Insurance companies prejudice towards liveaboards

[Mac2]

Looking into finding a reduced rate for insurance after my recent survey and discovered a large number of insurance companies won't even insure liveaboards. I find this perplexing. I would think a liveaboard would get a discount rather than penalized. After all, being on scene to discover an emerging problem, seems like a good thing. Plus the fact I have saved insurance companies multiple thousands of dollars for the sinking boats I have called in along with thieves breaking into boats, diesel spills, and on and on. Can anyone explain this? Is there a movement to educate underwriters?

 

[Delta Riverat]

Yeah, kinda funny eh? Insurance companies don't want to insure vacant houses for sure. No one to catch water leaks, vandalism and theft, but frown on living on a boat? Disconnect for sure.

I love the fact that I have liveaboards on both sides of me.

 

[psneeld]

What you are not getting is many liveaboards are not TFers with some care and knowledge of boats...but a great many of them are dreamers with no clue at all.

Live amongst them like I have...not the loopers and not the well off snowbirders or world cruisers, but the down on their luck liveaboards who decided the Jimmy Buffet dream is doable on a whim and a bit of cash.... experience and knowledge not a prerequisite.

Some insurance companies don't seem to put much faith in the human element that has tons of exceptional boating experience and cares for their boat like a child and has NEVER had a claim in 50 years of boating, yet a few insurance companies do..... but you are still gonna pay a higher premium because shi* happens when using a boat 24X7X365.

 

[Mac2]

I get some people don’t take care of their boats. I would think that would be more reason to have a livaboard to detect the inevitable problem. I get what you’re saying if these boats actually leave the dock but I remember a boating article that did a study showing more boats sank at the dock then at sea-an argument in favor of a livaboard.

 

[PierreR]

Do you also have a dirt home? If so, you are not a liveaboard,

 

[psneeld]

I get some people don’t take care of their boats. I would think that would be more reason to have a livaboard to detect the inevitable problem. I get what you’re saying if these boats actually leave the dock but I remember a boating article that did a study showing more boats sank at the dock then at sea-an argument in favor of a livaboard.

I think you are missing the point that many liveaboards don't leave the dock and are clueless and thus are a major headache to insurance companies. Yes.... a select few of us liveaboards are responsible and save them thousands or more dollars but we are the outliers, not the major liability.

 

[psneeld]

Do you also have a dirt home? If so, you are not a liveaboard,

You are to an insurance company if you spend more than a certain number of days aboard. That is also true of many marinas. It doesn't have to be 365 days either.

The house isn't even part of the equation unless the insurance company is considering that in your "risk factor" that you have additional liability insurance and assets that can be attached if need be.

That is all what I have been told by insurance companies, brokers and adjusters through the years...but I am not an expert in the field.

 

[Mac2]

I think you are missing the point that many liveaboards don't leave the dock and are clueless and thus are a major headache to insurance companies. Yes.... a select few of us liveaboards are responsible and save them thousands or more dollars but we are the outliers, not the major liability.

Im trying to figure out why a insurance company differentiates between living aboard vs not living aboard weather your clueless or not. I would think the clueless part would make more of a difference i.e headache for the insurance company. When you consider I have to pay a livaboard fee for each person on my boat, it starts to get real aggravating.

 

[O C Diver]

I would assume that part of the reason has to do with liability of owners and guests. If the policy includes coverage for bodily injury to yourself and guests, the number of people / days for a liveaboard is likely exponentially higher than the average dirt dweller who probably doesn't visit his boat once a week.

Would also guess the amount of alcohol or recreational drugs consumed on the average liveaboard is exponentially higher. I can think of 5 maybe 10 people who ended up in the water between the boat and finger pier after dark. Not saying all of them were impaired, but boarding the boat after 10pm can have its risks.

Ted

 

[Delta Riverat]

I dunno about insurance co's, but the marina allows a max of 10 days per month and no more than 3 consecutive or pay the additional for liveaboard.

 

[psneeld]

Im trying to figure out why a insurance company differentiates between living aboard vs not living aboard weather your clueless or not. I would think the clueless part would make more of a difference i.e headache for the insurance company. When you consider I have to pay a livaboard fee for each person on my boat, it starts to get real aggravating.

Insurance companies usually assume you are not a liveaboard unless you ask them for liveaboard insurance or they specifically ask how many days a year do you spend aboard or based on your requested navigation area is so large that you are going to hit that days aboard issue.

The big issue with liveaboard policies is they cover you for liability away from the boat. That is important to many who liveaboard and have no other liability coverage that homeowners and renters insurance would normally cover you anywhere you are.

Marinas charging you is a whole other ballgame of time aboard and number of people using facilities/utilities.

 

[tiltrider1]

I have never had a liveaboard issue with insurance. I deal with Red Shield. They only write policies on the West Coast and require riders for heading to Mexico or Alaska. By controlling their environment they control their risk. I recommend talking to Peter at Novamar Insurance in Seattle. He is a full time cruiser like many of us.

 

[Mac2]

I don’t have a dirt home. There are no facilities at my marina. Interesting comment on liability coverage away from the boat. My marina is the footprint of a burned down boathouse. Rags caught on fire-not disposed of properly. 4 million in damage. Bet they wish there was a livaboard to raise the alarm.