Insurance… Things have changed

While we were waiting to get our mast stepped I figured it would be a good time to take care of some administrative tasks for the boat. Namely, getting the Bahamas rider added to my policy. I have the same insurance company and policy that I had in 2019 — the last time I went to the Bahamas. Then, it was simple. I called and told them I wanted to update my policy. I had them add the Bahamas rider and the additional cost was offset by removing the freeze/ice damage rider.

This time I called and they wanted to know my travel dates. Being a curious person, I asked why that matters. Well, it does to the underwriters and their rider now has a 120 day per policy year limit. Not good, but I can work with that. But it gets worse. They told me that my boat’s location is in Illinois. I explained that I’m from Illinois and normally keep my boat in Illinois, but I’m currently doing the Loop and would like to visit the Bahamas. I found out that boats located in Illinois are not eligible for the Bahamas rider. Uh oh. That’s not good.

To change my location, I need to provide a contract or agreement from a marina or storage yard as proof that my boat has moved. Not a big deal as Sue and I were planning on hauling Odyssey out for the Summer in FL or GA and return to Chicago. It forces us to look for a yard sooner than we had planned but probably a good thing.

Not to bore you with details, but when picking a storage yard, I had several criteria that are proving hard to find. I’m very concerned about mold growth leaving Odyssey for the summer in the South. It gets hot and humid. I want a yard with electricity so I can run dehumidifiers and fans while I’m gone. I’m also looking for a yard that is close. I don’t want to have to go to Virginia just to haul out. And, I want to make sure the yard offers wellness checks. Just in case the power cord gets pulled, etc.

Sue was burning up the internet looking for a boat yard that meets all our criteria. We were looking on the east coast of FL and GA but she was thinking outside the box and found a perfect yard near Punta Gorda on the west side of FL. I talked to some of the guys at the rigging shop and they highly recommend the yard that Sue found. Called the insurance back and got the new rate. Since my location has changed, my rate will more than double.

Fed up, I finally called a marine insurance broker to shop around for me. He found a policy that was higher than my current but reasonable. It included a Bahamas rider. But after reading the fine print, I discovered I could only stay in the Bahamas for 30 days, and then I’d have to return to the US for 2 days, then go back to the Bahamas for another 30 days. Rinse and repeat. That’s even worse. It’s $300 each time you clear into the Bahamas. So, that policy is out.

The broker found another policy, with unlimited stay in the Bahamas and priced it with me hauling out in North Carolina. Problem is it’s more than 4 times what my current policy is. And that’s storing the boat pretty far inland in North Carolina during hurricane season. Getting there in the spring isn’t bad. Heading south in the fall from there is not pleasant. The North Atlantic is not friendly that time of year and we’d rather not have to stay that far north.

Now, I’m back with my current insurance company. Doubling my rate is certainly better than quadrupling. We can make the 120 day limit work. Then I hit the next hurdle. The current insurance company requires a current haul-out inspection as well as a rigging inspection.

Since I’m at the rigging shop, it’s easy for me to get the rig inspection. Will it pass muster with the underwriters? I don’t know. They asked how old my rigging is and I don’t know. I never replaced it. In salt water, rigging is generally replaced every 7 to 10 years. In fresh water, I only hear of rigging being replaced when there’s an accident or lightening strike. As they were doing the inspection, there really wasn’t any corrosion, but they kept stressing it’s passed the “service life”. And I kept reminding them it’s past the saltwater service life. What is the service life of rigging in fresh water?

I was hoping to arrange a short haul and have a surveyor come down while I’m at the boat yard, but not surprisingly, the yard and surveyors need more than 4 hours of notice. I do have names of surveyors in the Destin area, our next stop, and hope we can get this taken care of.

I’m happy with the riggers here in Pensacola and if I have to replace my standing rigging, this is where I’d come. So, I’d like to have all this worked out before we leave the Destin area.

This is incredibly frustrating. When I talked to some of my friends who do this regularly I find out they go uninsured. I might get talked into going without comprehensive coverage, but there is NO way I’ll go without liability insurance.

I still don’t have this worked out and to be honest, wintering in the Bahamas is quickly losing it’s appeal. So much has changed since our last visit. Had I know all this, I might have stayed on the Great Lakes and enjoyed my time there. Who knows, maybe my next call will be to a boat broker. I don’t think I’ll bring Odyssey back to the Great Lakes, she’s more in her element here.

When I talk to folks about boating they’re always amazed at how “unregulated” it is. No license needed, you can just go out and buy a boat. No need to grovel to uncle for special permission to drive your boat. I always remind them that’s not true. It is heavily regulated. Not by government, but by insurance companies. At least with government officials, you can vote them out or make campaign contributions. Short of becoming a majority stock holder, there’s not much you can do with insurance companies.

My last rant about insurance: Technically, I’m covered if I decided to sail the Northwest Passage, probably the hardest continual sailing route in the world, but I can’t go to the Bahamas. That does sound like government.

More to come…