Insurance questions

[MIKE IN lINO III]

I have quite a few toys and now I'm thinking about insuring them. I called my agent and talked to him about my fishing boat... he tells me that I shouldn't waste my money insuring it because I will never get anything for it if I have a claim. ??? First I thought it was odd that my insurance guy doesn't want my money but I've been with him for 30 plus years. He says that they value boats real low, mine happens to be a 1980 Lund Angler w/ 50 Merc and trailer. I know it is old but it is perfect condition. I don't want to not insure it but if I'm not going to get any money on a claim then what the use. I recently have been keeping it at the lake and not been able to secure it properly, I just hate to have someone steal it and I'm SOL!!

What do you guys think??

I have a meeting with him on Wednesday to talk about insuring the land and the four wheelers and other misc. items.

Mike

[18 inch Crappie]

Think about if you hit someone or it comes off your truck and hits a car or hurts someone, then what? you will loose your shorts. Insurance is not just for theft. Other things can happen out of your control and you want to be covered. Something to think about.

[Jeremy airjer W]

I have a simular boat, 81 lund mr pike. $56 a year! My state farm agent was more than happy to accomodate. You may want to price shop as many companies sublet this type of coverage and charge alot more. I already had state farm and as it turned out for me the were one of the better priced rates. Also I could of swore that she said it was required to have liability insurance on any boat. don't quote me on that but it really does make good sense to have some kind of coverage.

[Jarrod32]

I'm in the same boat (get it? same boat? heh heh heh) as airjer. I'm with State Farm...$56 or $57 per year. The main thing is liability...

Sometimes, depending on the size/value of the boat, you can be covered under your homeowners policy (that is where my old three-wheeler is covered...a specific rider under the homeowners policy). Check on that option...

Then we have an umbrella liability policy above and beyond our normal liability coverage on our cars, homeowners, boat, etc. It's a lot of liability coverage, and it is not very expensive. I don't want to sound like a commercial for State Farm...I'm sure that other insurance carriers have similar options...

[pengy]

Try "Foremost Insurance Co." They are a division of Farmers Ins. and specialize in the items you want to insure. And no, I have nothing to do with them. I just dumped my insurance company I had coverage on for my ATV (price was too high) and went with them. You can find their nearest agent by using their HSOforum.

[Fish Head]

I've been an insurance agent for over 20 years. I would agree with your agent that the boat itself isn't worth insuring for physical damage, but you could insure it if you are concerned about it. However you MUST have some liability coverage. If your agent didn't stress this, he is being negligent in my opinion. Often it's cheaper to endorse your homeowners policy to cover the liability than to take out a liability only insurance policy on the boat. Either way, it's very affordable.

Good luck and good fishing!

[MIKE IN lINO III]

Thanks guys, don't get me wrong, I know I need the insurance I was just puzzled at the lack of theft coverage on the boat. The wheelers should be ok because they are newer.

Mike

[Northlander]

I had some little as---les burn my garage down about 11 years ago. I had 2 boats and 2 cars in it. I did better on getting a fair deal (from State Farm) on my boats than I did on my cars. I would never not have insurance on anything you can drive faster than your riding lawnmower, not only for you but others that may get involved.

Like others have said its a cheap peace of mind.

[Ole1855]

Boat policies aren't that expensive and liability coverage is a huge issue in the event you ever run into someone on the water. I think it's a real bad idea to add the coverage onto you homeowners policy, number one, the outboard has to be 25hp or less to be covered on the homeowners and the max. you're going to get for a total loss is $1000.00. There are many other reasons that would take too long to go through here but a stand alone policy is your best bet, they are paid out on an Actual Cash Value, the same as an auto policy.

Ole

[gunflint]

I know that the insurance company that I use for guiding will not insure a boat that's over 20 years old. Maybe that's what the agent was thinking about.

[State Farm Man]

I'll agree with all of these posts. Insure the boat for the market value or Actual Cash Value that it is worth and definitely have liability on it. That way you have "peace of mind" in case someone does steal it or any other type of loss (hit a rock, wind, etc.). I also wouldn't suggest adding it to your homeowners policy. Usually your boat policy has a lower deductible and more importantly a seperate policy and deductible from your homeowners. Great point on the Umbrella policy. If you have any assets or plan on building some, buy the Personal Liability Umbrella Policy. Just my 1/2 cents worth!!!!

[Rost]

Isn't it illegal not to have liabilty on your boat?

I actually just put additional insurance (State Farm)to my boat. I bought a kicker and I added $3000 extra to cover the equipment and tackle inside. I pay about $14/ month.

State Farm Guy- I think my brother Jeremy has a policy with you. He said you're a good guy to work with!

