Buying auto and home insurance are straightforward. Buying speed boat insurance is a bit complicated since types greatly vary from seller to seller. The key when shopping is to get informed. Here are the things that will help make an educated decision:
Ask around
No one can actually tell if an insurance company lives up to the expectations until something goes wrong. Ask people and friends who have applied for claim and know how it went. A good indication of a dedicated insurance company is quick action during claim and giving the policyholders what they really deserve.
You can also check state insurance regulatory agencies and some websites that offer a list of insurance companies and their ratings.
Types of insurance
Boat insurance can be bought as an additional coverage on your homeowner’s insurance but consider buying it as separated policy. While there is nothing wrong with adding it to your homeowner’s insurance, the coverage is quite limited. A separate policy on the other hand allows you to purchase different types of coverage that are very handy when need arise. A separate policy must be the preferred choice no matter how much and how small your boat is.
Actual cash value vs. agreed value
Actual cash value policy costs lesser upfront and only pays for the market value of the boat at the time of loss. In other words, no matter how much is the original cost of your boat, you will only get the amount equal to the boat’s depreciated value.
Agreed value policy costs more upfront but it pays the amount, which you and the insurer agreed upon, regardless of the actual cash value of the boat at the time of loss.
Another policy you should take note of is the total loss replacement which replaces your boat with the newest unit of the same make and model if declared lost regardless of who’s at fault. The total loss replacement policy is available for new boats up to one year old.
Liability
Comprehensive boat insurance includes liability section that serves different importance to boat owners. Such include clean up in case of oil spill caused by the policyholder’s boat and removal or disposal of the wreck. Additionally, your liability coverage may extend to other boats in case you decide to borrow somebody’s boat. This coverage is often referred to as non-owned boat liability coverage.
Types of Coverage
Towing and assistance coverage reimburses the amount spent when you take emergency assistance for your boat if you and your boat are not in immediate danger. Such coverage may include delivery of parts, fuel or oil; towing to a location where the boat can be repaired; and emergency labor. Usually, deductibles are charged when availing a claim for any of these services, so check with the insurance company.
Personal property coverage pays for personal items such as sports and fishing equipment, personal effects and clothing that are aboard your boat. Insurers’ exclusions vary differently so compare different companies.
Medical payment coverage pays the cost of hospital, ambulance, first aid and other cost as a result of injury while onboard the boat.
Do your research so that when you begin calling different sellers, you are properly informed and at least have some basic information about the insurance you need. Try not to worry about the cost of the insurance. What’s important is that you, your boat and your family are totally insured. Take the best coverage you can afford.