background tile for boat, yacht, and commercial marine insurance companies

Operating Hours –

8:30 AM - 5:00 PM M-F Eastern

Email Us At

infoapples@orangesstrickwaterlanddock7marineliftinsurancelift.com

Frequently Asked Questions About Marine Insurance

Strickland Marine Insurance Agency, Inc. is not a law firm, risk manager, or insurance company; information on this page is for general industry information and customer convenience only as typical answers to frequently asked questions and does not constitute, endorse, modify, or certify any coverage, policy, endorsement, certificate, binder, legal advice, representation, warranty, guarantee, advice, or provision regarding any customer, insurer, or insurance policy; insurance coverage is constituted only by an active insurance policy evidenced by written binder from an insurer; actual coverage and details vary and depending on actual, in-force insurance policies and their endorsements, subject to all terms thereof; all information here is subject to the terms of actual, in-force insurance policies and endorsements and to Terms of Use.

Is Strickland Marine Insurance an insurance company or an agency, and what’s the difference?

Can I pay my premium with a credit card?

What’s the significance of an “independent” agency?

Why do some insurance companies ask for social security number and driver’s license?

How is my rate or premium determined?

Will my credit score be affected by getting an insurance quote?

Do claims follow me and cause higher premiums?

For what kinds of boats does Strickland Marine offer policies?

Does Strickland Marine offer insurance for self-built boats?

Does Strickland Marine offer insurance for antique boats?

Does Strickland Marine offer insurance for high-performance boats?

What value should I place on my boat policy?

I invested money improving my boat. Can I insure the improved value?

How much liability coverage should I have?

What should I do to prepare for a hurricane?

Is theft of equipment covered?

What if someone borrows my boat?

Am I covered if I tow a stranded boat in from the water?

What does “direct bill” mean?

What is a “named windstorm”?

What is a “windstorm deductible”?

What is a “named-windstorm deductible”?

Is my fishing tackle covered?

Can I put a larger engine on my boat than the manufacturer recommends?

How do the boat insurance policies sold by Strickland Marine compare to the policies sold by major homeowners’ insurance carriers?

Should I get a towing contract with Sea Tow or Tow Boats US even if I have towing insurance?

What’s the difference between Agreed Value, ACV, and Replacement Cost, and which do I have?

Do I pay my premium directly to Strickland Marine Insurance or directly to the insurance company?

Are my electronics covered?

Does Strickland Marine offer referral commission to licensed agents who refer business to Strickland Marine?

What do I do if I got a cancellation notice?

Where can I take my boat?

What if I want to go outside the navigational area covered on my policy?

Does my homeowner’s insurance cover my boat?

Does Strickland Marine represent insurance companies directly, or is it a middle man?

Won’t I get a better deal by calling a company like Travelers or Progressive directly?

Can I finance my boat, yacht, or other marine insurance premium?

How do I add a lien holder to my policy?

How do I get proof of insurance to my bank?

frequently asked insurance questions banner image

Is Strickland Marine an insurance company or an agency, and what’s the difference?

An insurance company (aka “carrier” or “insurer”) insures and underwrites the risks if an insured, transferring and accepting upon itself a limit of financial risk from the insured, with terms and conditions stipulated in an insurance policy, in exchange for a sum of money, often referred to as a premium. The authority and responsibility for determining, processing, assessing, settling, and paying claims pursuant to an insurance policy is solely on the part of the insurance company, AKA the insurer, in conjunction with the insured's participation and obligations under the terms of the insruance policy--and is not on the part of the agent, agency, or broker; insurance payments are subject to losses and claims being covered and valid under the terms of the respective insurance policy.

An agency is a commercial entity that represents one or more insurance companies and receives a commission from the premium, paid by the insured to the insurer, for providing sales and service relating to the insurance company’s insurance policies. The insurance agency helps the customer connect with an insurance company by receiving information from customers for insurance quotes, submitting such information as quote requests to insurers, presenting resulting quotes to customers, placing coverage with insurers, helping insureds explore coverage-related questions and options, processing certificate requests, change requests, cancellations, and renewals, with insurers (where agency involvement is necessary or appropriated), and helping insureds file claims with their insurance companies.

