You need to understand your boat insurance options and shop around before you sign up. If your vessel is adequately insured, you will be prepared for any disaster and will have peace of mind. Accidents tend to occur when they are least expected and it is a huge relief to know that the loss is covered. Some of the things you need to consider are mentioned below:
How big is your boat and how do you intend to use it?
The length of your vessel will determine the type of policy that you need to buy. Vessels with a total length of up to 26 feet are normally covered by boat insurance. Those that are longer than 26 feet are usually classified as yachts and are covered by yacht insurance. The type of policy you need will also depend on the way you intend to use your boat. Different types of polices are required for vessels used for personal and commercial purposes. Get free, no-obligation boat insurance quotes from the leading insurers now.
What does boat insurance cover?
Physical damage coverage pays for loss and damage due to common risks, such as collision, theft, storms, fire, and sinking. It normally covers the hull and other permanent parts of the boat. Check to see if it covers the trailer. Liability coverage pays for damage caused to structures, docks, or other boats, as well as injuries caused to others. It ought to cover legal proceedings, legal fees, and the payment of settlements.
Your coverage can pay for medical expenses if a person is injured on your vessel. It can pay for injuries caused by the operator or owner of a boat that is not insured. Hit and run incidents can also be covered. Coverage is available for towing and assistance that may be needed if your vessel breaks down at sea and has to be towed to port. You can also cover personal belongings, which are not needed to operate your boat, like cameras, computers, TVs, stereo sets, radio sets, and mobile phones.
Agreed Value vs. Actual Cash Value (ACV) coverage
Agreed Value coverage will pay an amount that has been agreed on for your vessel if there is a total loss. If a partial loss occurs, you can get old items replaced with new ones without any deduction for depreciation.
Actual Cash Value (ACV) coverage pays the replacement cost after deducting depreciation. If there is a total loss, you will get the approximate market value of your boat. The total cost or repair after deducting depreciation will be paid if there is a partial loss.
Does it make sense to ask for a larger deductible?
The deductible is the part of every claim that you agree to pay before the insurer pays for the remaining part of the loss. If you opt to have a higher deductible, you will have to pay a lower premium. While it can be tempting to ask for a larger deductible to reduce your premium, think about whether you can really afford to bear a bigger portion of any potential loss. Get free, no-obligation boat insurance quotes online from the leading insurers.