this issue out with my agent.

thom

I carry State Farm. They insure for a value up to 10,000 on my boat and I have a liability of 100,000 that costs me about $175 a year. They require a homeowners or renters policy in order to write the insurance on the boat. In case of an accident the boat insurance takes care of it first and then the homeowners would also kick in beyond a the 100,000 limit. I also carry an umbrella policy over the homeowners that covers liablility up to 1 million. It's all relativily cheap though.

I've had one claim with insurance but was when I was with American National and they covered the claim quickly and easily.

As far as racing some policy's mention racing and some don't. Companies either cover racing or don't. You can't typically pay more to get racing coverage. You really just need to find a different company that will cover the racing also. I've found it hard to get coverage from companies that were not carrying my homeowners because it just isn't worth it to the company.

Mike Hill
H20 #791

i carry liability insurance of 100,000 and also coverage for my own boat. the policy costs about $130/year and does not require a homeowner's policy. although it is nice to have the insurance company pay for repairs to your own boat in the event of a crash (accident is such a passive word), the important coverage is really the liability insurance. boats are relatively inexpensive (less than $20,000). if someone is injured bucause of your fault, you could wind up with a huge judgement against you that will follow you for 20 years. try getting a home loan with a judgement on your credit report (or even a car).

i like knowing if i damage my boat or someone else's boat the insurance is there, but i really carry the policy in so i can buy another house some day. it sounds selfish. it is selfish, but the end effect is the same.

ask any attorney or insurance agent. insurance is for catastrophes, not little stuff.

Hello mary and Leah-

I have my policy in the annual payment due next month so heres what I have on my 2001 ARC22 with 2 sets of sails, one spin, and trailer below:

Hull $33900 Deductible $371 $287
Trailer $3200 "
Liability $300000 $55
Personal Effects $1000 $25
Medical payments $5000/per occurance $20
UNINSURED WATERCRAFT $10000 $10
Total $397

Last figure on the right is the premium cost.
I plan to add towing coverage as well from a different company.

This policy is not State Farm. Its with Zurich. I insured my F25c with State Farm but the agent is more interested in the commission tha the coverage.

thom

My prindle 18 and trailer is covered by Auto Club. I also have a 1,000,000 liability add-on, which at one time was required for us to keep our boats on the beach by the County of L.A.
It's about $70 per year.

An uninsured driver ran off the road years ago and landed on my boat which was parked on the adjacent sand, just below grade level. Auto Club paid the full claim, no problem.

Sheldon

My homeowner's policy (through StateFarm) actually has a clause that it covers an unpowered boat under 21' in length. Rarely do I find myself pleasantly surprised by an insurance company - but this was cool. I understand that this largely differs from state to state.

That's pretty cool, Jake!

Be advised, though, racing is typically excluded in ANY marine insurance policy. I have only heard of one insurer (who will remain nameless, but they all drive Explorers with their name on the side) that includes racing (for sailboats only) as part of their policy (with no extra premium). Most other insurers charge a nominal fee to add amature racing to the coverage...

Yeah - I will check on that...I should add to the previous post that it's not 'unpowered' but rather 'non-motorized'. My N6.0na has plenty of power!

Insurance for Windrider Rave Trimaran (Base boat retail cost: $10,000.)
USAA San Antonio, Texas: $367 p/yr.
Boat Storage: Orange County, FL (Orlando).
Boat Usage: Brevard County, FL (Cape Canaveral, Melbourne)
Boat Liability Limit: $15,000
Trailer: $2000 (Custom Trailer)
Deductible: $850
Legal Liability: each occurence: $300,000
Med. Payments each person: $5,000

A "Sport Pac" (Racing Coverage) is now included at no extra charge.
The Sport Pac covers: Spinnaker damage up to $1,000 limit ("We will pay for loss of or damage to a spinnaker during an official race.")
Loss of Personal Property on the boat (clothes, personal effects, sports equipment "...and may be extended to the personal property of your guests at your option."): $500 limit
Uninsured Boaters: $10,000 per occurence
Emergency Services: Up to $150 paid for mechanical labor up to one hour at place of breakdown, towing to nearest repair location, delivery of parts for the operation of boat or trailer (but not paying cost of parts; just the delivery charge)

To answer some of Mary's questions regarding watercraft insurance, here are some general items:

Typical Homeowner's policies DO cover watercraft and trailers (under the "Coverage C" section). Typically, the limit is around $1000 per occurrence for watercraft, their trailers, accessories and equipment.

