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Insurance will not be renewed

Discussion in 'General Yachting Discussion' started by dewald, May 28, 2021.

  1. dewald

    dewald Member

    Joined:
    Jun 27, 2017
    Messages:
    66
    Location:
    Treasure Island, Florida
    Just received this notice from my boat insurance broker.

    Dear Novamar Client:
    We are writing to let you know that Geico Marine has decided to stop offering boat insurance through its entire marine agency network. Therefore you will receive a non-renewal notice directly from Geico Marine approximately 60 days prior to your policy expiration date. A sample of the non-renewal letter is attached.

    Your Novamar Account Executive will be sending you a replacement quote prior to your Geico policy expiration date with a different insurance company to make the change as seamless as possible for our clients.

    Geico Marine has decided to place more focus on insuring smaller, lower value boats through their direct sales channel only. This shift is accompanied by other recent Geico Marine policy changes including reduced navigation capabilities, reduced maximum hull and liability coverage limits, maximum vessel age limitations, and the cancellation of the Geico megayacht insurance and charter boat insurance programs. These changes affect all Geico Marine distribution channels. Geico is a very financially strong carrier, however their changes don't fit the normal Novamar yacht client that often requires higher coverage limits and greater flexibility so the timing is good for us to move your coverage to another insurer when your current Geico Marine policy expires.

    IMPORTANT NOTICE: GEICO HAS INFORMED THEIR AGENTS IF A POLICY IS CANCELLED THEY WILL NOT REINSTATE COVERAGE FOR ANY REASON. IT IS VERY IMPORTANT THAT YOU DO NOT LET YOUR GEICO POLICY GET CANCELLED DUE TO NON-PAYMENT OF PREMIUM.

    Since 1987 Novamar has been providing marine insurance and expertise to knowledgeable yacht owners throughout North America and beyond. We know and access the entire yacht insurance market for our clients and we understand the insurance contracts. Only a trusted independent source like Novamar who is actively engaged in the local and global yacht insurance markets can provide the level of expertise required to evaluate the best fit for a given client. Novamar has 5 fully staffed U.S. offices & is licensed in all 50 states and our sister company, Novamar Insurance Mexico, is licensed in the Republic of Mexico. Novamar's capabilities are built over three decades of experience with a great team with a commitment not found with any other yacht insurance specialty insurance agency/brokerage.

    As the global yacht insurance market continues in disruption & uncertainty, Novamar is there navigating through the choppy waters with you to provide the best yacht insurance solutions to our valued clients. We look forward to many more years of doing business together. If you have any questions, or need to make any changes to your current coverage limits, please reach out by return e-mail or give us a call at the numbers below. Sincerely,

    Craig Chamberlain
    PRESIDENT
    NOVAMAR INSURANCE GROUP, INC.
  2. olderboater

    olderboater Senior Member

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    Be glad you're with Novamar as they will place you elsewhere.
  3. dewald

    dewald Member

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    Yes, I know they will work for me. But this will be my third Insurance company coverage in 6 years. No claims on my part, The other company's just wanted to reduce their exposure. Survey when I bought the boat, survey for the second insurance company and probably a third survey for the new company. Oh well it's a boat, bring out another thousand.
  4. olderboater

    olderboater Senior Member

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    Well, in South Florida we have homeowner's policies being cancelled left and right too. It increasingly has become difficult to keep with the same company long term.
  5. Yachtguymke

    Yachtguymke Senior Member

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    Naptown
    Two Words for all of you High Net Worth people - Pure Insurance. Not an advertisement, I use this company for everything. If you need contact information for someone, reach out to me.
  6. olderboater

    olderboater Senior Member

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    FYI, this is not just a marine decision. They're going strictly direct in all lines. Also, discontinuing some policies such as their Charter policy and their Superyacht policy.
  7. KoffeeCruising

    KoffeeCruising Member

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    Location:
    Fl
    GEICO chose not to renew my Charter policy, but I was able to get a regular GEICO Pleasure Boat policy as a replacement .... for more $$$

