Boating is not just a hobby; it is a way of life. Maritime enthusiasts take their activities seriously. The boat and required equipment represent a huge financial investment, and the activities that take place on a boat represent a huge safety risk. All of these things add up to necessitate the purchase of adequate insurance for boats of all types.
Insurance and a Boat Purchase
Buying a boat is expensive. Most people who make a boat purchase must obtain traditional bank financing in order to pay for the purchase. Those who obtain a loan in order to purchase a boat will be required to purchase insurance for the boat as a part of their loan agreement. This is to protect the lender’s investment in the loan collateral, which is the boat itself. Many boat owners make the mistake of assuming that a generic insurance policy provides adequate protection.
Those who purchase a boat for cash are not subject to these requirements. Too often, these boat owners make the mistake of assuming that their boat falls under the umbrella of their homeowner’s insurance policy, and is thereby adequately protected.
These are both big when considering insurance for boats.
Choosing a Policy
It is important that you obtain a separate insurance policy for your boat. Do not depend on loan gap insurance, homeowner’s insurance, or vehicle insurance to provide coverage for your boat. You will need to research prospective insurance policies and choose the policy that provides the best coverage for a fair and affordable rate. An insurance policy should include:
Liability Coverage: This is of utmost importance. Liability coverage will provide you with protection should a passenger become injured on your boat. You will also be protected in the event that damage or injury occurs as the result of a boating accident.
Personal Injury Protection: This component of insurance for boats provides financial protection for injuries, including medical payments and loss of income reimbursement.
Collision and Comprehensive Coverage: Similar to the coverage offered by your car insurance company, these provide protection for damages and repairs that may be necessary due to an accident.
Speak to a Boat Insurance Specialist
When choosing insurance for a boat, it is important to speak to a specialist who is familiar with boat insurance. Specialists will be able to provide you with detailed information regarding each boat insurance policy and review options. Additionally, a specialist will inform you of any possible restrictions, such as layup periods wherein the insurance is not active or valid. Contact an insurance company that specializes in insurance for your boat like Global Marine Insurance Agency to get started today.