Boat Insurance

What about Boat Insurance?

Owning a boat directly translates to weekends of outdoor fun with family and friends. Just remember that before all good times can start to roll, boat insurance is a primary consideration. And, though home insurance may offer limited coverage for boats in certain situations, its coverage scope is narrow.

Vessel liability coverage can make a world of difference in protecting one against damages and injuries that occur on or around one’s boat. Despite being safety conscious, accidents will happen, and this ind of a policy will help pay for some medical costs or repair expenses.

Accidents can come in many forms and can involve other boat operators, swimmers or water skiers. The kind of damage to property also may include other boats, or a dock or it can have to with environmental damage, like when fuel is spilled. There are some policies with a no-fault clause that can provide compensation to boat passengers who were onboard and sustain injuries.

There are generally two kinds of policy formats for claims payment. One is known as an “agreed value policy,” which is the kind that determines the value of the vessel at the time the policy is created. Should there a total loss event, depreciation will not be a factor in the settlement. An “actual cash value policy,” is different in that it only compensates for the depreciated value of the boat at the time of the accident.

There is also what is known as an “all-risk policy.” This will provide the most coverage, although it will be limited to types of loss that are detailed in the policy. It will usually exclude any normal wear and tear, and manufacturer design defects or damage from an animal. Additional coverage may also include protection for specialty equipment, payment for towing, consequential damage and help with salvage costs.

Anyone who owns a boat and plans to use on the open water, keep it outdoors or simply have it transported would be well-advised to investigate all the different options that are available for coverage. The two most important aspects for coverage will involve how and where the boating takes place. It is important to be fully familiar with these policies types. Should you involved in some kind of accident, you will be well-served in knowing if towing is covered, for example. Keep in mind that when making a claim pictures of the damage are very helpful. In the end, boat insurance keeps stress levels down and worry to a minimum so that you can focus on all the fun out on the water.