Sep 3 Smart Tips on Boat Insurance
With boats being about the oldest form of transport still being used, it is not surprising when you realise that boat insurance has been available in varying forms for thousands of years. Under the Marine Insurance Act, a boat is just as liable for insurance as any other type of vehicle. With car insurance plans there is usually an excess to deter people from claiming on small dents and scratches but with boat insurance the excess is considerably larger to avoid the same problem. Overall, the only difference between automobile insurance policy and that for a boat is the amount it is covering.
As soon as you become a boat owner in America, most states will require you to have a boat insurance policy in force. Houseboats are a strange case because although they are not generally moved that are required to have an insurance policy which covers pleasure boats like cabin cruisers, sailboats and ski boats etc. However, a speedboat is in a completely different category to say a fishing vessel owing to the nature of its activities and a higher insurance premium is likely.
Actual Cash Value boat insurance policies cover the cost of the vessel replacement les any depreciation form the time of the boats loss whereas most boat insurance plans will pay for the replacement of the craft, the engine as well as the trailer. Usually when a boat has been damaged beyond repair, its current market rate is calculated using second hand values as a guide. Optional insurance usually includes coverage for reasonable repairs, emergency services to your boat, motor, or boat trailer, and wreck removal. Partial damage repairs on the other hand are calculated by working out the full charge to restore the boat minus deductibles.
A better boat insurance plan is the Agreed Value policy which is where both the vessel owner and the insurance company agree on a value for the boat and should it be written off, then this amount is paid out in full. Another benefit of Agreed value policies is that old items are replaced with new, irrespective of the value of the items being replaced. With most Agreed value policies, the boat insurance company will require replacement value of some items like dinghies, sails, covers, drive units to name a few, before the policy payout value is agreed.
The two chief aspects of boat insurance are legal responsibility, or security and insurance or property loss. When an individual insures his boat for liability, it guards an individual against harm to another person’s assets brought about by the boat. Remember to try and find a boat insurance agent with a good reputation of getting the best possible policies for his clients and a good record in claim settlement. A final piece of advice surrounds the liability section of the policy and the need to ensure you are covered should legal charges be brought against you relating to a matter that is protected under the boat insurance.