[Bushwacker]

I am an insurance agent too and would strongly suggest that everyone has at least liability insurance on all of your toys. Every year we get a bunch of claims on toys from things you would never think of. There are companies out there that you can buy an "agreed value" policy on your boat. Say it only has a $1000 "book value", you can insure it for a reasonable amount like $2500, you will pay a little higher rate per $100, but it will give you piece of mind that if something happens you won't have to be completely without any compensation.

[Pherris]

I have insurance through Boats US or US Boats, my policy is set up for an agreed dollar amount of 35K for total loss. The premium is about $650 a year and will cover any damage to the boat even if I drive it into a rock. They do have an option for market value that is lower premium but you may want to check them out. Good Luck!

[magnumthunder]

WOW You mean your suppose to have insurance on a boat. Sounds like another must have legaized gambling scam! I dont even have $500 into my boat with trailer, motor, battery, sand blasting, camo paint job, seats, and lites. Would it be covered from a shotgun blast or the dog scratching my custom paint job? I suppose it has to be insured for all year too even if I use it 6 or 7 times a year. What next? Insure my dog incase it swims into someone decoys and breaks a decoy cord! What a joke! I guess I pay fine if I get caught. Magnum the uninsured boat owner!!

[Jeremy airjer W]

Magnum, I think you missed the point! Liability insurance is to cover whatever expenses that may result when you screw up. Accidents happen, no sense in losing everything you have when you have the option of insuring it for $5 a month. In your case it may already be covered in you homeowners policy. Mine would have been if it was 20 or 25 hp or less and less than 16 feet (Don't remember exactly what it was).

[river-rat4]

Insurance people, correct me if I am wrong. I live on the water and all of my boats are covered under my home owners insurance, as long as they are 60hp or less. (Amer Fam)

Thanks- RR4

[Ole1855]

river-rat,

It would be covered under personal property for a maximum of $1000.00 but only if the outboard is 25 hp or less. You can also add it to your homeowner's policy, for additional premium, with a larger motor.

One thing I would recommend is having a stand alone policy on your toys. There are several reasons for this, if you ever have a loss and make a claim with your boat on your homeowner's policy, that claim goes against your home policy, which would cause your policy to be surcharged. This means you're going to pay a higher rate on your home policy. If you have a stand alone policy and you make a claim, your homeowner's will not be surcharged. There are many other reason's for a stand alone but too many to type here.

Ole

[New Yankee]

RR4, take Ole's (and the rest of these good agents)advice and get the stand alone policies. Coverage is broader than what is availible from an endorsed HO policy, and as Ole said, the other reasons will take about an hour to explain, but it's simply the best way to insure your boats.

Off topic but touched on by the agents that frequent here is insuring your 4-wheelers. The liability is NOT covered by your HO policy off your lot.

When accidents happen with these toys they are usually pretty severe. Aside from the $$ to pay damages that a liability policy affords, often the greater value is the cost of defense. These costs alone (even if the damages claimed in an action are groundless) can run into six figures sometimes, and readily 5 figures.

[Surface Tension]

Someone correct me if I'm wrong. I don't believe you have to have any insurance on your boat although liability insurance is a good idea. I can see being required to carry insurance if you have a loan out.

[New Yankee]

ST, you're correct on both counts.

[Fish Head]

Liability is automatically covered on the homeowner’s policy WITHOUT any endorsement as long as it is under 25hp. You only have to endorse it if it is over 25hp. The liability coverage is not broader on a stand alone policy. The physical damage coverage is much broader on a stand alone policy. Having said this, there is still a good argument regarding loss surcharges. It's very inexpensive to have a stand alone policy too, but with many companies it’s about half the price on the homeowner’s policy with a $300,000 or $500,000 limit. If you have any decent assets, you must have an umbrella!

As far as having physical damage coverage- that is just a matter of a person’s own risk management assessment. My last boat sold for $3500 and I carried liability only on it. However if it was totaled in a claim, off the top of my head I would guess I would only have been paid $2000 had I had full coverage. Personally, I don't carry physical damage coverage on my lower priced items. But that doesn't mean its right for everyone. Many of my clients would die if the lost a $3500 item and had no insurance on it. Those people should carry physical damage and that must be on a stand alone policy.

Just my $.02

[State Farm Man]

Hey Rost, I do deal with your brother and quite a few of the Rost clan. Great people..great outdoorsmen!! I meet you on the river in Chamberlain two years ago when you were with your brother. If I remember right, you had a late night or early morning. I was with Hess or "Hesto" as we call him!

[Rost]

I used to do a lot of fishing with Buck when I lived in MN. I miss that guy.