Buying A Boat? You Need Insurance Too!
Buying A Boat? You Need Insurance Too!
With the summer winding down, you can bet there will be some year end boat sales! While this time can be exciting if you’re a new owner or if you’re upgrading, you always need to be aware of the insurance side of boat ownership.
Thousands of boating mishaps happen across the country every year. Both on the water and when they are being stored. The main aspect you need to understand is the coverage you have to have in place to be sure your legal liability and personal property obligations are well protected. Here are some things to take into consideration when it comes to insuring your boat.
Understanding the Coverages
There are two types of coverages for damage to your boat. They are Replacement Cost and Actual Cash Value. Replacement Cost is coverage that is really aimed more for boats that are newer. Actual Cash Value is the most widely applicable coverage. This coverage basically does exactly what it says which means the covered amount is what the actual value of the boat is. A boat owner could run into a real problem with this due to the fact that the boat could depreciate at a high rate. This leaves the owner with a potential gap between what is paid on the claim versus what is owed. As a new or current boat owner, the best way to get the most accurate boating insurance information is to speak directly to an independent insurance agent. There could be some limitations especially when it comes to the retrieval and removal of the wreckage.
Coverage Isn’t Just for Summer
Many boat owners think that they only need to insure their boat when it’s on the water for the summer. Nothing could be further from the truth. A boat needs to be insured year-round for damage whether it is in the water or stored for the winter. Some owners drop the coverage in the off months to save money but this is a very dangerous game to play. Even if the boat was being stored on your property in a garage or an outbuilding, it would not be covered. Putting your boat away at a storage facility for the winter is what many boat owners do. The storage facility owner will require you to sign a “hold harmless statement” should something happen to the facility where it is being kept. So as you can see, keeping coverage on your boat year round protects your boat and your pocketbook..
Other Considerations
There are other boat insurance products to cover additional mishaps that could happen with your boat that may or may not be covered under a homeowners insurance policy. For example, coverage for the retrieval of the wreckage, on water towing, lower unit coverage and uninsured/underinsured coverages. It is best to contact your insurance agent to get a clear picture of the coverages available.
Boat ownership can be really exciting and lots of fun. Having the proper insurance coverage plays a big part as well. Boating insurance can be confusing so if you have any questions, call American Advantage IFS today and we can help get you the answers you need!