Strickland Marine Insurance Agency, Inc. is not an insurance company/insurer; Strickand Marine Insurance Agency, Inc. is an independent insurance agency that places insurance policies with insurance companies for a commission, both directly and through wholesalers and brokerage markets. As an independent agency, Strickland Marine Insurance Agency, Inc. places policies with a number of different insurance companies, shops among their offerings depending on various factors, and places customers’ policies, where instructed by the customer, with insurers selected by the customers and based on customer appetite, insurer accommodation, and the competitiveness of the offerings. Strickland Marine Insurance Agency, Inc. does not, and is not responsible or obligated to, pay claims arising from or pursuant to an insurance policy; the respective insurance companies that issue and underwrite the policies placed by customers through Strickland Marine Insurance Agency, Inc. provide any and all policies and coverage, are the insurers of the policies and risks included therein, provide all actual insurance coverage pertaining thereto, and are solely responsible for paying all valid claims.

Can I pay my premium with a credit card?

Some of the insurance companies with whom we place policies accept credit-card payments while others do not. If your policy is on a " direct-bill" basis with a participating insurer, and that insurer accepts credit cards, then you would typically be able to make credit-card payments. Please ask our staff about your specific policy and insurer.

What’s the significance of an “independent” agency?

Independent agencies are not tied to one specific insurance company but represent, or place insurance policies with, multiple companies. Captive agents (State Farm is an example of what is commonly referred to as "captive agents"), may only represent one insurer or parent company (some are also allowed to represent one or two partnering companies) and can often be focussed on selling their branded products. Strickland Marine places insurance policies with over three-dozen carriers; so we shop the market for customers and are not beholden to one carrier. This way, we can more objectively help the customer find excellent values.

Why do some insurance companies ask for social security number and driver’s license?

Many insurance companies are moving to a method of rating called “insurance score” (or have already). For those using insurance score, your SSN and DL# factors into whether they can offer you the beter rates. If you do not provide your SSN and DL#, most insurers will/may still quote your insurance, but they will typically offer you a higher rate than might otherwise be available because they cannot confirm your insurance score and must assume conditions about your history that may be less beneficial to your rating than might otherwise be established by a more complete score check.

Who determines my insurance rate and premium–Strickland Marine or someone else?

Strickland Marine does not determine your insurance premium or rate. Each insurance company determines what rate they give us for your particular request when we submit a quote request to them. We request a quote from the insurer(s). We often shop policies or quote requests with multiple carriers, causing the various companies to compete. There is a wide variation among carriers. For the same risk, one carrier may quote $1500 while another quotes only $500 with even better coverage.

How is my rate or premium determined?

Your rate is determined by a matrix of criteria, including the pertinent region, current insurance market/capacity considerations, your personal information, your insurance-claims history, the type, value, and age of your vessel, the home port and navigational area requested for your vessel, the summer/primary mooring location(s), the speed of your vessel, type of vessel and use, sometimes your credit/insurance score, and other factors. Commercial insurance and charter boats is rated differently from pleasure craft. It is very important to always give complete, honest, accurate information to your agent and insurer while obtaining a quote or binding any coverage to avoid unnecessary cancellations, invalidation of claims or coverage, and other problems in processing arising from misrepresentations, concealment, etc. Please proactively speak with us about any specific questions you may have.

Who runs the credit scores, and will my credit score be negatively affected by getting an insurance quote?

The insurers and/or their MGA's or wholesale agents run the credit scores for quotes (we do not); the answer from them to our inquiries about whether credit scores are negatively affected by such have consistently been that they do not.

Do claims follow me and cause higher premiums?

Some claims follow you and can cause higher premiums in the future. Towing claims generally do not, but each carrier is different in what it will consider from your claim history when rating. We sometimes have customers who ask us if they should file a small claim in light of the fact that it might affect future rate increases. We cannot make the decision for the customer as there is no “correct” answer; we file claims as instructed by the insured. Insurers can look at size and frequency. While filing large claims can obviously have adverse affects on a person's premiums and insurability, filing several small claims over any given period can sometimes do the same. Some feel that insurance is best used in a strategic way to only cover large losses that would otherwise impose significant financial hardship on the insured. Others are more of the sentiment that asks, “What is insurance for if not to pay for losses?” We leave that thinking and determination up to the insured, the customer. Think about the costs versus benefits, and make the decision that feels best to you. We are here to help with your needs and file your claims as instructed.

