Many boat insurance policies will cover accidental damage to an outboard or stern drive unit, often as the result of hitting something. But what happens when the unit simply wears out or fails due to some bad luck? BoatUS now offers Mechanical Breakdown coverage for drive units that can be added to any BoatUS Yacht Policy (agreed value) for boats less than 10 years old for as little as $23 a year. The BoatUS insurance policy endorsement, which covers wear and tear, is “triggered” when the prop no longer turns due to a mechanical failure.
“There aren’t a lot of boat insurers that offer this coverage, and when they do, it’s offered at a fixed price,” said BoatUS Vice President of Underwriting Mike Pellerin. “We price ours on a sliding scale that adjusts as the risk changes, meaning you’re likely to pay less over time with BoatUS. There are also no restrictions on using a repair facility of your choice, there are no depreciation adjustments, and we cover ‘wear and tear’, such as when gears are worn away after repeated hard shifting.”
Some of the items covered with the new Mechanical Breakdown coverage endorsement include an outboard’s lower unit case housing, both prop and vertical drive shafts, forward, reverse and pinion gears, sliding clutch and cross pin, bearings and carrier, shift cams and shafts, races, and propellers. For stern drives, also known as inboard/outboards, upper unit covered items include the vertical drive shaft, housing and coupler, gears, bearings, cone clutch, shift fork, cam and follower, shaft assembly, u-joints and yolks. Lower stern drive unit coverage includes the gear case housing, both prop and vertical drive shafts, forward, reverse and pinion gears, sliding clutch, bearings and carrier, races, shift shaft, cam and follower and propeller. A full list of covered parts along with policy exclusions and limitations can be found at BoatUS.com/insurance/mbcoverage. Mechanical breakdown coverage does not apply to any engine internal components.
There is a $250 deductible for each unit, and manufacturer required maintenance must be performed at the required service intervals. Mechanical Breakdown coverage is available in most states and it must be purchased before a boat reaches 10 years from the date of manufacture.
Mechanical Breakdown Coverage is just the latest innovative boat insurance offering from the nation’s oldest and largest recreational boat owners group. Over 45 years ago BoatUS was the first to offer recreational boat insurance policies issued in consumer-friendly, plain English rather than the Old English of Lloyds of London. Today’s unique damage and injury avoidance program offers insureds its own helpful magazine – Seaworthy, as well as a fishing tournament reimbursement program, a cruisers “up front” cruising ground extension option, and the only hurricane damage prevention program to help keep boats out of harm’s way are all BoatUS innovations.
All BoatUS insurance policies offer 24-hour dispatched on road and on water towing services with the largest recreational boat fleet in the nation, full salvage assistance, diminishing deductibles and hurricane haul-out coverage. For more information on Mechanical Breakdown Coverage or any BoatUS specialized marine insurance program, call the BoatUS marine insurance specialists at 800-283-2883.