Answer to your question on Older Boats.

[CandR@jbyrnemarine]

A while back we posted a thread relaying some important tips on insurance; in response we got numerous questions regarding insuring older boats.

Well, it’s not that it is hard it just takes more effort on you and your agent’s part. So we compiled some information for all of you older boat owners. There are many factors that go into insuring a boat let alone an older boat. One factor is the owner; typically there are two types, the first type loves classic boats and has the means and ability mechanically to care for them, the second is an owner who cannot afford a new boat and is looking for the biggest boat on the lowest budget. Normally when that happens they have old engines, bad wiring, and never ending problems.

Naturally the first owner would be a “good risk”, he is most likely a long time boat owner with no prior losses. But there is no way for an underwriter to know what category you fall into, so they look to these factors to help them decide.


1. Underwriters are looking for quality built boats. (Builders who have a reputation of constructing solid boats.)
2. The type of hull construction. (Is it wood, fiberglass, steel?)
For wood hulls, are all of the fastener’s new or in good condition? Or is there a plan to change them?
3. If aluminum or steel have a new and favorable audio gauge report as part of the survey.
4. Keeping detailed maintenance records including documentation of any major improvements to the boat or its systems also helps in the consideration of a risk.
5. Older boats need to have well maintained and functioning equipment. Are your fuel tanks in good condition; is there updated systems and rewiring? (Fires and machinery claims are most of the issues underwriters come across with older boats.)
6. Surveys should include an examination with the boat out of the water, while underway (sea trial), and engines should be surveyed when appropriate. Marine surveyors should be certified by either SAMS or NAMS.
7. How well does your agent know you and the vessel? It is an agent’s duty to relay the information, reputation and experience of the potential insured to the underwriter.

When speaking on some of the risks of insuring older boats, and their owners an underwriter of a major insurance carrier described a recently horrifying story he witnessed.

“ I also had one of these floating POS in the slip next to me one year, an old Trojan (not sportfish) with the bilge pump running all day, 120v electrical cord (not 30a shore power) hanging in the water, the dockmaster cut the lock off the door as we thought the boat was sinking. There was an open bilge with a hodgepodge of wire nuts, open bare electrical wires and an automotive battery charger plugged in connected to temporary installation. All of the stuffing boxes were squirting. Made me want to throw up. Now I know why I went thru two sets of zincs, I am lucky it didn’t blow up.”

This is just one of the many examples why it is so important to have all the necessary information when trying to insure your boat. The underwriter doesn’t know you and cannot see the boat. It is the agent’s job to represent the boat and owner in the most positive manner, to relay his story. We know all boat owners are not the same, and not every boat is the same, having this information, and taking these step will only help in making your older boat more attractive to underwriters.


Raquel S. Hightower
Marine Insurance
rhightower@jbyrneagency.com

[mymojo]

Great post. I bought an older boat 3 years ago - 1989 Cape Dory 33 Flybridge and went thru several hoops to get the insurance coverage and keep it in force. The carrier wanted the usual info, hull and engine surveys sea trial info. I also submitted a bunch of photos along with my own boating history (clean) boat speed (16-21 knots-they like them slow!) and a detailed receipt from the boatyard that did about 75% of the survey recommendations with a letter noting that the remaining items (non-hazardous) would be performed when the boat was hauled in the Fall.
So far so good. Over the first winter I got a cancellation notice because all the repairs were not performed yet. The carrier took the trouble to keep my file handy and insisted that the work get done before they would re-instate coverage. While it was a PIA at first - the work was scheduled to be done before the spring launch the yard just had'nt gotten to it yet - I can now appreciate that they took the trouble to keep tabs on the boats they underwrite. Hopefully they do the same for everyone!

[randall r]

i use the same company ,hagerty, that insures my 56 austin healey...my boats a 70...never had a claim on either but so far i like em

hey...nice to see you

[whowantstoknow]

thanks for the information. i will make a better informed decision when buying a boat and insurance.

[JD5652]

R-

Thanks for the update! One thing does intrigue me....I maintain my almost 20-year boat is the best mechanical condition possible and do a lot of the maintenance myself. I searched far and wide for competitive insurance quotes, but not one company asked me for maintenance records or proof of all the upgrades and repairs I had performed. Most often I did get asked for the last survey. However, I had performed over $50K worth of repairs and upgrades since the pre-purchase survey.

So.....is the maintenance and repair issue really low on the priority list?

[ShaneS]

A few months ago I bought a 1978 Egg 33. I shopped insurance companies. Charter Lakes in Chester MD was the best. They did require a survey,and the boat was well above average. I use the boat on the Chesapeake Bay, so she is insured for the bay, and tributaries. I have a 2% deductible, and it is $536 per year.

[CandR@jbyrnemarine]

R-

Thanks for the update! One thing does intrigue me....I maintain my almost 20-year boat is the best mechanical condition possible and do a lot of the maintenance myself. I searched far and wide for competitive insurance quotes, but not one company asked me for maintenance records or proof of all the upgrades and repairs I had performed. Most often I did get asked for the last survey. However, I had performed over $50K worth of repairs and upgrades since the pre-purchase survey.

So.....is the maintenance and repair issue really low on the priority list?

No….the maintenance and repair issue is not a low priority for the underwriter. Unfortunately, the underwriter will not quote just based on the maintenance records on an older vessel, most insurance companies underwriting requirements are a survey must be provided and should be no older than two years of age. This survey show’s the underwriter what condition the older vessel is in and would also show the $50K worth of repairs and upgrades you have did since the pre-purchase survey. What also help’s is photos of the critical areas which should be provided in the survey. That survey would be good for two years (for most companies) and if you decide to shop for a lower rate, that survey and any other maintenance repair records should be provided to the agent. With this in the hand of the agent, it’s our job to plead the case to the underwriter to review and sell you the client and the vessel to the underwriter.

Colleen Douglass
J. Byrne Marine Insurance Division

[Fritz]

While my boat is a '67 Hatteras, it is a total rebuild and insurance has not been a problem, but like you say it is a classic and kept as such.