Boat insurance
Wow! What a sleek beauty"exclaims a young man standing at the dock where your boat is anchored. You soak in the compliments and even invite him to take a little tour of your boat.Next morning, you are shocked to see that your boat has vanished from its moorings.That young man who admired your boat turns out to be a professional thief adept at stealing boats.
Scenario 2: You are enjoying the lovely breeze as you gently steer your boat around the bay. Suddenly, out of nowhere, a powerboat comes rushing at you and although you manage just in time to veer your boat from a total smash up, the port side does get dented quite a bit.
In such scenarios, you will find yourself in a tizzy over your boat, considering the expenses needed to repair a dented boat and the thousands of greenbacks lost when your boat is stolen. It is exactly for such and other unexpected moments that you need boat insurance.
Why you need Boat Insurance
Other than some of the reasons mentioned above, you should definitely apply for boat insurance. Although there may not be any official law that compels you to have boat insurance, you will definitely need it if you are availing of docking facilities at a marina. Otherwise, it is likely that the marina owners will not take responsibility for your boat.
What is generally covered by a Boat Insurance Policy
The main section of your policy provides for coverage for Physical Damage to the boat caused by a vandal, a thief, a storm, another boat, and whatever else mentioned for this cover. You need to opt for one of 2 options : Agreed Amount Value or Actual Cash Value (ACV). The latter is largely determined by the market price of the boat (the cash value), while the former is the amount agreed upon by you and the insurer and which the insurer will pay you in the scenario of a complete loss.
Some features of your boat, such as the dinghies and sails, will come under the option of an ACV.
Your handy cam, portable TV and DVD player, and any other personal items that you carry on board your boat should be covered under the Personal Effects section of your policy.
In the eventuality of you causing damage to somebody else's boat or your neighbor falls off a deck seat and hurts his arm, you could well be entering the portals of a court. Faced with a legal liability, you could well be staring at monumental legal bills. For just such a situation there is what is known as boat insurance liability.
Let's suppose your niece comes running up the ramp to board your boat, slips, and has a bad fall requiring major medical aid.The costs towards her medical care, including ambulance fees and hospital fees, will be covered by the Medical Payments section.
In case another boat collides with your boat and the owner of that boat does not have insurance, you will be reimbursed by the special section of your policy known as Uninsured Boat Owners section.
In case the engine of your boat breaks down and you are left stranded on the water, you will need to call for assistance to tow your boat to the nearest dock. The costs for towing your sailing vessel will be covered by your policy.
Note that not all aspects of a boat insurance policy are necessarily mentioned here. From one policy to another, there are bound to be certain additions or subtractions, depending on a number of aspects.
Some Factors that determine Boat Insurance Premiums
Where your boat is located?
If the area where you permanently dock your boat is located in the pathways of possible hurricanes or in an area which is a playground for storms, your boat will naturally be susceptible to damage. Hence, your premium will be higher than if it was in a calmer region.
What is the function of the boat?
Are you using the boat just for general cruising? Are you using the boat for business-related purposes (such as transport of cargo)? Are you using the boat for taking tourists out for a spin on the lake ? In the latter two cases, the premiums are likely to be more, given the possibility of more potential hazards (cargo, passengers). If you are using the boat for racing or any other adventurous water sport, too, the premiums will be high.
What is the boat type?
Is your boat an ordinary sailing vessel? Is it a powerboat? Is it a luxury yacht? Different boats have different levels of premiums.
What is the age and size of the boat?
These aspects, too, will be factored into your boat insurance policy to determine the premiums to be paid. It should be noted here that if your boat is deemed a yacht in terms of its length, then you need to apply for a separate yacht insurance policy.
Who owns the boat?
If you have taken the boat on a rental basis and it is not owned by you, this will affect the premiums.
What is your experience?
A first-timer who is just at the beginning stages of using a boat may have to pay more premiums than one who is more experienced. Also, if your years at the helm are without a blemish of rule breaking or accidents, you are highly likely to get a good discount on your premiums.
What are the security features for your boat?
It is always advisable to not only install alarm systems within your boat to prevent theft, but also to have general security against potential bad weather. When at its docking spot, ensure that it is securely fastened and anchored. It should not suddenly drift away! The better safety and security aspects that you cover, the lower your premiums will be.
Are you planning to take your boat to another State or across the border?
There is bound to be coverage for physical damage to your boat in such a case, but many other aspects may not be covered at all.
Have you completed a boating safety course?
In some U.S States, it is mandatory by law to successfully complete a boating safety course in order to operate a boat.This is applicable to personal water craft as well (PWC).Every State also has age restrictions for operating a boat.If you have successfully completed an approved boating safety course, you will definitely get a discount on your boat insurance premiums .
Tip: Refer to the website of the National Association of State Boating Law Administrators (NASBLA).Go to the education requirements section and click on the relevant State for information on whom to contact regarding boating education, accidents, etc.
So now that you have been somewhat enlightened by various aspects of a boat insurance policy, it is hoped that you will contact an insurance firm right away! Do remember, though, to request for a sample of your policy in order to know clearly what is and what is not covered . You can consult an independent professional insurance expert before actually putting your signature to the policy and having it formally binding between you and your insurer. DO NOT SIGN if you have the slightest doubt , especially with regard to the ACV and Agreed Amount Value.
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