Blog 2020

What About Your Boat's Wake?

You can save a lot of aggravation, some money and avoid being the recipient of some not so nice gestures from other boaters by using a little common sense and courtesy. This means coming completely off plane when you enter a no-wake zone or any area where your wake could compromise the safety of other boats. All too often the skippers react to a no-wake sign by slowing the boat slightly and then plowing through with the boat's bow up in the air and the stern dug down into the water. Instead of reducing the size of the boat's wake, this token reduction in speed — not quite on plane — increases the size of the wake.

No wake means NO WAKE. The first rule is to slow down so that the boat is level (without using trim tabs) and the size of the wake is negligible. Look back at the wake you're creating. You can help to reduce the size of your boat's wake by positioning passengers toward the center of the boat to keep it level. Too much weight aft lowers the stern and increases the size of the wake. Finally, keep an eye on your depth sounder; shallow water increases the impact of your boat's wake.

Damaging wakes can also be caused when a skipper waits too long to pull back on the throttle. A good example is the young skipper in New Jersey who was tying up at a marina gas dock when he encountered someone who was "cursing and accusing me of not having any respect." Words were exchanged, gestures were made. The young skipper's cruiser, it seems, had created a large wake that bashed several boats at the marina against pilings and finger piers. He had "slowed" just before reaching the gas dock, so he reasoned that the damage must have been caused by "some other boat's wake."

What is the best coverage for my boat?

It is best to have what is known as an "All Risk" policy, which will provide coverage for all types of losses except those specifically excluded in the policy. Typical exclusions may include wear and tear, gradual deterioration, marring, denting, scratching, animal damage, manufacturer's defects, defects in design, and ice and freezing.

How much should I insure my boat for?

You should insure your boat for the amount it would cost you to replace it with like kind and quality. This is called "Agreed Value" or "Stated Value" coverage, and in the event of a total loss, will pay the full insured amount. Beware of policies providing "Actual Cash Value" (ACV) coverage, which means the value of your boat will be replacement cost less depreciation.

What other coverages can I expect with my policy?

The following are standard coverages with standard deductibles and average limits:

• Medical payments, $5,000
• $1,000 limit Personal effects, $250 deductible
• Uninsured boaters liability, between $300,000 and $500,000
• $500 to $1000 limit Towing and assistance, no deductible
• $1,000 limit Fishing equipment, $250 deductible

Who is allowed to operate my boat?

Most policies will allow anyone to operate your boat so long as you have given them permission. There are exceptions, of course, especially with high performance boats or personal watercraft so always read your policy. But beware, too many additional drivers often results in increased premiums.

I live in an area where I can't use my boat in the winter, but my lender requires it be insured year-round. What can I do?

Ask your insurance agent if they offer what is commonly referred to as a “lay-up” discount. You have year-round coverage with a discount for the months your boat is in dry storage.

Large Boat (Greater than 29') Insurance

What are the differences between boat and yacht insurance?

Generally "boats" are considered to be 26' and smaller, and "yachts" are 27' and larger. Generally speaking yacht coverage is broader and more specialized because larger boats travel further and have more unique exposures.

What should I look for in a yacht policy?

There are two main section s of a yacht policy. Hull insurance is all risk direct damage coverage that creates a very broad insuring agreement. It will include agreed amount hull coverage, meaning all parties agree at the time the policy is written on the value of the vessel and that value will be paid in the event of a total loss.

A true yacht policy also includes replacement cost (new for old) coverage on partial losses, with the exception of sails, canvas, batteries, outboards and sometimes outdrives, which are depreciated. Protection and indemnity insurance is the broadest of all liability coverages, and because maritime law is unique, you will need coverages that are designed for those exposures. Such things as Harborworkers and Longshoreman's coverage and Jones Act (crew) coverage can be critical, as an uncovered loss in this area could run into hundreds of thousands of dollars. Besides providing payment of judgments against you, P&I also provides for your defense in Admiralty Courts.

