insurancegoddess
04-13-2011, 08:59 PM
Obviously, in my field of work, I talk to a lot of boat owners throughout the course of the day. Some calling for advice and others calling to get quotes or bind their insurance coverage.
There is one aspect of the policy that comes up in nearly every quote I give or advice giving conversation that I have and that is the lay up. Often times boat owners assume that having a lay up on your policy means that you are not covered at all during that period of time. This is only partially true.
Allow me to explain... If a lay up period is listed on a declarations page then the carrier assumes that the boat is not being used on the water during this period of time. These dates typically coincide with the boater's "winter dates". During the lay up period the boat would be covered for all storage and transit exposures according to the policy form but NOT for any on water use.
So just because your season is over and your insurance policy enters it's lay up period, does not mean your not covered for damage to the boat. Some boaters think, that they can cancel an insurance policy because it is "safe" in their storage location during that period of time. Do not make this assumption. I have seen plenty of winter claims comes in for various reasons. Here are some things that happened last year:
•Roof from the building where the boat was stored in collapsed due to the weight of snow and damaged the boat.
•Barn was broken into and outdrives and electronics were stolen off the boat.
•Fire started in the garage.
•Fire started by a another person's boat that was stored at the same facility as our client's boat. The fire damages to boat.
Don't assume that your boat is so safely stored during winter that you opt to let your insurance lapse until spring.
Keep your policy in force and if you have a lay up on your policy, just don't put the boat in the water.
Not all policies have designated lay up dates on the declarations page. Most of the carriers that write high performance boats will have a lay up. I think one of the only exceptions to the high performance carriers at this time is American Modern. They do not designate lay up periods on their policies.
Lay up policies "credit" a portion of your policy to some degree for not using the boat on the water during your lay up period. So having a lay up period on your performance policy will likely lower the rate.
However, if your carrier doesn't do a designated lay up period, don't think that you're not getting any credit. You likely are. Your lay up discount is factored into the rate you pay per $100 in coverage on your boat. For example, the rates paid per $100 in coverage for a MI based policy where you're lucky to have 5 months to boat vs an AZ based policy where you could technically boat year round is less money per $100 in coverage. So the "assumed" lay up time is already factored into your rate.
Hope that makes sense. If you need clarification or have questions about lay up periods, let me know. I'll be happy to answer.
There is one aspect of the policy that comes up in nearly every quote I give or advice giving conversation that I have and that is the lay up. Often times boat owners assume that having a lay up on your policy means that you are not covered at all during that period of time. This is only partially true.
Allow me to explain... If a lay up period is listed on a declarations page then the carrier assumes that the boat is not being used on the water during this period of time. These dates typically coincide with the boater's "winter dates". During the lay up period the boat would be covered for all storage and transit exposures according to the policy form but NOT for any on water use.
So just because your season is over and your insurance policy enters it's lay up period, does not mean your not covered for damage to the boat. Some boaters think, that they can cancel an insurance policy because it is "safe" in their storage location during that period of time. Do not make this assumption. I have seen plenty of winter claims comes in for various reasons. Here are some things that happened last year:
•Roof from the building where the boat was stored in collapsed due to the weight of snow and damaged the boat.
•Barn was broken into and outdrives and electronics were stolen off the boat.
•Fire started in the garage.
•Fire started by a another person's boat that was stored at the same facility as our client's boat. The fire damages to boat.
Don't assume that your boat is so safely stored during winter that you opt to let your insurance lapse until spring.
Keep your policy in force and if you have a lay up on your policy, just don't put the boat in the water.
Not all policies have designated lay up dates on the declarations page. Most of the carriers that write high performance boats will have a lay up. I think one of the only exceptions to the high performance carriers at this time is American Modern. They do not designate lay up periods on their policies.
Lay up policies "credit" a portion of your policy to some degree for not using the boat on the water during your lay up period. So having a lay up period on your performance policy will likely lower the rate.
However, if your carrier doesn't do a designated lay up period, don't think that you're not getting any credit. You likely are. Your lay up discount is factored into the rate you pay per $100 in coverage on your boat. For example, the rates paid per $100 in coverage for a MI based policy where you're lucky to have 5 months to boat vs an AZ based policy where you could technically boat year round is less money per $100 in coverage. So the "assumed" lay up time is already factored into your rate.
Hope that makes sense. If you need clarification or have questions about lay up periods, let me know. I'll be happy to answer.