Of all the tasks associated with this purchase insurance was the easiest. It was easy because I'm a registered insurance broker who has specialized in yacht insurance for over 20 years. Here are a few tips for insuring your new boat so it goes just as smoothly for you.
Who do you call. The insurance broker who handles your home and auto insurance has served you well but he/she is not your best option for the boat. As a boat insurance specialist I have markets, programs and rates that other insurance brokers cannot access. If you ever have a claim it also helps to have an insurance broker who knows boats in your corner acting as an advocate. No matter where you are in Canada your best start is calling me or one of my brokers at 1-800-661-7211. Shameless self-promotion but it is good advice all the same. If you don't call me then make sure you deal with an insurance broker who focuses on marine insurance.
When to consider insurance. The minute your thoughts turn to "How am I going to pay for this boat" the next thought should be "How do I insure this asset." A good yacht broker may prod you along the way about insurance and if you are financing the purchase then insurance will be mandatory to release funds. The sooner you call me the better.
What kind of coverage do I need. For a new boat don't settle for anything other than all risk, agreed value coverage. There are less expensive options but if you have a claim in the next 10 years you will pay more in depreciation charges than you will save in premium over that time. For boats over a certain age you may not be able to buy agreed value coverage but it is worth asking.
When to start coverage. On the day you pay for the boat it should be insured in your name. When money changes hands the previous owner's insurance or the dealers floor plan policy will no longer cover the boat you bought. Don't make the mistake of assuming the previous owner's policy will protect you until you take possession. Money is the trigger, not possession of the boat. If you purchase a new boat the dealer's insurance may provide coverage until you take possession but consider this scenario. Fire. A fire at the dealer or yacht broker's yard could destroy your boat and many others. If the dealer then declares Bankruptcy, which is not unheard of in that scenario, you could find yourself way down the list of unsecured creditors with no boat and no way to recover the money you paid. A policy in your name protects you from that bankruptcy scenario.
Automatic coverage. If you have a yacht policy in force when you buy a new or replacement boat it may be automatically covered for 15 days from the purchase date. That is the case with my personal Skippers' Plan policy. This feature was added to protect people who buy boats when our office is closed. Your policy may have special conditions or limits on automatic coverage so don't rely on this advice unless you know the policy wording. The other consideration is if your boat is located in the navigation area defined in your policy. If you live in Ontario and buy a boat in California the auto cover may not help you.
Coverage during road transport. Due to the miserable weather I chose to transport my Bavaria 38 from Cleveland to Ontario on a trailer. For this move I chose Andrew's Trucking Ltd. because they are one of the best in the business. The transport companies will tell you they are insured but it is not a good idea to rely on their insurance. The truckers have insurance to protect themselves from damage caused by their negligence. If an accident is caused by some other vehicle you could be out of luck unless you have coverage in your name. Your personal insurance will also provide seamless coverage during handling, loading, transport and unloading. More than a few people may have custody of your boat during a move but if you have your own policy it won't matter if the marina, the trucker or some other party damages your boat on the move from point A to point B. You may have to pay a bit more for this coverage with some companies but get you own policy.
Insurance tip for my Skippers' Plan clients : I have a list of Canadian boat haulers that I can recommend. If you use one of them I can get transport coverage without charging an additional premium .
Fortunately there is no claim component to the story of my Bavaria 38 insurance. The marina in Cleveland did a good job unstepping the mast and loading the boat. Then Andrew's Trucking secured the load properly brought her home without a scratch. Once in Ontario it was safely unloaded by Bristol Marine. So far so good.
My story pauses at this point as I work to get her commissioned. There will be more to follow in the blog about commissioning but that may take some time. Mike at The Rigging Shoppe will have to wait a bit longer for this report. Before that can happens my wife, Erica, will have her say so expect to see a guest blogger very soon.
I will also leave you a tidbit about an upcoming post. The topic will discuss the most difficult, time consuming and nerve-wracking part of this purchase so far. Choosing a new name for the boat. I found naming my children much easier. I welcome your suggestions and will publically thank anyone who suggests a name that everyone in the family will support.
Next Up: The Spousal version of events.
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| Call Me 1-800-661-7211 |
When to consider insurance. The minute your thoughts turn to "How am I going to pay for this boat" the next thought should be "How do I insure this asset." A good yacht broker may prod you along the way about insurance and if you are financing the purchase then insurance will be mandatory to release funds. The sooner you call me the better.
What kind of coverage do I need. For a new boat don't settle for anything other than all risk, agreed value coverage. There are less expensive options but if you have a claim in the next 10 years you will pay more in depreciation charges than you will save in premium over that time. For boats over a certain age you may not be able to buy agreed value coverage but it is worth asking.
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| A horrible situation that you should consider |
Automatic coverage. If you have a yacht policy in force when you buy a new or replacement boat it may be automatically covered for 15 days from the purchase date. That is the case with my personal Skippers' Plan policy. This feature was added to protect people who buy boats when our office is closed. Your policy may have special conditions or limits on automatic coverage so don't rely on this advice unless you know the policy wording. The other consideration is if your boat is located in the navigation area defined in your policy. If you live in Ontario and buy a boat in California the auto cover may not help you.
Coverage during road transport. Due to the miserable weather I chose to transport my Bavaria 38 from Cleveland to Ontario on a trailer. For this move I chose Andrew's Trucking Ltd. because they are one of the best in the business. The transport companies will tell you they are insured but it is not a good idea to rely on their insurance. The truckers have insurance to protect themselves from damage caused by their negligence. If an accident is caused by some other vehicle you could be out of luck unless you have coverage in your name. Your personal insurance will also provide seamless coverage during handling, loading, transport and unloading. More than a few people may have custody of your boat during a move but if you have your own policy it won't matter if the marina, the trucker or some other party damages your boat on the move from point A to point B. You may have to pay a bit more for this coverage with some companies but get you own policy.
Insurance tip for my Skippers' Plan clients : I have a list of Canadian boat haulers that I can recommend. If you use one of them I can get transport coverage without charging an additional premium .
Fortunately there is no claim component to the story of my Bavaria 38 insurance. The marina in Cleveland did a good job unstepping the mast and loading the boat. Then Andrew's Trucking secured the load properly brought her home without a scratch. Once in Ontario it was safely unloaded by Bristol Marine. So far so good.
My story pauses at this point as I work to get her commissioned. There will be more to follow in the blog about commissioning but that may take some time. Mike at The Rigging Shoppe will have to wait a bit longer for this report. Before that can happens my wife, Erica, will have her say so expect to see a guest blogger very soon.
I will also leave you a tidbit about an upcoming post. The topic will discuss the most difficult, time consuming and nerve-wracking part of this purchase so far. Choosing a new name for the boat. I found naming my children much easier. I welcome your suggestions and will publically thank anyone who suggests a name that everyone in the family will support.
Next Up: The Spousal version of events.
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