From: jeffh@nonsuch.EBay.Sun.COM (Jeff Huntington)
Newsgroups: rec.boats
Subject: Insurance Survey
Keywords: Insurance, cost, companies
Date: 27 Jul 92 22:00:56 GMT
Reply-To: jeffh@nonsuch.EBay.Sun.COM
Distribution: world
Organization: Sun Microsystems, Inc.
NNTP-Posting-Host: nonsuch.ebay.sun.com

I want to thank those of you who took time to post an answer to my
insurance questions.   I agreed to post a summary if there was enough
non-net mail to make it worthwhile.  There was very little non-net mail,
but I am going to summarize what there was, and include some information
from my research.
 
In addition to the insurance companies mentioned in mail posted to the
net, one person reported having Allstate - no claims experience.  Another
person had been insured by a broker, who seemed to do his job (he
kept switching the insurance company to get the best rate).  However,
they still found BOAT-US to be about $50 cheaper.  They had a
surveyor recommend BOAT-US by saying that he could not recall a time
the BOAT-US did not pay, and pay fast.  Another person, who never had
a claim, felt that BOAT-US provided good service - they  do what they
say they will do, on time.  He had a feeling that Allstate's bad
reputation in the auto insurance field might also apply to their boat
insurance.
 
Now, for my own research findings.  In case any of you don't know, there
are three kinds of property insurance generally available.  (Maybe there
are more, but there are three that I am aware of.)  The first kind, which
is the good kind to have on your house, is not available for boats.  It
is called "Replacement Cost", and pays to replace the item.   If your
house burns down, they rebuild it - no matter what the construction costs
are.  The second kind, moving down the ladder, is called "Agreed Value".
With this kind of insurance, if you have a total loss, they pay you the
agreed value of the boat.  Incidentally, you can not pick an agreed value
greater than the purchase (or appraised) value of your boat.  The third
kind of insurance, again moving down the ladder, is "Cash Value" or
"Depreciated Value".  With this kind of policy, if you have a total loss
you get compensated based on the market value of your boat.  This kind of
insurance is very much liked auto insurance, and is the kind sold by
companies (so far as I can tell) who sell auto insurance.
 
Oh, I should state that with all of the above there is a deductible.
With "Agreed Value" policies, 1% is the common deductible.  With the
"Cash Value" policies, the deductible is a dollar amount, and can run
from $50 to $2500, depending on what you choose.  There are lots of
other rules about equipment, outboard motors, personal effects, etc.,
which I will not even attempt to get into.

Now for the price quotes:
 
  COMPANY                                          QUOTE
 
  AVEMCO                                          $1239.00
 
  Allstate                                         $460.00
 
  State Farm                                      $1028.00
 
  TransPak (an independent agent)                  $995.00
 
  Pettit-Morry (another independent)               $972.00
 
  BOAT-US                                          $729.00
 
 
One more thing I should mention.  Although the coverage (hull damage,
liability, and deductible) were kept as much the same as possible. the
coverage area varied from "30 miles outside mile rock" to "the entire
coast of the Western United States, and out 100 miles".  There was
no correlation between price and coverage area.  In fact, the cheapest
price had the largest coverage area.  A greater coverage area was
available from most of the companies, at an additional cost.  The rates
are based on my minimum coverage area (for this year).  For instance,
the BOAT-US policy is the one rated "30 miles outside mile rock",
which will be OK for me for the next year.  I asked them to quote on
extended coverage.  The cost will go to $859.00 if I extend the cruising
range to "Pacific coastal and inland waters tributary thereto of the U.S.
and Canada between Cape Scott, Vancouver Island and Point Banda, Mexico.
 
In summary, I would rather buy sails or anchors than I would insurance.
At least you can see what you are getting and test how they perform.
 
Hope someone finds this useful.
 
Jeff Huntington