The 411 on Boat Insurance
Good boat insurance is a unique variety of insurance that is specifically designed, as is obvious by its name, to protect boat owners from the financial consequences of damage and/or injury that can occur anytime while boating. In some cases, like auto insurance coverage, boating insurance is legally required.
Who Needs It
Boat insurance coverage is not too different from a combo of homeowners’ and vehicle insurance policies. Those with larger vessels, such as big cruisers, will benefit most from a policy that closely follows the format of a homeowner’s insurance policy, while those with smaller recreational craft will be more appropriately covered by a form more akin to auto insurance. Boat owners should at least consider purchasing coverage for bodily injury and property damage. This includes injuries or deaths that happen on the boat and that might happen to other related parties as well.
Boat owners are advised to study the details of potential boat insurance coverage options before signing up for any one policy. For most boat owners, coverage is not designed to be in effect for the entire year, normally less needed during the off-season in which a boat is likely berthed or out of the water. Additional coverage is also available for any damage that might happen during these off-season times.
Another aspect of boat insurance is how quickly a boat can depreciate in its monetary value. Just like buying a car, the minute you commence with your first cruise, it will quickly decrease in its value. This is where an “agreed value” policy can be helpful as it this kind of coverage that provides the boat owner with the ability to have the boat replaced or to be provided with a cash value that was previously agreed upon. Market value policies have coverage that is determined by the presently appraised value of the boat, taking into account its depreciation. This can mean a lower payout, but it also can result in lower premiums too.
Boat owners are advised to figure out when and how often they will likely be using their boat when shopping for the right policy. Some coverage will only cover freshwater use while others can be purchased to protect vessels that head out certain lengths beyond the coast in the open ocean. Owners are greatly benefited in researching the many methods for lowering their premium costs. Examples include boating safety courses, installing safety extras like an engine kill-switch, and more. Speak with an insurance professional for more information in finding the best boat insurance coverage that fits both your needs and your budget.