For what kinds of boats does Strickland Marine place policies?

Many, many kinds, from small personal watercraft to large commercial vessels.

Does Strickland Marine place insurance for self-built boats?

Yes.

Does Strickland Marine place insurance for antique boats?

Yes.

Does Strickland Marine place insurance for high-performance boats?

Yes.

What value should I place on my boat-insurance policy?

The value/limit for which you should insure your vessel is not set by us; you choose your own limits/value based on either the cost to replace the boat or the actual cash value, and the limit/value you choose and request is then subject to underwriting approval from the insurer. In setting your value/limit, any improvements that you have made on the vessel and can prove would be among the things you one would typically include in his or her estimates. Condition-and-value surveys by qualified, professional marine surveyors are an important tool in helping you choose your value/limit accurately, especially for used boats, and are often required by underwriters. Most policies also insure electronics on the basis of adding their value into the hull, but this can vary by insurance company.

I invested money improving my boat. Can I increase the insured limit/value based on the improvements?

Typically, yes. Provide us with the receipts and records for the insurer's consideration (they must approve). In some cases, a survey will be required.

How much liability coverage should I have?

We cannot answer that for you. The purpose of liability insurance is to defend you from litigation and pay damages to others for which you are held legally liable, and there is no theoretical limit for which you might be sued or found liable in all situations. Some insureds use their net worth as a guide for determining what they feel their maximum risk of liability loss is. Some are required to carry specified minimum limits by a landlord, marina, lender, or other. You'll need to assess these considerations and instruct us as to your limits.

What should I do to prepare for a hurricane?

Insurance policies generally require, at a minimum, that you take the precautions that a “reasonable and prudent” person would take to protect your property. Some might interpret the scope of action indicated by that language to range from securing your vessel as well as possible where it is to moving your vessel to a ship yard, inland, or out of the damage path of an oncoming storm. Many policies also require or stipulate a specific hurricane plan, which you must follow. Some cover hurricane haul-out expenses to a specified sub-limit (some without a sub-limit). Policies vary among vessels and carriers. Make sure to read your policy and check with us regarding your specific requirements. We've been asked before if an insured should fill his vessel with water in an effort to “weigh it down." Contrary to some colloquial myths, that can actually DESTROY your boat and trailer, leading to potentially uncovered claims as “intentional acts” are generally excluded on any insurance policy. Insureds are obligated to take reasonable and prudent measures. Some place smaller boats in garages while other place larger boats/yachts at boatyards with contracts arranged in advance. Planning ahead is wisest.

Is theft of equipment typically a covered peril on a boat/yacht policy?

The peril of theft is typically covered or not excluded on a boat/yacht policy (though not in all cases), provided that there is evidence of theft, such as visible signs of forced entry, forced removal of an installed item, or related damage to locking devices. “Mysterious disappearance," or where there is no evidence of theft other than the disappearance of an item is typically excluded or not covered. Some policies exclude theft for portable property and electronics while not excluding permanently installed equipment. On many policies, fishing equipment and other portable items ARE covered for theft, but again, there generally must be evidence of a theft other than the simple disappearance of the items alone in order for the coverage to be effective (e.g., visible signs of forced entry or removal). With some insurers (or in certain situations), your policy may have a theft exclusion or require some preventative measure, such as a GPS tracker.

Can I allow someone to borrow my boat?

It depends. Some policies are "premissive use" while others are "named operator." The former allows for the boat to be used by someone with your permission. The latter requires all operators to be approved by insurer underwriters and named on the policy in order for any coverage to apply. Commercial and charter boat/yacht policies always require a named operator for commercial or charter use and may require them for pleasure use, also. Pleasure-boat/yacht policies can be permissive-use or named-operator policies. Injury to the operator (unless you have pertinent crew coverage) is typically not covered, and the operator's own liability exposure may or may not be covered, depending on the policy and the circumstances. Read your policy to learn more, and ask us about this in more detail given the facts of your specific situation.

Am I covered if I tow a stranded boat in from the water?

