There was a pretty interesting article in Practical Sailor about BoatUS insurance through GEICO. I posted this on Sailing Anarchy. If anyone wants to read the thread, here's the link:
http://forums.sailinganarchy.com/index.php?/topic/215592-insurance-for-old-boats/&tab=comments#comment-7061263 Posted May 25
Practical Sailor has had some articles recently that cover insurance obtained through Boat US. For those of us with older boats, it looks like we don't have much in the way of coverage. And it's getting worse.
For "hard goods" - things such as fiberglass repairs (including hull damage) as well as damage to things including wood, masts, spars, paint, rails, stainless frames, aluminum T-tops - the maximum the policy would pay for any damage was reduced by 10 percent for every year past 20 years of age.
One reader asked, “If I lose the mast, or get T-boned by another boat while my 47 year old boat is sitting peacefully at anchor, the policy pays only 20 percent of the actual cost of repairs, less deductible?”
The Boat US rep answered answered in the affirmative, "As in the fictional T-bone scenario, fiberglass repairs would be depreciated under the existing policy."
For "soft goods" starting in mid-March 2020 under the updated GEICO Marine Insurance agreed hull value policy, sails, canvas, carpeting, cushions and fabrics will factor in depreciation beginning with the sixth year from the year of manufacture. "We will no longer offer a depreciation waiver for boats beyond 20 years of manufacture."
Also starting at the same time, “machinery,” such as engines, gensets and other onboard machinery will see depreciation applied starting with the eleventh year (instead of the formerly 20th year) of manufacture (with depreciation not greater than 80 percent).
When it comes to salvage - "understand that half of all sinkings occur at the dock when some small part below the waterline fails. However, these parts – an outdrive bellows, for example – most often fail due to “wear, tear, and corrosion” or a lack of maintenance, so the policy won’t pay for a new outdrive bellows. But here’s the rub: As a consequence of the failed bellows, your boat has sunk and is likely a total loss. Who pays for that? That’s why you need “consequential damage” coverage that pays for losses that often start with a failed part that may be excluded under the policy. The small, inexpensive part that failed may not be covered, but the rest of the repairs or total loss will be.
One caveat: This consequential damage coverage often applies only to specific types of losses, for example, the immediate consequential damage resulting from any fire, explosion, sinking, dismasting, collision or stranding. These are the types of losses that typically cause a constructive total loss scenario."
If you subscribe to PS, you can find that article here:
https://www.practical-sailor.com/safety-seamanship/insuring-old-boats