    Agreed carriers are looking to reduce their exposure.
  8. bayoubud

    bayoubud Senior Member

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    Coverage will always be available for more $$$. If other insurers follow the limited hull value and "vessel age" it will cause will cause some issues.
  9. Pascal

    Pascal Senior Member

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    Miami, FL
    Insurance market is a mess right now! It s insane. Just went thru this to insure the boss’ new boat. Only one company accepted to cover the boat. Apparently for a few of them a 2005 100+ footer is too old. Others had reach their quotas. Even the companies that insured the boats before (both out 84 and the new one) declined to issue new policies.

    Premium went from 0.7% of hull value for a 2009 84’ to 1.8% for the new boat
  10. bayoubud

    bayoubud Senior Member

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    We sold and closed our boat early this month, luckily good timing kept us from renewing the insurance 10 days later at a 42% increase to 19k, which was 1.8% of hull value. Likely will only have liability insurance on the next one.
  11. SplashFl

    SplashFl Member

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    Geico's renewal notice for my 25' Contender included a 12% annual increase with an even larger percentage decrease in "agreed" hull value and still no Bahamas Coverage.
  12. NYCAP123

    NYCAP123 Senior Member

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    I've been wondering when we'd start hearing of people self-insuring. Are there companies offering just liability?
  13. olderboater

    olderboater Senior Member

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    Yes, there are.
  14. NYCAP123

    NYCAP123 Senior Member

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    It would be interesting to hear if their liability concern is with the hulls or for damage and injury.
  15. bayoubud

    bayoubud Senior Member

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    Our insurer would not write just marine liability without full coverage. Have heard two reasons for the increases, one was reinsurers have pulled back and second the heavy losses from big hurricanes last few years. Floridians are getting a double whammy with property and marine insurance increases.
  16. SplashFl

    SplashFl Member

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    Broker told me the man who purchased my Bertram only took out a liability policy. From what I'm experiencing out there generally all they really want to insure these days are automobiles, or its their ploy to suck more $$$ from us.
    CJmesk likes this.
  17. olderboater

    olderboater Senior Member

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    Some will but they still require hull surveys and check out owners and operators as they're insuring for environmental claims as well as collision.
  18. Norseman

    Norseman Senior Member

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    Been self insured, on and off for years for boats and properties as everything has been paid for 100%.
    Some recent hurricanes however has made me nervous, better insure everything, the next category 5, like the one that wiped out the Abacos, could wipe us out as well.
    One boat has a charter policy, won’t go naked when doing revenue charters obviously, 2.5% on that one including 7 figure liability.
    The little pleasure skiff is Insured for it’s full value and $300k liability for under $300 per year.
    So far so good.
    If the insurers drop me I will discontinue revenue charters and keep the boat in the LLC, be self insured again, if anything will operate even more carefully . :eek:
  19. Danvilletim

    Danvilletim Senior Member

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    isleton, ca
    Self insuring is an interesting concept but getting hauled out is unlikely to happen without a policy. Our new policy has a $80,000 deductible. That’s nuts.
  20. Lunderic

    Lunderic New Member

    Joined:
    Sep 6, 2018
    Messages:
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    Location:
    Oceanside, NY
    I had an interesting experience with Gxxco. Purchased a 53 SF and got quote and before providing coverage they required upgrades/repairs as outlined in the Survey (pretty normal). Unfortunately due to delays for service and parts arriving the repairs took over 60 days. I completed all required items to their satisfaction but now they claim 60 days lapsed and the rate went up by 50%. They said all policies in NY went up the same % however I also have a another 33 SF boat insured with them and they just renewed with only a 3% increase. So I kept asking questions and it turns out if I move the boat 16 miles to NJ the coverage will 67% cheaper. The savings will pay for the slip in NJ. Mystic CT would 30% less. I asked about Miami and it was only slightly more than NY. I will shop around of course. It was disappointing since I've had BxxT/US for 23 years with no claims.