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Boat Insurance question

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zeil
Master Marine Consultant

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Canada
1328 Posts

Initially Posted - 04/04/2013 : 17:14:01

A large west coast marina bordering Canada is demanding boat-owners to amend and include the following in their insurance policy as part of slip assignments...

does yours...?
is your boat insurance included with your house insurance...?
in order to re-new or obtain a new policy does your boat need to be surveyed...?
does your annual cost of insuring your boat cost range in the area of $200 to $500 or more...?
which company would you recommend...?

Moorage Contract

Contract | Rules & Regulations | Attachments

Amendment to Insurance:

A. Insurance Requirements and Amount of Coverage
Throughout the term of this Agreement, Customer shall at all times have in full force and effect, and at its sole expense, third-party liability insurance, including coverage for bodily injury and property damage, in a form reasonably satisfactory to Marina, and with insurers reasonably satisfactory to Marina, providing at least the following coverage's, with the following minimum coverage limits, unless the Marina at its sole discretion allows lower coverage limits:
1. Combined bodily injury and property damage liability coverage (for example, Protection & Indemnity), with liability limits no less thean $1,000,000 per occurrence, with no less than a $1,000,000 policy aggregate, and no single event or aggregate deductible exceeding $2,500;
2. Pollution Liability coverage at no less than $1,000,000 per occurrence, or as included in above, and no single event or aggregate deductible greater than $2,500;
3. Hull & Machinery Insurance, including personal property coverage, in the amount of at least 50% of vessel replacement value;
4. Wreck removal coverage to be included in one or more of the above coverage's.
Each liability policy shall be primary and without right of contribution from any other available insurance, including any insurance carried by Marina, and shall expressly provide that all of the provisions thereof, except the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured.
B. Additional Terms and Conditions of Insurance
When the insurer's terms and conditions allow, each policy obtained by Customer under this Agreement shall; name the Marina as an additional insured with a full waiver of rights of subrogation assertable against Marina; insure the interest of Marina regardless of any breach of violation by Customer of any warranties, recommendations, requirement, declarations, geographic limits or other conditions contained in such policies; contain an agreement by the insurer entitling Marina to at least 30 days prior written notice of any lapse, reduction in coverage, or cancellation of the insurance coverage by the insurer or the Customer, for any reason, regardless of whether the policy lapse was voluntary or involuntary. It is further agreed that no alteration whatsoever in any such policy, which would have the effect of reducing the coverage required pursuant to this Agreement, shall be made except after such written notice is provided to Marina.

Henk & Johanna
"Floating", a few off your "barnacles".
"Someday Lady" '95 C250WB #151 ('03 - 2016)
"Sea ya" 30ft Bayliner (04-2018 - 09-2018)
"Mariah" '96 C250WB #191 (05-2019 - 15-05-2023)
"Lady J" '00 C250WK #499 (05-2021 - 09-2022)

Edited by - on

dmpilc
Master Marine Consultant

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USA
4593 Posts

Response Posted - 04/04/2013 : 17:21:09

I had separate inland marine policies for both of our boats with Travelers, who handles our homeowners and auto insurance. If you don't like that idea, check with Boat US. They came very close to my premiums. My C-25 policy was under $200 per year, but premiums will vary with coverage specifics, such as replacement cost or stated value.

Edited by - on

britinusa
Web Editor

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USA
5404 Posts

Response Posted - 04/04/2013 : 17:53:04

Sounds to me like they are working towards eliminating the small boat owner.

Paul

Edited by - on

Stinkpotter
Master Marine Consultant

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Djibouti
9089 Posts

Response Posted - 04/04/2013 : 18:18:33

I have coverage for my boat from the same company as my home and car so that all three are under an "umbrella" liability policy that easily covers that marina's requirement. (I'm no longer in a marina except for winter storage, so can't report a comparison.)

Your Part B is essentially like the terms imposed for mortgages, and if I owned a marina, I could see why I'd want those stipulations. (It's interesting that they allow your insurer to opt out, in which case you're OK.)

I suspect that these new requirements are the result of:

- recent marina fires caused by individual boats (at least in the US)...

- more complex electrical systems including A/C, heat, propane, etc. in greater numbers of larger boats...

- rapidly increasing insurance costs for marinas (which I can identify with based on my condo association's experiences with our dock), and...

- our more litigious society.

I needed a survey to insure my (then) 15-year-old C-25 when I bought her, but not to renew thereafter. (That was easy--I had her surveyed for my purchase.) My $+!nkp*+, which I had built, didn't need a survey for insurance, for obvious reasons.

Edited by - Stinkpotter on 04/04/2013 18:20:53

Voyager
Master Marine Consultant

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USA
5430 Posts

Response Posted - 04/04/2013 : 19:07:31

Dave
When I first insured Passage I did not get a survey since in year 1 the agreed value was $9,999, one $ short of the minimum amount for which a survey was required. Year 2, I increased the amount and over time have increased boat and contents to $15,000. Since joining Milford marina I've had to acquire $1,000,000 liability. While my premium would naturally rise I've take a several steps to cut my rate:
1. I've joined the US Power Squadron and have reached an advanced grade - buku discount
2. I receive a Vessel Safety Check each year.
3. I have a coastal cruising endorsement. This means I'm always inside COLREGS line for inland waterways (Long Island Sound), or within 12 miles of shore.
4. My boat spends at least 4 months of the year out on the hard.
It's still robbery tho

Edited by - on

hewebb
Admiral

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USA
761 Posts

Response Posted - 04/05/2013 : 05:16:53

I have united Marine Underwriters. 8500.00 on Boat & 2000.00 on trailer
for just under $300.00. Good for 150 miles off shore. Zero time on the hard.

Edited by - on

Dave5041
Former Mainsheet Editor

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USA
3758 Posts

Response Posted - 04/05/2013 : 08:44:28

My BoatUS coverage for US/Canada coastal/inland waters:

Boat & Boating Equipment : $7,500.00
Investigative Services : 5% of the above
*Boat & Boating Equipment Deductible : $250.00
Boating Liability per Accident : $300,000.00
Fuel Spill Liability : $854,400.00
Boat Trailer : $2,000.00
Boat Trailer Deductible : $50.00
Uninsured Boater per Accident: $300,000.00
Medical Payments per person : $1,000.00
Personal Effects per Accident : $0.00
Current Annual Premium : $225.00

They would be happy to give you a quote for you specific requirements to compare with other insurers. I did not need a survey for the agreed value, but an insurance survey is fast, inexpensive, and only necessary for the initial policy. It would probably be easier to call than submitting online since you have exact requirements.

Edited by - Dave5041 on 04/05/2013 08:55:43

jerlim
Master Marine Consultant

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USA
1484 Posts

Response Posted - 04/05/2013 : 12:23:00

Our yard does not require any specific coverage.

Edited by - on

awetmore
Master Marine Consultant

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USA
1144 Posts

Response Posted - 04/05/2013 : 15:11:56

The city owned marina that I'm in does require $300k of liability.

The one where I kept my Catalina 25 didn't require coverage. That was annoying when one of my slip-mates hit me while docking and I had to go through him (instead of insurance) to get the boat repaired. It took a lot of my personal time.

Edited by - on

pastmember
Master Marine Consultant

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2402 Posts

Response Posted - 04/05/2013 : 19:35:47

$100.000 here

Edited by - on

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