Introduction to Boat Insurance
Boat insurance is a special variation of motor vehicle coverage that is specifically engineered to protect boat owners from the financial consequences of damage and/or injury that can occur anytime while enjoying the pleasures of boating. In some cases, like auto insurance, boating insurance is a legally required as well.
Boat insurance is like hybrid homeowners’ and vehicle insurance. Those with larger boats, like a one-hundred-foot yacht, for instance, will be most helped with a policy that closely mimics a homeowner's insurance policy, while those with smaller vessels, such as a small power boat, will be better helped by coverage that is similar to an auto insurance policy. Boat owners, at the very least, should probably look into coverage that is for bodily injury and property damage protection. This will include injuries that happen on the boat and injuries or deaths that might occur to other related individuals.
Boat owners are encouraged to learn about the various components of their boat insurance that differ from their vehicle and homeowners policy types. For most boat owners, coverage is not designed to be in effect for all four seasons, usually being least often utilized during the off-season where a boat is likely stored out of the water. Additional coverage is also available for any damage that might happen during these off-season periods.
Another aspect of this coverage that one needs to keep in mind is how quickly a boat can depreciate in its monetary value. Similar to purchasing a car, once you start your boat’s engine and commence with your first cruise, it will quickly decrease in value. This is where an “Agreed Value” policy can be terrific as this kind of coverage gives the boat owner the ability to have the boat replaced fully with the cash value that was previously agreed upon when the policy was put into effect. What is often referred to as “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 mean lower premium payments as well.
Boat owners should decide where, when and how they intend to enjoy their boat when looking for the proper policy. Some policies will only provide coverage for freshwater locations while others can be offered for vessels that motor out well beyond the coast. Owners are encouraged to seek the many ways that can be exploited to lower their costs like boating safety courses or the installment of safety extras like an engine kill-switch, and so on. Speak with an insurance professional for more information in finding the right boat insurance policy for your needs.