Question on the cost for a cat hull [Archive]

Wozencraft

07-08-2007, 04:51 PM

I know that there has been threads about this, but I thought I would ask an insurance guru. At what HP does a cat hull like the Daytona begin to have a major impact on the cost. For example is there a huge difference between a 496HO @ 425hp and a HP500@500hp?
This is a very valid question and I am glad you brought it up. The answer to this question can help many buyers before they sign on the dotted line. So often I hear the "GASPS" on the other end of the line when I mention how much the premium will be on their new boat. :) Most often, when purchasing a new performance boat, buyers do not calculate the insurance expense 'on top' of the boat loan payment. This can put a large strain on peoples finances. Especially when it catches them off guard (after the boat is purchased/loan has funded).
With the introduction above, you might think I would go into great detail discussing the various engine packages and hull designs and give a distinct dividing line where insurance premiums are either reasonable, or not. The answer is, that each insurance company has different rating factors which determine the overall premium. Some companies we offer put a large amount of weight in the past watercraft experience an operator has, for example. In this case we often need the operator(s) to fill out an extensive boat resume. Other companies don't even ask about past experience, but may put a large emphasis on the hull design (whether they will accept or not). These examples are just to give you a short-form answer to the many variables which insurance companies have for writing a policy on a specific boat. Now back to your specific question, as a general rule, which does not apply in all cases; the 496HO (425hp) is the highest hp engine package which keeps a boat in the average range of insurance premiums ($500-$1200 /ann). The exception for this statement is insuring deck boats & v-hulls. We can insure many of these boats with the HP525 for the same reasonable rates.
My best advise to the consumer is to inquire about the insurance premium BEFORE you purchase the boat. When purchasing a performance boat with a 496HO, or larger motor, be cautious with the coverages available from insurance companies that primarily only sell auto insurance. I'm not saying anything negative about any insurance company. However, there are many policies written which do not insure your boat properly, nor your family or passengers the way they ought to be. Your welcome to take a look at another thread I started in the Boat Insurance section which posed some questions about another insurance companies policy. This insurance company has a very good reputation, however the policy in my interpretation has some loop holes which should not be overlooked. Often times people are mesmerized with a cheap price. It often has the "deer staring into the headlights" effect. Some people get a sense that they are beating the system because they are paying less than most. I can't caution you enough about falling into this trap. Without going into any more detail, I can sum it up with this; when insurance shoppers are purchasing insurance, they typically only talk about the price. The price is the main focus. However, when that person has a claim...all they are NOW talking about is what coverages they have. Accidents/incidents & claims happen. NO ONE can forecast the future when it comes to the above. The chances may be slim, but claims happen...just ask some of my clients.
I may have gone into more detail then you requested. You caught me at a good time. :) Did this help?
Thanks for your post!
Devin Wozencraft