Boat Insurance Explained
Enjoying a get-away with family and friends at the local lake is part and parcel to many in making fond memories. However there is always the possibility of an accident ruining what is meant to be a time to cherish. Good boat insurance can be a deciding factor in turning a holiday gone rogue into something far less troublesome and therefore manageable. Taking the step in ensuring that you are properly covered can protect you and your family financially from any of a myriad of potentially vacation (and life) destroying liabilities.
What is this coverage?
Boat insurance is just what the name obviously suggests; it covers you and your boat against potential legal claims and other loss-inducing events whether your boat is on land or in the water.
When purchasing good boat insurance, it is wise to investigate what can be covered and what might not be. Policy coverage is available for all types of boats, be they sailboats, fishing boats, power yachts, pontoons, luxury yachts, personal watercraft, and others.
How it functions
Insurance for boats is usually sold as a package with options available as add-ons. Coverage generally comes in two forms. One is determined by “actual cash value,” (which is the present value taking into account depreciation. The other option is known as “actual value,” which is an agreed-upon value when the policy is bought. (This latter will have generally higher premiums)
Different kinds of coverage available
The basic insurance package will cover many things, but it is also a good idea for many to also consider the many options offered, like the removal of wreckage and for towing, as well as cleanup services should there be an oil spill, which can be very costly.
Usual coverage includes the following:
• Collision- This is what compensates for the repair of damages or for the replacement of the boat.
• Property Damage Liability– This pays out for damages to other boats or docks and other damaged structures.
• Bodily Injury Liability– This covers medical bills for those who are hurt or killed, as well as for lost income, pain and suffering, and other legal expenses.
• Comprehensive – This pays for damages to your boat that are not the result of an accident, like theft, vandalism, fire, etc.
• Other Coverage Options– There is supplemental protection for special electronic or fishing equipment, for hurricane and other severe storms, roadside assistance, and protection from uninsured boaters.
Good boat insurance provides coverage for almost any type of loss-causing incident. Mandated options vary from state to state, and special coverage may be required if you keep your boat in a harbor. Various discounts are offered to help save money on whatever coverage you might choose.