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Insights Into Boat Insurance

by fred parson - 24 Aug 2022, Wednesday 201 Views Like (0)
Insights Into Boat Insurance

When looking for boat insurance, one of the first things you'll want to know is how much coverage your policy offers. The answer depends on what kind of risk you want to protect yourself against. If someone flips your vessel while docking at a marina and damages it beyond repair, comprehensive coverage will help pay for repairs and lost income while the boat is out of commission.

Suppose someone gets injured while boating or hits an object that sinks into seawater (like a submerged tree trunk). In that case, collision insurance can cover costs related to damage caused by another object or a rollover accident.

What is Coverage of Boat Insurance Policies?

A boat insurance coverage may protect you and your boat or personal watercraft from liability and harm in the case of a boat accident, including if your boat injures someone or damages someone else's property. A boat insurance coverage will generally cover the hull, machinery, furnishings, or any equipment permanently attached to your boat or personal watercraft. Boat insurance can protect your motorboat, sailboat, or other watercraft if stolen.

Insurance Factors

  • If the boat is used as a form of primary residence
  • Age of Boat
  • Condition (Does it meet US Coast Guard Standards when it was built?)
  • Ownership (more than two owners)
  • Boats without a serial number, but many kits are okay
  • Length
  • Type (Inboard, Outboard, utility, cruiser, bass boat, saltwater fishing boat, performance boat)
  • Where the boat will operate (Ocean, lakes, bays, rivers, Great Lakes)
  • Value
  • Speed/Horsepower
  • Houseboats with no motor

Boat insurance packages

  • Weekenders. If you bring gear onto your boat and remove it after you're done, you can earn up to $1,000 in coverage for fishing equipment, $3,000 in coverage for personal effects, and $500 in coverage for towing.
  • Overnighters. If you spend the weekend or go on short boating trips, you can acquire up to $2,500 in coverage for fishing equipment, $5,000 in coverage for personal effects, and $2,500 in coverage for towing.
  • Anglers using light tackle. If you own a bass or a smaller fishing boat, you can acquire up to $5,000 in coverage for fishing equipment, $2,000 for personal effects, and $2,500 for towing.
  •  Anglers using light tackle. If you own a bass or a smaller fishing boat, you can acquire up to $5,000 in coverage for fishing equipment, $2,000 for personal effects, and $2,500 for towing.

Comprehensive coverage

This type of policy helps protect your boat against damage caused by anything other than collisions, such as theft, fire, and severe weather. It also covers if the ship is damaged or destroyed by an object submerged in water and then resurfaces (such as a sunken log).

Comprehensive coverage will be critical if you own a houseboat and need insurance coverage. Suppose your home base is rendered unusable due to flood damage from an unexpected hurricane or tornado storm in Florida (or anywhere else). In that case, this policy can provide financial relief for repairs and replacements that aren't covered under standard homeowners policies.

Collision insurance

Collision insurance covers damage caused to other people and personal property. As the name implies, this coverage helps protect your boat when it collides with another object or rolls over. It also protects against fire and theft if you have more than one boat in your fleet (but not boats that share ownership).

Collision coverages do not cover loss of use for any duration. However, comprehensive can help make up for this loss by paying out an agreed-upon percentage of what you would have received from your insurer under collision policies if they had been valid at the time of loss.

Liability insurance

Liability insurance covers bodily injury claims and property damage claims made against you by people injured or whose property was damaged by your boat. This type of policy is not the same as collision coverage, comprehensive insurance, P&I (personal and industrial) coverage, or any other forms of boat-related coverage.

Protection and indemnity coverage (P&I)

P&I insurance is a type of coverage that protects the boat owner from liability claims made by people injured or whose property was damaged by the boat. If you purchase P&I, you will be covered for legal expenses if someone gets hurt while on board your vessel. It also may cover medical payments if someone gets hurt while on board your boat (although this is not common).

P&I policies are typically used to protect against financial losses related to personal injury or property damage caused by another party who then sues for damages and reparations in court.

Uninsured boater coverage

Uninsured boater coverage is similar to uninsured motorist coverage, which helps cover the cost of your medical expenses if you're involved in an accident with an uninsured driver. This policy may also help cover costs related to a boating accident caused by an uninsured boater or hit-and-run driver.

For example, if you are injured because another driver didn't have insurance and hit your boat while it was underway on the water. Then this would be covered under uninsured boater coverage and comprehensive physical damage coverage (which covers everything from theft and vandalism to fire).

Boat loan/lienholder coverage

Boat loan/lienholder coverage: If you're making payments on a boat and the lender still has an interest in it, your lender may require that you have this type of coverage. It may help pay off the remaining balance owing on a loan if there's a total loss.

You can get this type of boat insurance through your bank or credit union; however, if it's not included in their policies, they may offer discounted rates at certain times (for example, during the winter months).

Agreed value coverage 

With this policy, you and your insurance company agree on a value for the insured items before insuring them. That way, if you have to make a claim, you'll receive that agreed-upon amount for your covered losses.

This loss is typically included in an all-risk or inland marine policy. It helps protect against theft and vandalism while ensuring that lost or damaged goods are replaced with similar items instead of replacing them with something completely different (such as replacing a $500 stereo system with another one that costs $500).

Conclusion

Ultimately, it's a good idea to compare all types of boat insurance and ensure you're getting what you need. It can help if you also look into how much each policy costs and how long it lasts to find the right fit for your needs.