C-Dory Ownership: Lending & Insurance

P

PIBBoater

New member
Good morning,
I’m looking for advice on the topics of lending and insurance.

Lending
Does the 22’ and/or 25’ Cruiser galley/head qualify as ‘2nd home’ status enabling deductible loan interest on taxes?

Insurance
Is there a preferred insurer that is recommended amongst this group and do you add any specific riders or additional coverage?

Thank you!
 
I think to qualify as a second home for IRS tax deductiblity, a boat has to have sleeping, cooking and bathroom facilities. The CD 25 definitely qualifies, and the CD 22 probably does as well.

To qualify for a loan you need collision insurance at least in the amount of the loan. Liability is a no brainer as well.

For the larger boats, anything over ten years old generally requires a survey to qualify for insurance. Not sure this applies to boats as small as the CD 22.

Progressive is a decent, low cost boat insurer.

David
 
The 2nd home thing also requires that you spend at least 14 overnights per year to qualify. If you use your boat only for day trips (even a lot of them) it doesn't qualify even if the boat is suitably equipped. On my boat the savings from the interest deduction is not worth the trouble. Someone who has a loan on a brand new 25 or Tomcat may think otherwise.

My insurance is through Progressive. It is pretty inexpensive (but I get multiple policy discounts). Where/how you store your boat can affect the rate. Keeping it in a slip usually results in higher rates IME.
 
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