Boat insurance is a unique type of motor vehicle insurance that is engineered to specifically protect boat owners from the financial consequences of damage and/or injury that can occur anytime while participating in the pleasures of boating. In some cases, like car insurance, boating insurance is legally required.
Who needs this type of coverage?
Well, anyone who owns and operates a motorized vessel will benefit. Boat insurance coverage is like a hybrid homeowners’ and vehicle insurance policy. Those with larger craft, such as yachts, will benefit most from a policy is more like a homeowner's insurance policy, while those with smaller recreational vessels will be better off with coverage that is similar to an auto insurance policy. At the very least, boat owners will likely need to buy coverage that protects the policyholder from the financial repercussions of bodily injury and property damage. This includes injuries that happen on the boat and injuries or deaths that occur to other related parties.
Boat owners are recommended to learn about the various components of their boat insurance that differ from car and homeowner policies. For most boat owners, coverage is not designed to be in effect for the entire year. For example, if it is the winter, often a boat will be inactive and stored out of the water. Additional coverage is also available for any damage that might occur during these off-season times, such as vandalism or storm damage.
Another thing to keep in mind when shopping for insurance is how quickly a boat’s monetary value can depreciate. Just like buying a car, the minute the boat’s propeller starts to spin and you begin your inaugural cruise, it becomes less valuable. This is how an “agreed value” policy can be super helpful as this kind of coverage provides the boat owner with the choice to have the boat fully replaced in a manner that was previously agreed upon before the policy was put into effect. On the other hand, market value policy coverage is determined by the presently appraised value of the boat, taking into account its depreciation. This will mean a lower payout, but it can also result in lower premiums too.
Boat owners are well-advised to ponder where, when and how often they will be using their boat when shopping for the right policy. Some policies only cover freshwater locales while others can be designed for bigger boats that proceed out beyond certain distances from the coast, into the open water. Owners should also look into the many ways that can be taken advantage of to decrease their costs, such as taking a boating safety course or by installing safety measures, like an engine kill-switch. Talk with an insurance provider today for more information in finding the best boat insurance policy that fits your needs and your budget.