Modern-day ancient mariners

The reasons people become collector boat owners are as varied as the owners themselves. Is it for the love of the vessel itself, bragging rights as a participant in an expensive hobby or simply to net a little cash in the business of renting out these unique craft?

Collector boats, as they’re sometimes called, are featured in events from antique boat shows like Concours d’ Elegance, which is known as one of the premiere venues for exhibiting vintage crafts from the 19th and 20th centuries, to Rendezvous, which promotes the preservation of classic and vintage boats.

So, what is a collector boat anyway? Typically a collector boat falls into one of three categories: historic, which includes boats built prior to 1918; antique or classic, which encompass boats circa 1919-1942, or vintage, built between 1943 and 1968.

Unlike other collector items, the age of the boat alone is enough to qualify it as a collector boat, despite its condition, although its condition can come into play renting it, exhibiting it and whether it can obtain coverage as a collector boat. These vintage craft can be power or sail and differ from typical boats in one noteworthy way: they are almost always made of wood, hence their nickname “Woodies.”

During the eras in which collector boats were made, wood was virtually the only resource available for builders. Prior to 1942, steel was only a rare alternative on larger vessels. During World War II, due to rationing of supplies and fuel, decreasing incomes and pooling of resources for the war effort, construction of all pleasure craft was suspended. All available resources were used to build boats for the military. As such, many pleasure craft manufacturers obtained government contracts and started producing war vessels.

Owners of pleasure craft were affected as well. Civilian vessels of various shapes and sizes were “pressed” into naval service during the war. These craft that would ultimately include more than 4,000 boats and ships, that were either loaned to the Navy, or bought outright from the owners.

Most were returned to their owners or sold when they were deemed of no further use to the Navy. Pat Pending was one such vessel. She was taken by the Navy Dec. 9, 1941, for patrol duty, tending the submarine net underneath the Golden Gate Bridge. After completing her tour in 1944, Pat Pending was re-purchased by the owner for $100.

Before fiberglass
After the war, marine architects and builders introduced new designs and utilized materials, such as fiberglass, that were not available prior to 1942. Fiberglass, which was considered an experimental design in the 1940s, was used very rarely at that time, but came into play after World War II when boat manufacturers were exploring options for other buoyant materials. Thus, collector-type boats represent designs and construction methods that were unique to their respective era.

No matter which school of thought one subscribes to or whatever the reason one becomes entrenched in the classic boat community, having the right insurance coverage for is critical.

Today, it is estimated that there are more than 10,000 wooden boats in the U.S. alone. Few markets specialize in wooden boat insurance due to a number of factors including cost of repair of wooden boats and lack of knowledge in wooden boats and their specific needs. While some of the U.S. markets do also write international accounts, this type of coverage is even more difficult to get. So now more than ever, it is important to be well educated on the particular needs of the collector boat market and know which insurers are capable of meeting them.

Pre-qualifying prospects
Producers should address the following:

1. Obtain a Condition and Valuation Survey. (A current out-of-the-water survey.)

2. Experience. Find out if the owner has owned boats similar in size or wooden boats before? Do they know how to maintain it? Carriers look for a minimum of five years prior experience.

3. Purchase price. Make sure they didn’t pay below market price for the boat.

4. Intended use. Be wary of folks living on boats. They are typically not collectors and may use the boat for an inexpensive residence.

What to look for in a good program
1. Number of years the collector program has been in existence.

2. Competitive pricing calculated without using the traditional “old boat” formula (i.e., the rate is developed based on the difference between market value and replacement cost.)

3. Higher deductibles and credits for experienced owners to keep rates competitive.

4. An underwriter who provides hull coverage on an agreed value basis, separate limits for oil pollution and full protection and indemnity liability coverage.

Jim Hackworth is president of Hackworth & Co. Insurance Brokers Inc. His wooden boat program is written by Markel American (www.markelamerican.com). For more information visit www.woodenboatinsurance.com