Five Ways Your Boat's Insurance Policy Can Fail You

Insurance is one of those things you hope you never have to use, but if you do, you expect the policy to fix the boat or compensate you fairly. If you haven't taken a close look at your boat insurance, you could be surprised to find that you may not be entitled to a payout with some common types of claims. That's because unlike home or auto, boat insurance policies offer a wide range of coverage, from very little to a lot. Boat Owners Association of The United States (BoatUS) recently took a look at the most common claims over the past five years, and has these tips so you will know if your boat's insurance policy will live up to your expectations:

Consequential Damage: If you take hurricane losses out of the list of common claims, the number one claim is for sinking, and half of all sinkings occur at the dock when some small part below the waterline fails. The most common culprits include hoses/hose clamps, stuffing boxes, outdrive bellows, and sea strainers. But these parts most often fail due to "wear, tear, and corrosion" which is a lack of maintenance issue, so policies won't pay you for a new outdrive bellows or sea strainer. But what about the rest of the boat sitting sunk on the lake bottom? Some policies won't cover that, either, as they exclude any "consequential" damage as a result of wear, tear and corrosion. That's why you need "Consequential Damage" coverage that covers losses that often start with a failed part.

Fuel-spill liability: Some policies only pay the cost of cleaning up a fuel spill if it occurs due to a "covered loss." So if your sunken boat wasn't covered because the outdrive bellows failed due to wear, tear or corrosion, the resulting fuel spill won't be either. Sometimes fuel spill coverage is subtracted from other liability payments. A better policy separates out fuel-spill liability and provides coverage up to the maximum amount you can be held liable for under federal law, which today is a whopping $854,000.

Salvage: Hurricanes lead the list of most common claims from 2008 to 2012. In every hurricane boats get scattered and need to be salvaged and safely brought back to their storage area. That takes cranes, travel lifts, flatbed trucks, and other heavy equipment that typically costs hundreds of dollars per foot of boat length. However, as a few boaters found out with Hurricane Sandy, some policies subtract the money paid to salvage the boat from what you get paid to fix the boat, while others only offer salvage coverage up to 25% or 30% of the insured value. A better policy provides separate salvage coverage up to the insured value of the boat - in addition to any payments to fix the boat or replace equipment.

Wreck removal: When fires, sinkings, hurricanes or running up on a shoal destroy your boat, you end up with a "wreck." Most boaters assume their insurance company will cover the cost of cleaning up what's left, but some policies will give you a check for the insured value and only a specified percentage for wreck removal - 3% to 10% is typical - and walk away. That leaves your wallet short and you managing a job you have little knowledge of. Better policies pay up to the liability limit, usually $100,000 or more, to clean up the mess, and don't let you go it alone.

Liability-only policies: Looking through the claims files, injuries make the top ten list for payouts not because of their frequency, but because settlements tend to be expensive. Having no insurance could leave you open to a six-figure settlement. If you have a liability-only policy, the better ones will cover injuries as well as salvage, wreck removal and fuel-spill liability.

The "Magenta Line" To Get a Safer Route

It's over 70 years old, a thin magenta-colored line appearing on over 50 different navigational charts covering the Atlantic Coast and Gulf, snaking along the route of the Intracoastal Waterway. Now, thanks to NOAA's Office of Coast Survey and a public-private partnership with Active Captain, an interactive cruising guidebook, NOAA will be updating the "magenta line" on all of its newly-issued navigational charts to help keep boaters in safe waters. Boat Owners Association of The United States (BoatUS) submitted comments on the proposal to NOAA, who had initially proposed removing the line entirely. However, responding to BoatUS' and other boaters' comments, NOAA will tap into users of Active Captain to update the route in an on-going effort that will benefit the boating community.

"Some boaters had assumed the magenta line, which was last updated in 1935, was a precise route through safe waters," said BoatUS Government Affairs Senior Program Coordinator David Kennedy. "However, over time the forces of nature made the line inaccurate as shoals shifted and underwater topography changed, leading some boats into shallows, over dangerous obstructions, or even into land. We thank NOAA for a change of course in keeping the magenta line, listening to boaters and coming up with a creative public-private partnership that recognizes the value of this important guide to navigation."

