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Boat insurance - big jump in premiums!

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Voyager
Master Marine Consultant

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USA
5231 Posts

Initially Posted - 02/21/2022 : 11:35:35

Hello all - it might be just me but it seems that this year my boat insurance premiums have increased a lot! Last year for liability plus modest replacement value of boat and contents l was somewhere in the mid $400s This year, with no increases in coverage or any claims on the policy, l saw an almost $80 jump. In round numbers that�s about 18%!
I know that inflation is moving up, but around 5-8%, not 18%.
Any suggestions or theories?

Bruce Ross
Passage ~ SR-FK ~ C25 #5032

Port Captain � Milford, CT

keats
Navigator

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USA
215 Posts

Response Posted - 02/21/2022 : 12:33:38

My Geico/BoatUS premium went down from $244 to $239 this year. This policy includes coverage on the trailer.

As I'm in an inland lake I assume the underwritten risk is lower than yours. Still, a decrease is a decrease.

I have:

$6,800 replacement value
$250 tow coverage
$1,500 trailer
$3,000 personal effects
$300,000 liability
$1,000 medical
$997,100 fuel/oil spill
$300,000 uninsured boater

Tim Keating
1985 C-25 TR/FK #4940
Midsummer
Lake Don Pedro, CA

islander
Master Marine Consultant

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USA
3992 Posts

Response Posted - 02/21/2022 : 14:54:36

I hear homeowners insurance is going up significantly. Rebuilding costs have gone through the roof.

Scott-"IMPULSE"87'C25/SR/WK/Din.#5688
Sailing out of Glen Cove,L.I Sound

Voyager
Master Marine Consultant

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USA
5231 Posts

Response Posted - 02/21/2022 : 16:58:02

Tim, I�m surprised that rates are going down. Amazing, but California doesn�t often have to worry about hurricanes. The east coast has been tormented by hurricanes and leftovers of hurricanes in the past several years with increasing severity. This can drive up rates pretty quickly.
Scott, you�re right. We had our house fire in 2019 and during the rebuild during COVID, costs have increased significantly. Thank the gods that we bought all our lumber before the price increases. Also, our home insurer has not raised our rates (yet)!

Bruce Ross
Passage ~ SR-FK ~ C25 #5032

Port Captain � Milford, CT

OLarryR
Master Marine Consultant

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USA
3367 Posts

Response Posted - 02/21/2022 : 21:43:27

My Geico/Boat US insurance went up from $208 to $221. That's for inland waterways/tributaries (Potomac River}.
Coverage:
Hull & Equip. $9800
Towing & Assist $250
Personal Effects. $500
Liability $300K
Medical - Each $1000
Fuel etc spills. $997.1K
Uninsured Boater $300K

Larry
'89 Robin's Nest#5820, Potomac River/Quantico, Va
http://catalina25.homestead.com/olarryr.html

Edited by - OLarryR on 02/21/2022 21:52:55

Voyager
Master Marine Consultant

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USA
5231 Posts

Response Posted - 02/23/2022 : 09:43:55

Wow Larry, that�s what I was used to paying. And you, being right in the east coast Hurricane bullseye I�m surprised that your rates are so low. While I�m not a GEICO fan due to previous issues with them, it�s tough to argue with the price.
I�ve written my check but haven�t mailed it yet, perhaps I�ll give my insurer a call and ask for a better price. As I said, with zero claims, it must be an idiot tax. I�d be an idiot not to contest it.

Bruce Ross
Passage ~ SR-FK ~ C25 #5032

Port Captain � Milford, CT

Voyager
Master Marine Consultant

Members Avatar

USA
5231 Posts

Response Posted - 02/23/2022 : 21:25:53

I called my insurance broker to express my displeasure and explained how members of my boating club (this forum) have similar boats of similar ages and have policies that cost between 50% and 65% of the proposed cost of my policy. The agent tried to quibble that different people have boats of different ages and sizes, but I explained again that the quotes cover boats of equal length, some of which are newer, but most are between 30 and 40 years old.
She finally �got it� and realized they were about to lose a customer, so she told me - give me a few hours and I�ll come back with a better quote.
A few hours later she identified a quote that was miraculously $200 less costly with only minor differences in coverage: 45 miles versus 200 mile limit, no hurricane short haul coverage ($1000 for a haul prior to a named tropical storm), same deductible and forgiveness for no claims after 3 years.
While I�m delighted that she came back with a satisfactory response, they lost my trust by jacking up the price. Therefore, I�m considering going direct without a broker.
My policy expires at the end of March, so I have some time to decide.

Bruce Ross
Passage ~ SR-FK ~ C25 #5032

Port Captain � Milford, CT

OLarryR
Master Marine Consultant

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USA
3367 Posts

Response Posted - 02/23/2022 : 22:43:42

Bruce,

Great that you were able to negotiate a less expensive rate !

My insurance is with Boat US and right now, their insurance is via Geico. Several years ago or more, Boat US had a different insurance carrier.

My Boat US insurance rate is probably lower than if my boat was located closer to or on the East Coast/Atlantic Ocean. My boat is located on the upper Potomac River around 80 miles NW from where the Potomac River enters the Chesapeake Bay. In the past 16-17 years, only one hurricane (~ 5-10 years ago) came somewhat close Ito our area - The marina/boats had no visible issues.

