Choosing an insurance policy is never an easy task, especially a boating insurance cover. Most owners have fallen prey to bad insurers because of not differentiating between homeowner’s policy and boat insurance.
Homeowner’s insurance policies are not specific to risk, wreck removal, pollution, environmental damage, and salvage work. However, some homeowner’s policies may offer marine covers. Although the policies may be similar, you may end up on the losing end if not sure what to check. Here are the six tips for finding an insurance policy to fit your boating needs.
Agreed value vs. Cash value policy
Upon approaching an insurance company, you will be given the choice of an agreed value or the alternative, which is a cash value policy. The agreed value policy involves an agreement between the insurer and insured on the boat’s total value. Insurance agents may recommend this for new boats or old model boats. The agreed value is often preferably for new boats. Also, note that the premiums may be high. As the boat ages, you may switch to a cash value policy. Under this policy, the insurance reimburses the exact cash value of a boat.
Personal Property cover
Apart from just the accident cover policy, you ought to consider an extra policy. The personal property coverage. This policy mostly covers yacht and boats. However, always ensure it’s noted down on your contract. The personal property coverage policy covers items on the boat while being loaded or unloaded. Such items could include; fishing equipment, sports, and clothing. However, you may notice variations in terms of cover with different companies.
Emergency Towing & Assistance cover
You never know when your boat halts. Just like all machines, boats may experience mechanical challenges at any time. Therefore, it’s always important to cover for the unforeseeable future. The emergency towing and assistance policy compensates you for the cost you will incur when you have an emergency. These could include; delivery of fuel, oil, parts, emergency labor, and towing to repair service. Also, confirm the deductible that applies to the coverage. Some insurance companies also have the maximum limit for several towing claims.
Medical Payments Coverage
Checking medical payments coverage should be amongst the first things to check. The cover should cover accidents that happen while on the boat or while leaving the boat. In case you engage in activities such as water skiing, please ensure to confirm the coverage applies. Also, ascertain that the coverage includes injuries on you and your family. Although medical payments may be covered, ensure the limit is convenient even in terms of premiums. The medical payment should include the hospital, costs on injuries, first aid treatment, and ambulance. Check on coverage agreement —some insurance policies offer per accident policy or person policy. Per person policy is most preferred; however, per accident, the policy may not be adequate if several people get injured. Per accident involves getting an agreed amount to cover the whole accident damages.
Ensure you know what’s covered. Insurance companies may not necessarily cover all damages that occur. You ought to know what’s covered and what’s not. Physical damage policy normally covers repairs as a result of damages. The best policy to choose would be the “all-risk cover.” This policy covers any repair done on the boat, not limiting to the cause of damage. In the case where the policy is not all-inclusive, ensure to check on what’s covered. Some of the causes covered could include; lightning, fire, loss, vandalism, rain, wind, collision, boats, and hail. In case your boat is damaged by other conditions, you may not be compensated. Also, ensure the cover insures your boat’s location, whether on land or during transporting your boat on land.
Coverage Navigation limits
Boat policies usually cover a certain territorial limit. Most of the company do this depending on the location and chances of damages. During the agreement, the boat owner has to agree to remain within a specified geographical area. However, if the boat owner travels further from the geographical area and the boat gets damaged, the insurance policy will not cover them. This even includes if the policy is All-inclusive.
Take time to compare different companies to find the most reliable boat insurance company.