Criteria for Selecting Quotes on Boat Insurance
Insurers in the watercraft market say they have many competitors to vie against in selling their policies. They argue, however, that their main fight is the struggle to educate boaters that they need insurance to cover their boats in season and out. Boat insurance requirements are few, so owners need not feel pressured to purchase marine plans.
Insurance is an important part of any protection plan. It’s too often
perceived as a replacement for security precautions. Insurance may restore stolen
belongings and mend damage but there is frequently a deductible that must be
met and there are intangibles that insurance doesn’t cover. The hassle
and the down time usually aren’t compensated. In addition, just one claim
can result in increased rates and a loss history will probably bring about cancellation.
Buying boat insurance can be tough for any boater. This type of policy is not standardized, unlike auto or home insurance – coverage can differ widely for the same boat depending on who sold the policy and how well-informed a buyer you are. You should:
§
Accept that one size does not fit all: each type of watercraft
has its own insurance requirements
§
Understand your options: always ask for an explanation
if you don’t understand the coverage you’re getting or you’re
not sure of what’s covered
§
Know your salvage rights: get a policy that offers salvage
coverage up to the same amount as the boat’s agreed value, and does not
deduct these dollars, or the policy’s deductible, from the total amount
available to repair the damage
§
Be familiar with the two main choices for boat insurance
and depreciation: an ‘Agreed Value’ policy costs more but it
pays more – it will cover the stated value of the policy in the event
of a total loss, while ‘Actual Cash Value’ policies cost less but
only pay up to the actual cash value at the time the boat was lost – depreciation
is factored in on all losses
§
Know your insurer: ask experienced boating friends for
their insurance recommendations and check out the insurance carrier before you
buy.
If you take your boat for repairs at an established boat yard, it is logical to assume that the company has sufficient personal liability, property damage and workman’s compensation insurance in case of damages or injuries. Itinerant repairers may leave out this insurance altogether owing to its expense. You can be sued if anyone gets injured on the job, so ask to see a certificate of insurance before proceeding.
From a court’s viewpoint, the perils faced by a ship are very much
unlike from those a small runabout will encounter, and marine insurance covers
so many special situations that it tends to defy easy rationalization. The most
important concept for someone seeking coverage is known as uberrimae fidei,
or the duty of absolute good faith concerning the contract. The next important
thing is to read the contract to find out your duties and limitations.
You may be entitled for one or more boat insurance discounts, depending on
what kind of boat you own, policy type, coverages purchased and the state in
which the policy is written.
|