Interesting but a non event occurred in 2005, when I purchased my boat. I decided to keep the boat at the same marina and same finger slip as previous owner. Setting up the slip rental with the Mgr, the Mgr asked if I had boat insurance yet. I told him I was going with Boat US but that Boat US wanted to wait a few days before issuing the policy because a hurricane was tracking up the east coast. The Mgr told me I had to remove my boat from the marina until I get the insurance. So, I was considering what to do......and just told him okay.. and I started to leave the office......figuring that my boat already was in the slip where it had been for years. I would just come back a few days later. The Mgr probably figured that out as well and stopped me and offered to call Boat US to see if the issue could be resolved. To my surprise, Boat US indicated they would now insure me (I believe the track f the storm had already changed) - Boat US just needed a photo of my boat. The Mgr forwarded the photo and then I finalized the insurance over the phone. Good thing issue was resolved.....I do not know what I would have done....I certainly wasn't going to anchor my boat in the middle of the river and hang out there till the storm passed.

Larry
'89 Robin's Nest#5820, Potomac River/Quantico, Va
http://catalina25.homestead.com/olarryr.html

bigelowp
Master Marine Consultant

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USA
1736 Posts

Response Posted - 02/25/2022 : 11:54:51

Bruce:

With the drastically increasing number of people buying boats, especially power boats (no dealer around here has any inventory and are taking orders for 2023) I bet the "risk" and feared, if not real, increase in claims has impacted boat insurance pricing. That said, my homeowners insurance went way up this past year despite being with the same carrier for decades with no claims. I asked my broker to shop it around and landed with a quality firm at much lower annual premium. I have not yet received my boat insurance renewal from Progressive. Hopefully no major increase, but if so, then I will shop it to other carriers as well.

Early in my career -- the high inflation late 70's and early 80's -- I was "Pricing Administrator" for a large electronics company. Management demanded four stiff price increases per year during those days, and not just because our costs were increasing, but because "the market won't be surprised or mind they will just accept it . . . " That just do it mentality could be happening now that inflation is again rearing its head!

Peter Bigelow
C-25 TR/FK #2092 Limerick
Rowayton, Ct
Port Captain: Rowayton/Norwalk/Darien CT

Edited by - bigelowp on 02/25/2022 11:56:20

Voyager
Master Marine Consultant

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USA
5231 Posts

Response Posted - 02/25/2022 : 17:52:33

Peter, I�ve heard that boating incidents were way up in 2020 and 2021, so it�s not surprising that would drive higher underwriting rates. Somehow, it�s always the outliers that drive a trend. Us long-time boaters are not contributing to the greater number of claims, but we get dinged anyway.
I�ve also heard the theory of �raise prices when you can�, as consumers are becoming accustomed to price rises in connection with scarcer goods. It�s a pile-on mentality that�s doomed to pushbacks. The service economy, however, is not seeing the same pricing pressure as goods since they aren�t sitting on a ship out in the Pacific or Atlantic oceans.
Consumers are not stupid and will hold out for discounts. I�m glad I did.

Bruce Ross
Passage ~ SR-FK ~ C25 #5032

Port Captain � Milford, CT

Voyager
Master Marine Consultant

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USA
5231 Posts

Response Posted - 03/17/2022 : 07:15:28

Happy St Paddy�s Day all. May you have the luck of the leprechauns!
So I finally went with Progressive and I�ll see how I like it. One issue is that they want you to set up an online account, they don�t like to do US Mail or paper. I am waiting them out to receive their mailing.
In the course of my inquiries, I spoke with several insurance agents and found that boats under 26 ft and around 40 years old may be better insured under a homeowners insurance policy. If you�re concerned primarily about liability and contents, then it�s a no brainer, go with homeowners. However if you want collision, loss of use, salvage, towing, then a conventional boat insurance policy may be more suitable.
Good to know the options.

Bruce Ross
Passage ~ SR-FK ~ C25 #5032

Port Captain � Milford, CT

bigelowp
Master Marine Consultant

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USA
1736 Posts

Response Posted - 03/17/2022 : 12:54:25

Erin-go-bragh! Boat insurance is interesting. Some clubs/marinas will demand a specific boat owners insurance policy, while some places just don't care. One surprise I had last year was when my adult son borrowed my 19 ft. power boat for a month, keeping it at a different marina but in the same state, that marina wanted the policy amended to list the names of ALL people who were allowed to operate the boat!! Adding son nearly doubled the insurance cost. As soon as he returned the boat I removed his name and told him if he wants to use the boat again, find a different marina!!

Peter Bigelow
C-25 TR/FK #2092 Limerick
Rowayton, Ct
Port Captain: Rowayton/Norwalk/Darien CT

Stinkpotter
Master Marine Consultant

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Djibouti
9013 Posts

Response Posted - 03/18/2022 : 19:51:00

I tend to be influenced by people in the independent agency industry, personal observations, and first-person stories of claims service, and will pay a few hundred a year more based on I've seen and heard. Some closely observed situations have shown me how devastating they can be, and how some insurers will jump in, take over, and virtually throw out the policy fine print.

It's not as important for a boat, although I also save a little in "bundling"... My condo, car, and "yacht" are covered by Chubb (as long as we're mentioning insurers), and if anything happens to any of them, I have pretty good reason to expect I will be made whole with top-notch, proactive attention. With a home, it can actually be life-restoring (as I've witnessed up close)--with a boat, I simply expect excellent attention, and know they have substantial marine experience as a significant coverer of major, classic yachts. (Knowing what to do in Admiralty Court is one hopefully remote example.) But they are not the least expensive. I have no connection to Chubb except as a policy-holder. I was pointed there by a retired, ex-owner of an independent agency and, as I said, some very personal observations. If this is too much of a commercial, I'll remove it. But I don't think cost is the only criterion, and up-ticks in premiums have to be expected given what we've all been watching.

Dave Bristle
Association "Port Captain" for Mystic/Stonington CT
PO of 1985 C-25 SR/FK #5032 Passage, USCG "sixpack" (expired),
Now on Eastern 27 $+!nkp*+ Sarge

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