Insurance costs double for Lasers (and small dinghies)
Michael McGoldrick
I have just received my insurance bill for our
family's Laser One ( a 14 foot dinghy). The cost
of insuring this unpowered dinghy has doubled
since last year.
Our Laser has been insured through the Skipper's
Plan with the Elite Insurance Company. I am
wondering if anyone else has noticed a steep
increase in their insurance rates for their
Laser (or other small unpowered dinghies)?
--
Michael McGoldrick
Ottawa, Ontario, Canada
e-mail: mcs...@magma.ca
webmaster: http://sailquest.com
William R. Watt
will not double. you might want to start calling around now to see if you
can get better rates. insurance companies have been hit by low interest
rates and by lower prices for shares of companies. insurance companies
make their money investing the premiums they receive from policy holders.
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bowgus
"Michael McGoldrick" <mcs...@magma.ca> wrote in message
news:djSdndEVz_9...@magma.ca...
bowgus
"bowgus" <Bow...@rogers.com> wrote in message
news:rqIka.66815$az1....@news01.bloor.is.net.cable.rogers.com...
Wim
Why did the rates go up!
Maybe his ins. co is paying off the twin-towers and recouping the bad
investments it made?
--
c ya Wim
www.cruising.ca/thousand/f-index.html
"bowgus" <Bow...@rogers.com> wrote in message
news:rqIka.66815$az1....@news01.bloor.is.net.cable.rogers.com...
: Out of curiosity, why would one insure a 14' Laser? Thanks
: >
:
:
Michael McGoldrick
> Out of curiosity, why would one insure a 14' Laser? Thanks
Someone asked me the same type question via e-mail.
Here's how I answered this person:
------------------------------------------------
You're right, a lot of people don't get insurance for
their unpowered dinghies. I only got insurance for our
Laser just to be safe (mainly for liability).
Even insurance agents seem to realize that dinghy
insurance is not much of a priority for most sailors,
and as a result, they are quick to point out that
many clubs *require* their members maintain insurance
on all boats.
Nevertheless, when the weather gets nasty, there
exists the possibility that you could seriously
injury someone (with even a Laser). There was
recently an incident where a Laser capsized and
its mast came down on the head of someone on
a nearby Laser. Apparently, there was a settlement
worth over a $100,000.
If you do buy your sailboat, check to see if
it can be included on your homeowners' policy
(but this kind of coverage is never as good
as a dedicated marine insurance policy).
------------------------------------------------
Kent Hunter-Duvar
size/horsepower are automatically covered under many homeowners policies. I was
told this when I bought a 23 footer (which was larger than the limit), when I
asked about coverage for the inflateable dinghy the we bought the second year.
Broker assured me it was covered under the basic homeowners policy, without any
rider, etc. The 23 was covered under a rider, ALL perils, quite a low
deductable, 2 million liability with an agreed value of $9K including contents.
When we upgraded to a 26', we had to get a "marine" policy, named perils, higher
deductable, exclusion on the sails. How the heck is that better?
Kent
William R. Watt
may require a survey.
odd that dingy racers aren't licenced. some clubs require passing a
competence test.
are there discounts for Power Squadron certification?
Michael McGoldrick
Marine insurance policies allow people to sign "hold
harmless" agreements, something which is necessary
if you want to keep a boat at most clubs and marinas.
Moreover, most marine insurance policies will cover
the costs of "wreck removal", emergency towing, etc.
Several years ago I had to do some research on the
subject, and I compared a few homeowners' policies
and marine insurance policies (including the fine
print). I found that marine insurance generally
provided better coverage (and sometimes
significantly better coverage).
The insurance industry has also undergone changes
during the past decade. If my observations are
correct, the scope of what is usually covered in
homeowners' packages has narrowed over the years.
(I suspect the same is probably true of marine
insurance - as the recreational fleets grows
older, there will be more claims, and insurance
companies will fine tune their policies.)
For general information purposes, here are a
few links about marine insurance:
http://www.aon.ca/english/ars/personal/yacht/
http://www.boatins4u.com/insurance.html
http://www.mitchellsandham.com/chubbyacht.htm
http://www.skippersplan.com/faqs.html
--
Michael McGoldrick
Ottawa, Ontario, Canada
e-mail: mcs...@magma.ca
webmaster: http://sailquest.com
bowgus
size/power $2 million liability, at up to something like $1000 replacement.
So as a homeowner, I would not be looking for laser insurance ... sorry ...
forgot that not everyone is a homeowner.
