Insuring a boat?

Every time I drag my jetboat down the highway, my rear end is gnawing the truck seat, especially when someone starts tailgating. I'm very worried one of these pickle brain mental midgets driving on the demolition derby known as SC highways is going to total my boat, and I'm going to have a psychotic break when that happens. I'm a careful driver, but everyone else around me is an idiot, and I know it's just a matter of time before something bad happens.

Had a real close call yesterday coming back from the Santee, when some idiot 2 cars ahead of me slammed on brakes, nearly caused me to rear-end the car in front of me, (then the idiot almost caused a pileup in the opposite lane while making a U-turn.....man, I wish I had a blue light, badge and ticket book, I would have wrote that SOB up for reckless driving....probably taken him to jail, even) I was less worried about hitting the vehicle in front of me, but more worried about someone plowing into my boat.....because I don't think the boat is covered.

And even if my vehicle insurance DOES cover the boat while it's hooked to my truck....let's face it, how much is the insurance company going to give me for a 1997 DuraCraft....regardless of the fact that I've put over $10K into it? I'd be lucky to get the scrap price of the hull.

So, my question is....how do you insure a boat that is not a factory built boat, but one that has been heavily modified? Would an insurance company even cover it? I know the first thing they're going to do is look at the HP rating of a 1997 DuraCraft 1648SV and see that it's rated for a 50HP....and I have a 160HP MR-1 jetboat motor in there....that's probably an automatic disqualifier, because the engine exceeds the HP rating. But I don't need insurance to cover it while it's on the water....I know how to run a boat, I'm not going to do anything to hazard my vessel, my passengers, or myself. But on the road is a totally different story.

If I could just insure it for about $10K.....then at least if some jackass plows into the back of it and totals it, I would have enough to cover the cost of having to buy a new hull, new pump, and then all the labor to modify the hull and install the engine.

Any advice would be greatly appreciated!

well, 10K part i don't think would be a problem, most insurance companies can offer 'agreed value' coverage, where the two of you specify in advance how much you are covered for, not how much the vehicle is worth per se.

the highly modified and higher than stock recommended horsepower might be a different story though. let us know what you find out.

acabtp said:

the highly modified and higher than stock recommended horsepower might be a different story though. let us know what you find out.

Click to expand...

I think that in itself is going to be a major issue. Like I said, I don't need coverage for when it's on the water....I just need it insured getting to and from the water.

Years ago, I had an agent tell me that it's possible to insure a toothpick if the owner wanted to pay the premiums. I'm sure there's a way to insure your boat too. I'd just ask your agent. I'm betting they will be able to help and at the least, give you advice on how to get coverage if they can't offer it.

Might want to check with an insurance broker.....they seem to have more exposure to insuring the "unusual".

call and tell them what it is, tell them its worth 10k and see if they will give replacement value. I have mine insured for 7500 with gear, I need to raise it now. As my boat alone is over 8k to replace.

Any suggestions as far as which insurance agencies to try? Thanks again.

You can get separate writers in your home owners or vehicle insurance. I did on my home owners for my guns and archery equipment in case of fire or if stolen. I am sure one could do it with your boat also.

PSG-1 said:

Any suggestions as far as which insurance agencies to try? Thanks again.

Click to expand...

I was told by a boat dealer to stay away from State Farm. He said the best, (as far as handling claims) was American Family. So...that's who I have my policy through. I have NOT had to make any claims though so all I've done so far is pay my premium.

I did however have a policy on my first boat with State Farm that I moved to American Family when he told me this. My premium was very much reduced for the same coverage. No idea why.

You also say you don't need "on the water" coverage. I thought about this when I got my current boat, its old, not worth much but accidents happen. You don't have to be doing anything that will endanger another person for them to get hurt or die. Consider this, I have full coverage on my boat for $100 a year thru Geico, same ins for my home and car. Peace of mind for 28 cents a day.
Tim

Mine is thru Geico as well, but they pass it off to a partner company. its about 200.00 per yr I think for full coverage.

earl60446 said:

You also say you don't need "on the water" coverage. I thought about this when I got my current boat, its old, not worth much but accidents happen. You don't have to be doing anything that will endanger another person for them to get hurt or die. Consider this, I have full coverage on my boat for $100 a year thru Geico, same ins for my home and car. Peace of mind for 28 cents a day.
Tim

Click to expand...

you can be the safest boater on the water,but when you're surrounded by idiots,anything can happen. or you can just [-o<

I have Progressive and could not be happier. On my last boat we had an agreed value and after I smashed it up they came a took a look at it and totalled it and I had a check in 2 days after the adjuster came out. On my new boat I have $12500 coverage with boat, motor, tackle, ect and it is $21 and some change each month. My insurance guy is the best and if you would like I can give you his name and number. He made a big stink to get uninsured boater coverage as well just in case some idiot runs your boat over on the water. Good luck.

I checked out Geico online, entered the info, including boat model, and the HP of the engine.....to insure the boat for $15K will only cost about $250 per year, and that includes insurance on the trailer, as well as roadside and on-the-water towing.

And this policy gives the 'agreed value' on the boat, not a depreciated value, at least from what I understand. (Can someone clarify this for me?)

To me, this seems like a VERY fair deal, and it also seems like a no-brainer.....like I said, my vehicle has full coverage, and it may cover the boat while it's hooked to the truck, but that policy is probably going to give me next to nothing if the boat is totaled. Insuring the boat itself is the best course of action, I think.

With that said, I'll be insuring my boat this week. =D>

I work for one of the companies mentioned above and can say that insurance for boats can get a little overwhelming since there are many options available. Some of the very basic boats may be covered under your homeowners policy. When driving down the road, your boat/trailer is most likely covered for liability (not physical damage) under your auto policy. For the most comprehensive coverage available, there are several insurers who offer detailed boat insurance, many of the big companies are reputable and will try to take good care of you.

There are generally 3 ways to insure your boat:actual cash value, agreed value, and replacement cost. Each option has its benefits. Actual cash value is generally the cheapest, but may not be good if you have a customized boat. Agreed value is good for placing a dollar amount on what your boat is worth. But, you need to make sure your value is accurate and you can prove the value after a loss. Replacement cost is great, albeit a little pricy, and only available within the first couple of years after being purchased new.

As with anything insurance, be knowledgeable, and you have to make the best decision for you and what you are comfortable with. When in doubt, call your agent or insurance company and not just some shmoe on the Internet, myself included.

Thanks for the info, I appreciate it!

OK, I got in touch with Geico, and gave them all the info, and told them I want to insure the boat for $15K.

Everything is approved, but, the only problem, since it's a 15 year old boat, and since it's modified with an inboard, before the underwriters will cover it, I have to have a marine surveyor come and inspect the boat.

I'm guessing they just want to know that everything is put together correctly, with the correct materials and procedures, i.e., no bare wires wrapped with duct tape, no garden hoses used where fuel hoses should be used, no romex wiring where there should be marine wiring, etc.

Has anyone else dealt with this process? If so, was it basically what I outlined above?