Buying a Boat? Some Insurance Options...
boat insurance policy can cover physical damage on an Actual Cash Value or an Agreed Amount Value basis

You spot the perfect boat for sale, you need to insure it, and you’re thinking, insurance coverage is the same from company to company, right?

We’ll explain in this article the basic options that are available under boat and yacht insurance policies, and the items that should be considered before choosing a policy. Let’s begin by describing the essential parts of a typical boat or yacht insurance policy: physical damage and liability.

Insurance companies provide physical damage coverage to fix your boat if it’s accidentally damaged or destroyed by a covered peril such as collision, fire, theft, windstorm, lightning or vandalism. This coverage is normally written on an “All Risk” basis. A boat insurance policy can cover physical damage on an Actual Cash Value or an Agreed Amount Value basis.

The primary difference between Agreed Value and Actual cash value policies is how claims are settled following a loss. With Agreed Value coverage, the amount paid following a total loss is the amount shown on your policy, without depreciation. With Actual Cash Value, depreciation is applied on all claims. The amount you receive is the current market value of the boat or damaged equipment at the time of the loss.

Liability coverage pays for damages you or your boat cause to another boat or boater. It also pays for damage such as fire spreading from your boat to another, or if your boat collides with another vessel. The main reason for liability coverage is to personally defend your assets from lawsuits. Since the likelihood of a lawsuit occurring after an accident is high, it is important to get liability coverage included in your quote.

Personal watercrafts are one of the fastest growing segments in recreational boating in North America. Skill and competence are needed to operate these high-performance vehicles safely. Boaters should also have consideration and common sense, so that they do not create a hazard, menace, strain, or a nuisance to themselves, others, the environment or wildlife.

Your boat is doubtless one of your most cherished and valuable possessions. It unfortunately can also be at risk – to accidents, storms and theft. Boat insurance coverage provides security for you, your passengers and your boat, besides giving you peace of mind. Here are some qualities to consider when shopping for boat insurance:

§         Stability – investigate the financial stability of your prospective boat insurance provider.

§         Customer service – select a marine insurance provider with a large system of boat insurance agencies, offices, claim centers, emergency services and cooperative employees to serve you in your time of need.

§         Price – find a balance between peace of mind, financial security and price.

There is no correct response when somebody asks which boat insurance company is the best. There are pros and cons about each insurance company that you will deal with. Boat U.S. has been insuring only boats since they opened in the late 1960s. National Marine Underwriters is another strictly boat insurance company. A division of Progressive Auto, called Progressive Boat, is one of the cheaper boat insurance companies but they are said not to offer nearly as many services and less comprehensive coverage.