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Project boat insurance

Old 07-02-2010, 06:53 AM
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Default Project boat insurance

I have a question about insuring a boat while it is in the shop being restored / refitted.

Can this fall under a homeowners policy as personal property?

Why would you have to buy boat insurance if you aquired a project boat that at the time of title change wasn't running or in the water?

I'm just trying to protect personal property from a fire loss or theft. Does anyone have experience with this? Thanks.
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Old 07-02-2010, 12:51 PM
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check with your homeowners agent to be sure, but the boat should be covered if it is kept on your property in the garage. If it is not on your property but on the property of the outfit doing the restoration then it should be covered under their insurance policy.

Have a great holiday

Adam
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Old 07-02-2010, 04:15 PM
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Originally Posted by frickstyle
I have a question about insuring a boat while it is in the shop being restored / refitted.

Can this fall under a homeowners policy as personal property?

Why would you have to buy boat insurance if you aquired a project boat that at the time of title change wasn't running or in the water?

I'm just trying to protect personal property from a fire loss or theft. Does anyone have experience with this? Thanks.
I have a different stance on this based on the policies I've seen. Your boat (hull, parts etc) isn't necessarily covered under your homeowners policy. But if it is, it is likely only covered up to a certain amount. I would ask your homeowners agent or check your policy yourself. You can find the answer under Coverage C - Personal Property.

In my opinion, coverage is likely going to fall under the Special Limits section on Coverage C. You will get an "allotted amount" of money in coverage, NOT necessarily the value of the boat and equipment. If you want coverage over and above the amount your homeowners policy offers (and they won't endorse coverage) then you will need to purchase a Storage and Transit Policy for the time being. Then, once the project is finished you can get a full marine policy.

Here is what an OH based Safeco/Liberty Mutual policy states under Coverage C section:
3. SPECIAL LIMITS FOR PERSONAL PROPERTY
The following groups of personal property are covered only up to the special limit shown on your Policy
Declarations page
. The special limit is the total amount available for each group for any one loss and does
not increase the Coverage C limit. The loss of, or damage to, more than one item in a group arising from
the same cause or event is considered one loss....
d. Watercraft, including their trailers, furnishings, equipment and outboard motors.
YOU NEED TO ASK YOUR AGENT WHAT "SPECIAL LIMIT" APPLIES FOR YOUR POLICY.

I know that my home policy only covers boats up to $1500 while the boat is being stored on the property unless the policy is endorsed to cover the full limit and an additional premium paid.

I do agree with Adam that if the property is in the care, custody and control of a repair shop, then their SRLL (Ship Repairers Legal Liability) should cover your poperty, however, I would not bank on them always carrying coverage. You would be surprised how many repair shops (marine and auto) let their policies lapse or don't bother carrying it at all....

Last edited by WakezoneINS; 07-02-2010 at 09:33 PM.
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Old 07-03-2010, 09:43 AM
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Really good info guys, thanks for the feedback. I will investigate and post what I find in case others are in the same situation. I will be doing alot of the owrk myself, the boat will be stored in a rented facility. I figure this makes matters even more confusing.

I will be contacting you when I am ready for a full blown marine policy.

Thanks again, you guys really know your stuff!
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