Maritime law requires boaters to help each other on the water; as such, boat/yacht insurance policies typically anticipate occasional towing of stranded vessels and provides coverage under such conditions.

What does “direct bill” mean?

“Direct bill” means that the insurance company bills you directly, and we do not (typically/generally) receive your payment. The insurance company receives it directly and pays us a commission after receiving your premium. If the premium is made on installments, each installment goes directly to the insurance company, and we receive our portion of commission from the company from each installment as each is processed.

What is a “named windstorm”?

Various policies may vary in the definition of this term, but generally speaking, a named windstorm is a windstorm that has been designated an official name by an authoritative body, such as NOAA. Such storms include, but are not necessarily limited to, hurricanes, tropical storms, and noreasters.

What is a “named-windstorm deductible”?

A named-windstorm deductible is a separate deductible that applies to claims that arise as a result of named windstorms. They typically do not apply to non-named, regular wind damage, but one should always be careful to read his policy as the language could be different from one to another, and a given insurer may use this term differently than others or the norm.

What is a "wind" deductible or a “windstorm deductible”?

A wind or windstorm deductible is the same as a named-windstorm deductible with the exception that a wind or windstorm deductible typically applies to all wind/windstorm-related damage (this can mean any kind of damage arising from a windstorm or wind event), while a named-windstorm deductible applies only to named windstorms.

Is my fishing tackle covered?

Many policies that we place cover fishing tackle up to a specified limit, either as specified fishing tackle or as personal effects. Each policy, however, is different, and some do not cover fishing equipment; so check your policy for specific coverages and discuss your questions and needs with us proactively.

Can I put a larger engine in or on my boat than the manufacturer recommends?

Violating any sort of regulation, manufacturer’s specification, or other similar construct would violate the terms of the average insurance policy and could (very likely would) result in unpaid claims and insurability problems.

How do boat insurance policies place by Strickland Marine compare to marine coverage sold by the major homeowners’ insurance carriers?

Homeowners’ carriers typically offer coverage limited to only certain kinds of vessels and within narrower parameters than marine-specialty insurers. Boat insurance is a sideline to homeowners' insurers since homes and autos are their primary lines. Two of the major three homeowners’ carriers offer ACV policies and do not offer agreed-value coverage. We quote and place marine-specific boat/yacht policies from marine-specific insurance carriers. Marine insurance is our primary line and specialty.

Should I get a towing contract with Sea Tow or Tow Boats US even if I have towing insurance?

Although most policies that we place cover some specified amount of towing (see your declarations page), you may still want a pre-emptive contract with a marine towing company, such as Sea Tow or Tow Boat U.S. Towing expenses can easily surpass limits provided on an insurance policy, particularly if you take your vessel into offshore waters. Towing contracts are typically inexpensive but only cover basic towing services, while extra charges may apply for certain services, such as pump rental.

What’s the difference between Agreed Value, ACV, and Replacement Cost?

See explanation on General Coverage Information page.

Do I pay my premium to Strickland Marine Insurance or directly to the insurance company, and how do refunds basically work?

Most boat and yacht policies that we place are “Direct-bill” policies; with such, you pay your premium directly to the insurance company, and they pay a commission to us after receiving your payments. Some policies are on an “agency-bill” basis. Those premiums are paid to us by the customer, after which, we deduct our commission from those premium payments and send the remainder to the respective insurance company, who is the ultimate recipient of the premium (minus the commission). In either case, if you cancel your policy early and request a refund of any unused portion of the annual premium, any due refund is made by the insurance company (although, in some agency-bill cases, the refund may be first made from the company to us and then from us to you; in such cases, we must first verify receipt of the validated refund from the company before forwarding the refund to the customer). In cases where you trade a boat in or replace a sold boat quickly, if you so choose, your refund can sometimes be credited toward a policy on the new boat. In other cases, some customers choose to use third-party finance companies to finance premiums (we can help refer and arrange third-party premium finance upon request). In such cases, the finance company pays the premium to the insurance company (either via direct bill or agency bill, depending on the policy and company selected), and the customer pays the finance company the agreed payments at the agreed intervals (after an initial down-payment). Because the finance company actually pays the premium to the insurance company in advance in those arrangements, any return premium from the insurance company is due to the finance company. Upon receipt, the finance company forwards any due refunds back to the customer. Some policies have "minimum-earned premium" and/or broker fees, and/or suplus-lines taxes. Those are non-refundable. Any sort of "earned premium" is generally non-refundable.