In addition, there is some liability coverage. Section II part E (Liability) protects from leagal liability for bodily injury or property damage to others. Part F (or Coverage F) pays medical and other related expenses for members of the public injured through personal activities, without regard to your legal liability..

The only part you have to worry about is that it EXCLUDES (does not cover damages arising from) motorized watercraft (outboard or inboard-outboard boats) MORE than 50 hp, sailboats over 26 feet long, or sailboats powered by outboard motors over 25 hp.

Typical limits on this liability are around $100,000 per occurrence (Coverage E) and $1000 per person (coverage F). In Florida, there is a $10,000 cap on statutorily imposed vicarious parental liablity (for you legal eagles out there to explain...)

On to the next topic... Requiring proof of insurance for regattas... This is a pretty valid argument for two reasons: Most people who insure themselves are not the loose cannons out there. Requiring proof of insurance at regattas can help wean out the "yahoos" who might otherwise sour the experience for others. Also, regatta organizers are getting tired of being sued for stupid stuff, and purchasing insurance to cover themselves. To keep premiums down, most underwriters ask regatta organizers to require competitors to have their own insurance. As far as providing proof, your agent would be "happy" to provide you with a certificate of coverage that will indicate to regatta organizers and others that you have proper coverage.

People who don't have or need homeowner's policies (those who rent, or own townhomes, etc) will probably have to cough up some dough (usually less than $200/yr) for a marine policy. As mentioned before, both the marine policy AND the homeowner policy need to include racing for coverage to apply in regattas.

Only one insurer that I know of (they drive white trucks with the company name all over the side) includes racing in sailboat policies. The rest typically offer this endorsement for a nominal fee. If you want to keep the costs down, increase your deductible to $500 or $1000.

Another thing to ask is what type of policy it is. An example might help here. Let's say that a Russian Nuke Sub surfaces right on your I-20, destroying it...

-- If you have an "actual cash value" or ACV policy, the insurance company will reimburse you for the value of the boat (keep in mind that depreciation applies here, so you won't get what you paid). This will typcially NOT include your custom rudders, that cool Tactics compass on your spin pole, or any other add-ons.

-- If you have a "replacement cost" policy, the insurance company will either (a) give you the money to buy you a boat similar to the one you lost, or (b) drop off another boat to you (similar to the one you lost). Depreciation is NOT an issue on this type of policy. My particular policy (this type) will have a new I-20 sitting on the beach by the time I swim back to shore (well, not really, but close). This will also NOT include all the add-ons or mods.

-- If you have a "functional equivalent" policy, the insurance company will send you the money to buy a boat with similar function to the boat you lost. This is not very common for marine policies.

You can add any coverages you want (including bad weather, if you're that insurance crazy) as long as you have the dough... Personal umbrella policies are gaining popularity, as they pretty much fill up any gaps in the insurance program you may have already (well, no one covers intentional acts, illegal activity and gross negligence, but we're all not perfect)

THIS IS NOT LEGAL ADVICE, merely a summary of the vast and (yawn) exciting world of insurance...

Of course, these are GENERAL policy terms, and there may be other fine print in your individual policies, so it does pay to read them (despite the tedium).

PS to you land-lubbers- if you have a souped up, twin turbo Geo Metro with $50,000 in stereo equipment, and you total out the car IT'S NOT COVERED, unless you purchase additional coverage. A friend just found this out the hard way. I had to use the Nitrous just to calm him down...

So endith the lesson...

Homeowners are not the only ones that can benefit from a residential insurance policy. Most renter's policies will also cover your boat (and racing). There are slight differences between the coverage they offer and the coverage on the homeowner's policy, but it should be enough. If you rent and don't have a renter's insurance policy, well, that ain't too smart...

I'm insured (auto) with the company that drives the white explorers with their blue letters all down the side, yet they tell me they will not write a policy for a "high performance" catamaran (or any cat for that matter)

I'm a college student with a lot to lose if I hurt someone. Someone help me find insurance (State Farm wants an auto policy, which costs DOUBLE what mine does now)
I'm in FL btw.

Any help would be appriciated GREATLY!

Try Allstate. They have helped me in similiar stiuations

I have my renters with them, I'll givem a shot today.
Progressive was quoteing me insurance for a high performance catamaran (planning hull designed for speed)
I think they were thinking I had a 50' speedboat.

Last night they quoted me the correct coverages,
$530 a year. I thought that was ridiculous, seeing as I have aa spotless driving record, and my auto with them as well.
Being 25 apparently sucks in this reguard.

So far, boat US is the cheapest with $240 a year