Marine insurance covers a wide array of watercraft. You may be surprised to find what can be insured. Marine insurance policies include:

• Boat
• Personal Watercraft (PWC)
• YACHT - generally, vessels 26' and smaller are called "boats,” and "yachts" are 27' and larger. Yacht coverage tends to be broader and more specialized because larger boats travel farther and have more unique exposures.
• SAILBOAT
• DINGHY
• Boat & PWC Rental - Although this is generally not required, rental insurance will help cover any damage the vessel, as well as the operator and passengers.
• Boat Clubs - covers all members of club while operating a boat.
• Professional (ProAngler, Fishing Guides & Charters) - These policies are very customizable and can cover items like travel to a tournament, equipment and more.

Types of Boat Insurance Coverage

This will depend on the type of policy, but common coverage add-ons (in addition to basic ones above) include:

• Specialized Coverage: Coverage for something specific on your boat like an expensive prop or navigation equipment.
• Salvage: Coverage that pays to remove your boat due to damage, from substantial to minor.
• Consequential Damage: Covers a loss that was the result wear and tear rather than an accident (rot, mold, corrosion).
• Towing: Towing your boat across a body of water to safety can cost $400 per hour.
• Cruising Extension: You can get temporary, additional coverage if you plan on leaving the USA (typically to Mexico or the Bahamas).

"Can I even use the boat legally in the state I'm heading to?"

If you've ever boated out of state, you may already know that the answer depends on many factors including the state you're visiting, your age, your boating education, vessel type, engine size, whether you rent or own the boat, how long you're staying, and if you want to engage in towed water sports.

First things first — your boating education certification is not a license, which can be suspended or revoked. It allows you to operate certain watercraft in the waters of the state it was issued by. But many states practice "reciprocity," meaning a valid certification in one state is accepted in another state (typically with length of time restrictions).

But if you're certified to operate a boat in Florida, can you throttle up in California? Or Connecticut?

This is a challenge that the National Association of State Boating Law Administrators (NASBLA) education directors, Pam Dillon and Mark Chanski, know well. "We often hear people say 'Well, why isn't it just one size fits all?'" says Dillon.

"It's because we have 56 different states and territories that see things differently, and that's their right."

NASBLA represents boating authorities of all states and territories and works to set and maintain boating education standards across the country. Fortunately, there are people like Dillon and Chanski who work to streamline requirements and help boaters access the information they need for boating outside their home state. "NASBLA's role is to review the content of the courses and make sure it covers the requirements that are in the American National Standard," Dillon says.

Fortunately, there are a few easy ways to ensure that you're boating on the right side of the law.

1. Take a state and NASBLA-approved boating course. "If you're an adult boater visiting another state, and if you have a boater education card with the NASBLA-approved logo on it, you should be good to go," said Dillon. "I say 'should' because there may be some local restrictions, like with personal watercraft (PWC) you may need an additional endorsement."
2. Check state requirements on NASBLA.org before you go. While many states will accept a NASBLA-approved card, it's important to check state requirements before departure. Some states require special towing endorsements for activities like water skiing, or have different education requirements for PWCs. Many states have requirements that vary based on vessel type or engine size. In addition, there may be restrictions for youth.
3. Contact the local agency. NASBLA's Dashboard lists boat operator requirements by state, but there may be other considerations, like local interpretation of policies and requirements unique to a boater's individual situation. For instance, there may be a state-to-state agreement in place that affords you special privileges (e.g., a visitor to Connecticut from New Jersey with a New Jersey-issued boating certificate would not be able to operate a PWC, but a visitor from Rhode Island with a Rhode Island boating certificate would be able to operate one.)

Presentation Pays

Deciding where to invest in fixing up your boat for sale comes down to two questions that every boat owner should ask themselves:

What will it cost to make the repair or upgrade?

What will it cost if I don't?

Fortunately, there are a few easy and inexpensive things you can do, which will always improve the marketability and speed up a sale.

Here's what the pros had to say:

1. De-clutter by removing anything that's not intended to be sold
2. Cleaning and waxing is the best money you can spend,including all compartments, lazarettes, bilges, storage areas, and awnings
3. Buyers will walk right off a boat if it smells, take a sniff
   
4. Keep the engine room clean and tidy
5. Repair anything you already know is broken or defective including all electronics, lights, and accessories