Boat insurance before launch day: a Casco Bay checklist
Before the boat goes back in the water, spend twenty minutes on your policy. Lay-up dates, navigation limits and valuation all matter more than most owners realize.
By Michael Sorensen, Marine and farm specialist
Launch day in Maine is a small holiday. The shrink wrap comes off, the bottom paint is fresh, and somebody always forgets the drain plug. Before your boat goes back in at the yard, take twenty minutes to review your insurance. Most of the marine claims we see that end in disappointment come from details the owner never looked at.
Check your lay-up period
Many boat policies include a lay-up warranty, which states the months the boat is expected to be out of the water or out of commission. In Maine that is commonly November through April. If you launch early in April or leave the boat on the mooring into November, you may be operating outside those dates. Some policies reduce or deny coverage for losses that occur during the lay-up period.
If your plans have changed, call us before you launch. Adjusting the dates is usually simple and inexpensive.
Confirm your navigation area
Your policy also defines where the boat may operate. A policy written for Casco Bay and the Maine coast may not cover a trip to Nova Scotia or a delivery run to Cape Cod. If you are planning a longer cruise this summer, we can extend the navigation area for the dates you need.
Agreed value or actual cash value
This is the single most important coverage choice on a boat policy.
- Agreed value means you and the carrier agree on the boat's value when the policy starts. After a total loss, that amount is paid without subtracting depreciation.
- Actual cash value pays replacement cost minus depreciation. For an older boat, the check after a total loss can be far less than you expect.
Agreed value costs more, but for most owners of boats less than twenty years old it is worth it. If your boat's value has changed since you bought the policy, update it before launch.
Review liability and fuel spill limits
Liability covers injuries to guests, damage to other boats and docks, and claims from swimmers or paddlers. With more kayaks and paddleboards on the bay every summer, we recommend at least $300,000 in liability, and more if you carry a personal umbrella. Federal law also makes owners responsible for fuel spill cleanup, which a good boat policy covers separately.
A $500,000 liability limit on a boat policy often costs only a little more than $100,000. It is some of the cheapest protection a boat owner can buy.
Towing, salvage and wreck removal
If your boat runs aground on a ledge or sinks on its mooring during a storm, salvage and wreck removal can cost thousands of dollars. Check that your policy includes towing and assistance, and that salvage and wreck removal are covered in addition to the hull limit, not deducted from it.
Mooring gear, dinghies and electronics
Chartplotters, radar, outboards on tenders and mooring tackle are expensive to replace. Many policies include some equipment coverage, but limits vary. Make a quick list of what you added over the winter and send it to us so we can confirm it is covered.
Pre-launch safety items carriers care about
Bilge pumps and high water alarms
Test the float switch and the alarm. Sinking at the mooring is one of the most common claims we handle in May and June.
Through-hull fittings and hoses
Replace cracked hoses and double clamp below the waterline. A failed hose clamp can sink a boat in hours.
Safety equipment
Life jackets, flares, fire extinguishers and a working VHF radio are required by law and help if a claim is ever questioned.
Commercial fishing owners
If your boat is used for commercial fishing, even part-time, a recreational boat policy will not respond. You need hull coverage written for commercial use and protection and indemnity coverage for crew injuries. We have insured Casco Bay lobster boats since 1964 and can review your coverage before the season opens.
Book a quick review
Send us your current declarations page, your launch date and any changes to the boat. We will confirm your lay-up period, navigation area, valuation and liability limits, and let you know if anything needs to change before you head out. Then all that is left to worry about is the drain plug.