Are my electronics covered on a boat/yacht policy?

Built-in electronics are typically covered. Portables and mysterious disappearance are typically not covered unless specified and/or unless there are visible signs of forced entry or removal.

Does Strickland Marine offer referral commission to licensed agents/agencies who refer business to Strickland Marine?

Yes. If you’re a licensed property and casualty insurance agent, please contact us to discuss a potential referral agreement.

What do I do if I got a cancellation notice?

It depends on the kind of notice and the reason for cancellation. Pay any unpaid premiums immedaitely, and call us and/or the insurer immediately for further help and answers to your questions. Follow instructions and information on your cancellation notice. We cannot override an insurer's decision/cancellation. For cancellations for non-payment, you must make the pertinent payment within the respective time frame, and call us and/or the insurer immedaitely. We cannot prevent cancellation in all circumstances, but we're generally here to help in what ways we can, even if that means pursing a new, reinstated, or re-written policy. In many situations, cancellations are rescinded by the insurer because the insured takes immediate or timely action upon receiving a notice and calls us to help expedite.

Where can I take my boat?

Your policy will stipulate a navigational area and mooring location(s). Some also contain seasonal restrictions for navigation and/or mooring. Always read your policy to be sure exactly what navigational warranty, mooring(s), and restrictions you have. Navigation warranties and mooring(s) originate with your request/instruction to us and are then subject to the insurer's underwriting approval. Most small-boat policies that we place cover your boat for occasional use in (trailering to) all 48 contiguous United States. This does not mean that you can change the long-term storage location of your boat without notifying us or the insurer, though. Change in long-term storage requires policy and rating changes, so that requires pre-emptive notification. Yacht policies are typically more specific and restrictive in navigational area. Any given policy may exclude certain areas, especially during hurricane season.

What if I want to go outside the navigational area covered on my policy?

Call us in advance to see if the insurer will add the area you desire; depending on the specifics and the insurer, many requests are easily accommodated while others are not or are accommodated for just a one-time trip or a limited time.

Does my homeowner’s insurance cover my boat?

In most cases, no. Homeowners’ policies are standardized forms with very specific, defined coverages. Unless you have a separate boat policy or special endorsement added to your homeowner’s form, homeowner’s insurance typically only covers a 14-foot boat (or less) with a 25 HP engine (or less) while it’s in your garage. A homeowner’s policy will typically not cover your 17-foot bay boat in your garage. It may, however, cover your 12-foot john boat while in the garage. Generally speaking, you need a boat insurance policy to cover a boat or yacht.

Won’t I get a better deal by calling a company like Progressive directly?

Not likely. While some misleading advertisers suggest that you might get a lower rate by calling them “direct”, reality is usually the opposite; “puffery” is not uncommon in the insurance industry. In reality, laws prevent “rebating”, and in almost all cases, you will actually save money and get better service by using a specialist independent agency like Strickland Marine Insurance Agency. We are directly contracted with top insurers-–including some with the “direct savings” slogans–and an independent agency often causes those companies compete for your policy. You get the superior customer service and expertise of a legitimate marine-insurance agency when you call us instead of dealing with a different person every time in a remote, mass-market call center. Best of all, there are no computerized phone mazes for you to navigate at Strickland Marine–-just live people giving you good customer service. If you are unsatisfied, you can speak directly with the President of the agency. We win customers by providing the excellent products, prices, and service, not by using mascots and gimmicky advertising campaigns.

Can I finance my boat, yacht, or other marine insurance premium?

Typically, yes. Many carriers offer in-house financing, and for those that do not, we can arrange third-party premium financing through reputable third-party finance companies.

How do I add a lien holder to my policy?

Call or email your CSR at Strickland Marine Insurance Agency. We will then submit your request and provide confirmation/proof of coverage once receive back from the insurer. You can also submit a request on our Customer Service Page, but calling or emails is fastest and best.

How do I get proof of insurance to my bank?

Call or email your CSR at Strickland Marine Insurance Agency. You can also submit a request on our Customer Service Page, but calling or emails is best.