Boat Insurance Mistake To Avoid

Alright, with almost five years of liveaboard experience now, we’ve run into some headaches and head-scratchers when it comes to boat insurance.

We figured others might be able to learn from our mistakes and find our takeaways useful. Of course, you should watch the video for the full explanation of our personal mistakes. But here’s a shortlist of the takeaways for those of you who can’t stand the sound of our voices.

Key Takeaways re: Liveaboard Boat Insurance

1. Have a recent survey available
   Most boat insurance agencies won’t accept surveys that date back more than two years. So plan ahead to have a new survey done about every two years. Our advice: tie it in with a scheduled haul-out for bottom paint or other repair work.
2. Have the boat surveyed in its best condition
   This ties in with what we were just saying… if you plan on doing work to your boat, do it before the survey! Fewer “issues” reported on the survey = fewer red flags for the insurance agencies and underwriters.
3. Start gathering quotes early
   We’d suggest starting 1-2 months out by gathering quotes from different insurance agencies. Each agency requires different paperwork, and there are often a few back-and-forth emails and phone calls with days in between each reply.
4. Avoid renewal during hurricane season
   We had a nightmare of a situation with our first policy renewal on our first boat, Wiffersnapper. Even though we started shopping early, it took a while to gather enough info for us to decide to ultimately renew with our same agency. But, by that time, a named hurricane had developed in the Caribbean, and they wouldn’t bind our renewal while the storm was out there. It was hurricane Irma, and she made landfall in our area, of course. Luckily, we didn’t have any major damage from the storm, since we were uninsured at that point. A terribly stressful experience, for sure. Don’t make that mistake!
   
   Hugging Wiffersnapper after Irma
5. Be familiar with “liveaboard” classifications
   Being a liveaboard doesn’t make it “harder” to get boat insurance, per se, but not all agencies will insure liveaboards. So, read up on the legal definition of a liveaboard in your state, and make sure you’re not enduring unnecessary hardship.
6. Don’t go under-insured
   So, with our current boat, we got a REALLY good deal on the purchase price (which is great, right?) Yeees, except, no one wants to insure the boat for its true market value, since we paid less than market value for it. This ties into our next point…
7. Weigh your options
   Market value vs. declared value, the amount of liability, the additional coverage, the restrictions on travel… and of course the premiums. There’s lots to consider when comparing different plans, so take your time and ask as many questions as you need to feel comfortable with your choice.

Watch The Video

Okay, that was a lot! I hope you found some value in the takeaways that we’ve learned in our few years as liveaboards. Watch the video below for more on the topic!