"Kent Hunter-Duvar" <k...@globallaser.ondotca> wrote in message
news:v9u69v493bigsnq00...@4ax.com...
Roamer
some paint, the rascal) I asked my insurance agent about insuring my 14'
Flying Junior. After consulting our policy my agent was able to confirm
that our homeowner's policy covered my boat as well. I inquired about
additional insurance, the merits/disadvantages, etc, and he said that if I
really wanted to, he could pursue it further to determine rates, but would
also require a lot more information about the boat. Having bought it second
hand, (after it had passed through a number of other 'hands' I suspect) I
don't have all the information I would need (including date of manufacture
and builder, among other things) so I have to be content with the
homeowner's policy.
"Kent Hunter-Duvar" <k...@globallaser.ondotca> wrote in message
news:v9u69v493bigsnq00...@4ax.com...
Mike McEvoy
homeowners policy will be adequate for liability and minor replacement of
damage. I think that you'll also find that it will specifically not cover
you while racing.
There seems to be a sentiment that because its a dinghy its not worth much
and so doesn't need coverage. I broke my mast on the Fireball and the
replacement mast with a negotiated discount will be in the $1600 range. If
the boat were completely written off for some reason the replacement value
would be upwards of $16000. Even a new Laser is going to run somewhere
around $8000. These are amounts that I personally don't care to self
insure. The policy on the Fireball costs me about $180/year and there are
othere in the Fleet that have obtained coverage at similar or slightly lower
rates.
Its a challenge to explain to a regular agent what you're looking to insure
(damn near impossible) and only a little bit better with the so called
marine specialists who can't seem to get it though their heads that there
are expensive boats out there that don't have an engine, galley, head and
require a survey!
Finally its a requirement of the club I'm at (and likely most if not all)
that you insure for at least liability. If your uninsured boat falls over
onto the $20,000 5o5 beside it and punches a hole through a composite hull
you'll likely wish you had it!
--
Mike McEvoy
Fireball CAN 13890
Catalina 30 #860
See the Fireball home page at http://www.lo0.com/fireball/
or Visit the message board
http://members.boardhost.com/fireball/
"Roamer" <lre...@nospam.hotmail.com> wrote in message
news:4mLla.241$b67.1...@read2.cgocable.net...
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Steven Slaby
> around $8000. These are amounts that I personally don't care to self
> insure. The policy on the Fireball costs me about $180/year and there are
> othere in the Fleet that have obtained coverage at similar or slightly lower
> rates.
Just curious; is your insurance for replacement value (i.e. new boat) or
for a specific amount ?
Thanks,
Steve.
--
----------------------------------------------
Ottawa Windsurfing http://ottawawindsurfing.ca
Mike McEvoy
equipped used boat
--
Mike McEvoy
Fireball CAN 13890
Catalina 30 #860
See the Fireball home page at http://www.lo0.com/fireball/
or Visit the message board
http://members.boardhost.com/fireball/
"Steven Slaby" <an...@FreeNet.Carleton.CA> wrote in message
news:b7bic4$ch9$1...@freenet9.carleton.ca...
Kent Hunter-Duvar
saildrive. First there was the concern with the gas tank. Duh, it's a diesel.
Then the following conversation.
(broker) What would be the value of the engine?
(me) It's part of the boat.
(broker) But the insurance company need the value of the engine alone.
(me) Why?
(broker) Theft.
(me) It's bolted through a hole in the bottom, it's be easier to steal the whole
boat. I've never been asked for the value of my car's engine, which could also
be stolen.
(broker) The company insists they need the value of the engine.
(me) New cost or current value?
(broker) Resale and replacement..
(me) Resale $???.?? No idea. You'd have to purchase a new engine bed as that's
glassed to the hull, only way to remove the bed would be a chainsaw. Then you'd
need new membrane (manual specifies replacing it if the engine is
removed/re-installed). So with the expense of those parts, who'd cut a hole in
the bottom of their boat and install a 15 year old diesel, so resale value is
probably nil. . Replacement cost for a new one would probably be in the $6,000
to $7,000 range.
(broker) And how many horsepower was that?
(me) 8HP
(broker) That sounds out of line for an 8HP engine.
(me) IT IS NOT AN 8HP OUTBOARD!!!!! IT'S AN 8HP INBOARD DIESEL!!!!!
This broker just did not get it. Partly because it was Sail. Endless concern
with it's horsepower, top speed, number of seats? I ended up with a different
insurance broker, who with very little difficulty and no really stupid
questions, arranged a suitable policy.