You need boat insurance to protect your investment, yourself, and your passengers. Here is what the experts have to say about boat insurance:
1. The need for boat insurance
Most home insurance policies do not cover boats. Some of them may include cover for small sailboats, but they generally do not cover larger boats. It is necessary that you get separate insurance for your boat.
2. The difference between ‘agreed value’ and ‘market value’
‘Agreed value’ is a figure that both the insurer and insured agree upon. If you were to have an accident or your boat gets stolen, you will get back the agreed upon amount. ‘market value’ takes into account the depreciation of the boat. As with a car, a boat starts losing value the moment it leaves the lot. Most boat owners tend to go with the ‘agreed value’.
3. Coverage out of the water
Your boat insurance does not cover your boat off-land. At least not generally. Your boat may be protected by your home policy, but you need to clarify the terms of that. When driving and trailing your boat, your car policy will cover any damages or accidents. A good idea is to get an umbrella policy. This will cover the costs that are not covered by your other policies.
4. Coverage in different areas
Your insurance coverage will specify to where it extends. Some policies may only cover you while you remain within US waters. You may not be covered to sail far away from home. You should clarify this with your insurance provider.
5. Ways to save money on boat insurance
Once you have all the specifics of your boat insurance, you can start thinking about how to save money on it. The experts shared these tips:
Be specific in your policy. Make sure you get the correct policy for your specific type of boat. You don’t want yacht insurance on a dinghy.
Add safety features to your boat. You may be eligible for discounts of your boat is fitted with certain safety features.
Go for a boating class. If you are a trained boat driver, you can save on your policy because you will be a safer driver.
There you have it. Consider all these things when you start looking for your boat insurance provider.