Some boats seem uninsurable at reasonable rates these days. Wooden hulls with big engines and ultra-high speed craft with hp/length ratios over 10:1 are tough to insure. Some states have problems too. Boats which look attractive to dope smugglers are tough to insure in Florida.
2. PICK AN INSURANCE AGENT YOU CAN TRUST
Selecting your insurance agent is the most important step. Insurance agents are a bit like real estate salesmen. Their commission depends on sales so they have a vested interest in selling you the largest policy. Offsetting this is their need to compete in the marketplace. Good agents are willing to go to the wall for their clients. Poor agents won't. Good agents spend time with clients and make certain that they understand exactly what is needed. Poor agents write coverage as fast as possible. Good agents admit that they don't know the answer to a complex question, but get back to you with a clear answer. Poor agents waffle.
3. MARINE OR SPECIAL AGENT?
Do you need a specialist or should you place your policy with your general agent? Marine insurance specialists can cut costs with specialized policies, especially those with limited-peril or other coverage. A general agent who handles your other policies may know less about marine needs, but can have more leverage with claims that can go either way when he can say, "we may lose their auto and homeowner's coverage if you don't pay this." Reputation is the key, but it should never be confused with high visibility.
4. SHOP FOR COVERAGE
Collect at least three different policies and compare them carefully. Pay close attention to exclusions! I use yellow highlighter to mark any confusing conditions, coverages or restrictions and ask the agent to explain them. Before I sign the policy I select I ask for these explanations in writing.
5. DON'T OVER INSURE
Experts agree insurance works best if used to cover only the risks you can't afford. Don't forget that insurance pools the risk of all policies in a given class, then adds on a percentage to cover overhead and the like. If you are an especially careful, cautious or skilled boater your real risk may be less than average so you might want to carry some risk for hull or other damage insurance yourself. So if you have any doubt about physical damage coverage take the smaller amount of coverage. If you can't afford to take some of the risk and responsibility yourself, you probably shouldn't be skippering a boat!
