There are seemingly endless pleasure boat insurance options. Different companies can offer very different coverage options and there can be a lot of details involved so if you don’t already have a good relationship with a boat insurance company the task of determining what boat insurance you need and which policy is best on your own can seem daunting.
Choose a Company with Expertise
Many home or car insurance policies will include some pleasure boat insurance under limited circumstances. The trouble is that even with small boats the insurance may not be adequate depending on the circumstances. There are so many unique claims associated with boating, it really is a good idea to get insurance for your boat through a specialized marine insurance agent with expertise particular types of watercraft and a throural understanding of boaters needs. This is especially true for anyone with a boat over 26 feet in length with powerful engines. If the worst happens, you will never regret qualified advice that ensures you don’t have to pay out of pocket for expenses that could have been covered by your insurance.
Understand the Terminology
In the world of marine insurance there are two options for valuing a boat and you need to understand the difference.
Agreed value – A policy with an “agreed value” will cost a bit more up front but they cover a partial or total loss of your pleasure boat at a certain dollar amount. In other words, there is no process whereby the boat can be said to have depreciated over time.
Actual cash value – A policy with an “actual cash value” will be less expensive but if the boat is considered totaled depreciation will be taken into consideration when determining the amount you will receive. Essentially the insurer will determine what your boat was worth at the time of the incident.
The liability coverage for recreational boating policies is known as protection and indemnity. This will typically include expenses for things like wreck removal, salvage fees or pollution damage.
Avoid Surprises
A reputable and qualified marine insurance company will have a well-educated staff and be equipped to handle special circumstances. You will be able to trust that you have the insurance coverage you require for when and how you use your pleasure boat. If you have any questions, the agent should be able to answer them fully and indicate if there are any exclusions or items that could impact your coverage. For instance, who is allowed to operate the boat?
Additionally, a skilled agent will also be able to give you advice about additional coverage that could be beneficial given your unique circumstances or let you know what boating courses will qualify you for discounted policy rates.
When in Doubt, Call Your Boat Insurance Company
If you have a policy for a recreational or pleasure boat you cannot decide to go into business without adjusting your insurance coverage. If you charge for carrying passengers or use of the boat’s services, you have ventured into the territory of commercial boating enterprise and could render your recreational policy invalid. Some insurance carriers offer temporary charter coverage, but you may have to change to a commercial policy.
If you are looking for reliable advice about your pleasure boat insurance, contact the marine insurance experts at Global Marine Insurance. We have earned our reputation by providing the best boat insurance policies with exceptional customer service that continues long after the policy is sold.
