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Boat Insurance

BOAT Insurance – Customer-friendly

Insuring a boat of any size is no straightforward task. New owners must consider a number of variables when it comes to exactly what type of coverage they will benefit from. If you have recently purchased a boat or are planning on buying one soon, then take a look at some of the factors that will determine what kind of coverage you need and how you can lower your premiums.

Factors for Insuring a Boat

Insurers will look over variables such as the age and value of your vehicle when crafting your policy. Some of the other issues that will be taken into consideration include the horsepower of the engine, where the boat is stored, the classification of the boat, if it meets US Coast Guard safety standards, and where it will be used. Boats that operate farther out in the ocean often need their own special insurance.

Is My Homeowners Insurance Policy Adequate?

One mistake that many new owners make is believing that their homeowners insurance policy will adequately cover their boat. While these policies may provide limited coverage for a boat that is stored on your property, it will rarely be enough. Boats are generally considered a valuable asset, and this means that they must specifically be added to a home insurance policy. As soon as the boat is off of your property it will most likely no longer be covered.

Agreed Value or Actual Cash Value

The two most common types of boat insurance include agreed value policies and actual cash value policies. An agreed value policy is initially more expensive, but it does not take depreciation into consideration. Whatever the value of the boat was when you purchased it is the amount you will receive if it is damaged or stolen. An actual cash value policy costs less initially, but it factors in depreciation. As a boat ages, many insurers will insist on an actual cash value policy.

All boat owners hope that they will never have to make a claim, but having a comprehensive policy in place will ensure that they recover some or all of their losses after an accident or injury.