Just like a house or vehicle, it’s important to purchase a boat insurance plan for your boat in case of accidents or natural disasters such as hurricanes or floods. Specific insurances plans can be purchased for these vessels:
When choosing a plan, make sure it meets the needs of your vessel, as well as your personal and family needs. Factors to consider:
There are two types of boat insurance, “agreed value” and “actual case value,” available to boat owners. An"agreed value" policy covers the boat based on its value when the policy was written. "Actual cash value" policies cover the value of the boat at the time it is declared a total or partial loss. The difference between the two plans is the boat’s depreciation over time, the costs for each vary.
Types of Coverage
Much like other types of insurance, boat insurance can cover different situations. An "all risk" policy will offer the most complete protection. Make sure to clarify what elements are included in“all risk” policies as typical exclusions include wear and tear, marring,denting, animal damage, manufacturer’s defects, defects in design, and ice and freezing. Most policies will cover permanently attached equipment, as well as items like anchors, oars, trolling motors, tools, seat cushions, and life jackets.
Also, consider inquiring about additional coverage options including medical payments, personal effects,uninsured boaters’ liability, and towing and assistance. Also ask about:
Specialized Coverage – Coverage for something specific on your boat like an expensive prop or accessory.
If a claim ever needs filed, make sure you understand what is required. When you purchase your plan, ask about the claims process. Then, keep your insurance information in a secure place at home, but also a copy in a safe, dry place on your boat in case of emergencies.
Dozens of insurance companies offer boat insurance at varying cost levels. If you are looking for competitive pricing, consider asking your fellow boat friends which company has worked for them, then research those online. You can also research insurance carriers at www.ambest.com/ratings. The ratings are an independent judgment of an insurer's financial strength; look for an "A" rating (excellent) or better. State insurance regulatory agencies are also a good reference and can be found online.
Many factors are used to set the cost of a policy, and they vary among insurers. Additionally, discounts can be given.Here are some items to consider:
Content courtesy of DiscoverBoating.
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