Boat Insurance

Various types of insurance are the same in one way or another. In fact, there is actually little difference between auto insurance and home insurance. But the case of boat insurance is definitely different as there are so many specifications entailed with it. Boat insurance offers coverage for various aspects in marine transportation. For example, a yacht insurance protection may differ according to the insurer’s expertise level, class or group of clients it targets and its underwriting offers.

For starters, it is really helpful to know the different coverage options of boat insurance. There are basically two coverage options of boat insurance policies: the liability and the physical damage. Coverage for physical damage includes damage to the machinery or the exterior of the boat as well as accidental loss. Aside from the engine and the hull, the sails, equipment and other important devices necessary for the operation of the boat are also covered.

On the other hand, liability coverage option of boat insurance will pay for your lawful obligation in part or whole to other parties in case of accidents. This option is also called the protection and indemnity section of boats insurance. To be specific, the liability coverage section will cover for loss of human life, physical injury, property damage of the other party as a result of boat operation or ownership. The liability coverage will provide legal defense assistance too in case you are filed a law suit.

Furthermore, the coverage for physical damage will typically pay for the cost of boat repair resulting from damage due to a specified list of perils. This list of perils include those that are natural, accidental or intentional such as rain, lightning, ocean waves, wind, hail, fire, vandalism, theft, dock collision and collision with floating objects or submerged objects. A boat insurance that is indicated with all risk coverage is a good policy, which is often the choice of most yacht or boat owners. However there are other policies that that do not cover for all types of risks. So be very choosy with your policy. You might even want consider a policy that will cover far more protection for your boat when it’s idle on land.

Remember also that not all policies are made the same. It varies from insurer to insurer. Take note that physical damage caused by wear and tear is excluded. This is because wear and tear is an issue of maintenance responsibility for the owner. So expect a blank stare from you insurer if you are claiming for a wear and tear replacement.

To differentiate and settle claims of physical damage insurance coverage, there are two types of settlement agreements implemented. The first one is called the AGREED VALUE and the other one is called ACV or actual cash value. If the yacht or boat is a complete loss, the AGREED VLAUE insurance policy will cover for the amount stated in the policy. AGREED VALUE will not be influenced by the depreciating value of the boat, equipment and parts with the exception however of highly prone-to-wear-and-tear items as trailers, sails and canvass.

Meanwhile, ACV or actual cash value will cover for the loss based on the present market value of the boat in case of complete loss. The depreciation and of course the condition of the vessel will be accounted. ACV typically supplies lesser coverage than AGREE VALUE does but it’s offered at a minimum cost.

You should also consider the medical payment coverage of boat insurance. Always aim for wider coverage which will include ambulance, first-aid treatment, and hospitalization assistance. Prefer for per-person medical payment coverage than the per-accident coverage so you will get ample medical coverage for other members of the family. It’s always good to ask, so have an insurance policy explain to you the details and of course take time to compare policies. Affordable boat insurance can be a sweet thing for your ear but always bear in mind that the cheaper an insurance is offered, the lesser its coverage will be.