The magenta line appears in charts covering all Intracoastal waters, and is essentially two distinct routes along the eastern US and Gulf Coasts totaling about 3,000 miles in length. Said Captain Shep Smith, chief of NOAA's Coast Survey's Marine Chart Division, "Today's decision to reinstate the magenta line is not a quick fix. It will take at least three years to fix problems that were 70 years in the making."

Boaters may contribute to the updating effort by joining Active Captain at www.activecaptain.com.

For Winter Boat Shoppers, It's Still a Buyer's Market

BoatUS says boat dealers are in the dealing mood this winter boat show season.

With the winter boat shows kicking off across America, Boat Owners Association of The United States (BoatUS) says buyers are still in the driver’s seat when it comes to buying a boat. And if your qualifications add up - including having good credit - getting a boat loan should not be difficult.

 

“If you have been holding back for the past few years, now may be the time to pull the trigger,” said BoatUS Vice President of Finance, Charm Addington. “Boat loan rates are still low. While there isn’t the same level of pre-owned boat inventory as there was at this time last year, there are still plenty of used boats for sale. For those looking at a new boat purchase, manufacturers have increased production and will need to move inventory. We think dealers will be interested in making some deals this winter boat season, and combined with continued low interest rates, the winter boat buying season bodes well for buyers.”

 

To get a boat loan, Addington said boat lenders usually require two years of federal tax returns, a paycheck stub and can also require proof of liquid assets – funds that can be easily converted into cash – for the down payment. The heady days of “no documentation” loans are largely a thing of the past.

 

Here’s some other boat loan tips from BoatUS:

 

·     Unlike getting a home loan, getting a boat loan doesn’t require a “preapproval.” However, before you head to the boat show some boat lenders will offer preapprovals that include rate offers – just ensure the rate is verified, in writing, and not a teaser rate.

·      Depending on the buyer’s credit score and down payment, some banks may be able to offer a rate that’s lower than what is initially offered, so be sure to ask your lender.

·      Unlike most lenders, BoatUS Boat Loans posts current loan rates available at http://www.BoatUS.com/boatloans. “The rate and terms on our website are what we can offer boat buyers today,” said Addington. “We hope that gives peace of mind knowing the costs up front.”

 

 

 

Boat Owners Association of The United States (BoatUS) is the nation’s leading advocate for recreational boaters providing its over half-million members with government representation, services such as 24-hour on water boat towing as well as roadside assistance for boat trailers and tow vehicles, feature-packed boat insurance programs, money-saving benefits that include marina and West Marine shopping discounts, and vital information that improves recreational boating. Its member-funded BoatUS Foundation is a national leader promoting safe, clean and responsible boating.

 

Top Ten Gear Items for Small Boats

Some of these are required, some are just good sense. Always make sure you have the required safety items on board too!

There's a lot to be said for owning small runabouts, center consoles or bow riders. While they are affordable, easy to store, and can keep everyone in the family happy, they have their limits, though, if you want to venture into coastal waters and big lakes. But these journeys can still be done, with the right ten pieces of equipment. Here's what Boat Owners Association of The United States (BoatUS) recommends should be aboard every boat 20 feet or smaller:

Paddles: If your engine quits, paddles are your propulsion. Keep the outboard or sterndrive down for a rudder, and if you've got a buddy or a spouse aboard, you can make decent headway. A T-handle paddle, the kind used for whitewater canoeing, gives you a great grip. The aluminum shaft is light and strong, as is the high-impact plastic blade. Those materials don't mind sitting out in the weather, either. Make sure they're at least five feet long.

Dry box: Small boats typically lack dry storage. Large, plastic marine dry boxes with lids with O-rings seal out moisture and an extra-deep model can hold the radio, smartphone, flashlight, GPS and more, leaving them dry when you need them.

Anchors and line: Some small-boat manufacturers barely leave space for a lunch hook. But what happens if your engine quits, or you want to anchor overnight in a quiet cove? Stowing two anchors with different line lengths gives you options. Chain between line and anchor also helps. And don't forget a few docklines.

