What you Need to Know About Insuring Your Boat

It’s important for boat owners to differentiate between marine and car insurance. The two policies differ a little only that boat insurance policy is considerably higher. Even though one goes by sea and the other by land, there are differences beyond the standard cover common to both. Boat and yacht insurance plans can differ between companies that major in marine insurance.
In most states, it’s mandatory to have the standard policy, the watercraft liability insurance policy. This plan offers coverage in case of damage to a person or property due to actions taken on your boat regardless of whether it happened on water or during transportation. Having this type of liability policy is a legal requirement. Each area will have unique needs based on the level of your requirements. It’s always wise to seek advice from an insurance agent on necessities for minimum law requirements.
Any marine insurance policy is comprised of liability and physical damage coverage
Liability Policy offers coverage over legal obligations to third parties due to physical property damage, injury or death while Physical Damage Policy compensates any damage to the boat and its machinery. An All-Risk is the best physical damage plan since it covers any loss, including vandalism, wind, storm, and collision with the dock. It’s always wise to go for a policy that continually covers your vessel even when stored or being transported by trailer.
You should always be able to discern an insurance coverage based on either Actual Cash Value or Agreed Value.
Actual Cash Value considers account depreciation and the state of the boat at the point of loss. This option offers less coverage with a reduced premium.
Agreed Value compensates the listed amount on the policy in case the vessel gets into a total loss.
Other marine coverage includes:
• Medical Coverage: Covers your first aid, ambulance, and other hospital bills and any passengers injured while in your boat in case of an accident.
• Towing and Assistance: Covers emergency assistance like boat towing and emergency repairs while fueling delivery or underway at sea.
• Personal Property: Offers compensation for the loss of personal effects, fishing gears, clothing, and more.
• Uninsured Boater: Though it’s not guaranteed, it compensates you and your passengers for all injuries caused by another boat owner without liability insurance.
The cost of your insurance mainly depends on various factors that range from the boat type (power or sail), Value, length, age, mooring location, intended area of navigation, and the amount of deductible. To reduce your premium, choose a higher deductible since it reduces your area of navigation, install safety devices such as fire extinguishing system in the engine compartment or even a vapor detector in the bilge.
Lastly, compare different quotes and consult marine insurance experts when purchasing boat insurance. Beware that insurance agents outside the department usually lacks professionalism in providing sufficient protection for seagoing captains.