Wearable life jacket: Luckily, life jacket design has evolved and you can find Type III vest-style models that are comfortable to wear all day. Plenty of small-boat owners wear inflatable jackets. They're more buoyant, but more costly and require some care. Your best choice is any life jacket you'll always wear.

Compatible power source for electronics: When your cell phone runs out of juice during a nautical emergency, that's a crisis. Same goes for your flashlight, handheld GPS unit and VHF radio. Get devices that run on the same power source such as AA batteries and stow and extra sealed pack of batteries in the dry box.

Manual bailer: Small, closed-deck boats rely on a single, submersible pump to keep the bilge dry. But if that pump fails, or seawater comes over the gunwales or stern, or there's heavy rain, you've got a problem. Keeping a hand-operated bilge pump aboard is cheap insurance.

Air Horn: The US Coast Guard says small boats must have a "sound-producing device" for distress signaling, capable of a four-second blast that's audible one quarter-mile away. While a plastic whistle or an installed electric horn may meet the letter of the law, a better choice is a handheld, gas-powered air horn, which can be heard at much greater distances.

Spare prop and fix-It tools: A submerged ledge or log can whop your prop and cripple your boat. Having a spare prop and the right wrench is common advice, but changing a mangled wheel while afloat is easier said than done. Dents in aluminum props can be put back into serviceable shape, at least enough to get home. Beefy, vice-grip-style locking pliers and slip-joint pliers are essential for this repair.

Have a charging source: Cell phones don't run on AA batteries. That's why you need a marine rated 12-volt receptacle with a weatherproof cap. Mount it away from spray and rain, and don't forget the charging cords for other electronics.

Paper chart in plastic cover: Even a waterproof chart is hard to manage underway in an open boat. But by putting it in a clear, plastic holder, wind and water won't matter it will always be ready when you need it. You can buy one or make one with clear plastic from the hardware store and duct tape. 


Boat Owners Association of The United States (BoatUS) is the nation's leading advocate for recreational boaters

After that last Cold Snap, think about checking on your boat!

With temperatures now rising after record lows across much of the nation, Boat Owners Association of The United States (BoatUS) says now may be a good time to check on your boat in winter storage, and has these five tips to ensure old man winter is kept at bay:

1. How low can she go? If your boat is stored in the water over the winter, are all of the above-water thru-hulls still well above the waterline? The weight of snow and ice can submerge above-waterline thru-hulls, including the exhaust (inboard boats), so start shoveling if you notice she's sitting lower in the water - plastic shovels and brooms are best. It's also a good time to check on your bubbler system.

2. Call me shifty: For boats stored on trailers, jackstands or cradles, ensure the boat hasn't shifted. Boats on stands/cradles should be level, while those on trailers should be slightly bow up. Boats over 26 feet should have at least three jackstands per side, with plywood under each if the boat is on dirt or gravel - check to see they haven't moved and are chained together to prevent them from being pushed away from the boat. You know the stands are in the right place when there is no hull deformation at the point of contact. If you see any problems with a jackstand, don't try to adjust it yourself; contact marina staff.

3. Blowin' in the wind: It's never a good idea to store a boat outside without a cover, and never tie a tarp to a jackstand as strong winds can get underneath the cover and yank the stand out. Tying off a tarp to trailer framing is acceptable. Also, a poorly fitted cover can sag, allowing huge amounts of water to pool, freeze and add substantial weight, so be sure they remain taut to allow snow and rain to easily slide off.

4. Nothing good comes from water in the bilge: Water or ice in the bilge means a leak. Try to find the source of the water during your walk-through and look for a temporary fix to plug the leak that will buy you time until the spring. Rock salt and nontoxic antifreeze may help you break up and remove any ice in the bilge, then dry it completely. If that's impossible, or the leaks aren't patched, add a few cups of nontoxic antifreeze.

5. A word for the wise on inside boat storage: If the boat is inside a heated storage building, it's always a good idea to winterize the boat in the fall as the BoatUS Boat Insurance Program receives freeze-related damage claims each year after winter storms have knocked out power, allowing inside temperatures to plummet. However, at this time of year, the only thing you can do is to keep in contact with your storage facility to advise you the moment of any power loss and give you the chance to inspect the boat.