Boating is, without doubt, one of the most relaxing things you can ever do. As you sail in the water you tend to experience the feeling of freedom. All the stress and worries that surround your life disappear when you are in the water. Talking about stress and worries if you have just bought yourself a boat or planning to buy one you need to choose the right insurance plan to shield you against unforeseen stress in the future. Here in this definitive guide, we shall discuss some of the things that you need to consider when it comes to buying marine boat insurance.
Do You Need Marine Boat Insurance?
Before we delve into the topic of buying insurance for your boat lets settle one of the questions that most people have with respect to buying marine boat insurance and whether they need one. The confusion arises as people often believe their homeowners’ insurance policy covers their boat as well. This is partly true. While homeowners’ insurance policy might offer some kind of coverage to your boats it isn’t definitely adequate. Believing in this notion might mean under-insuring your boat and exposing yourself to several risks. Also if you wish to keep your boat in the marine it might be mandatory for you to buy insurance. The only case where you can skip buying one is when your boat is very old and the value doesn’t quite justify what the hefty premium you will pay.
Things to Consider while Buying Marine Boat Insurance
There are a number of things that you will need to consider while buying your boat insurance. While you might think that buying insurance for your boat is similar to that of an automobile there are many things that work much like your homeowners’ policy. Here are a few important considerations you must keep in mind –
• Buy The Right Insurance
You will be surprised to know that there are many people who end up buying the wrong type of insurance for their boats. Either they end up paying more or simply under-insuring their boat. For instance, if you own a sailboat you shouldn’t make the mistake of buying a plan that is meant for a finishing boat. There are more than a dozen categories when it comes to boat insurance you need to get your choice right.
• Third Party Liability
You can be involved in more damages in water than you will ever manage to do while driving a vehicle on the road. Apart from the usual damage to another boat, injuries and property damages, there are several other liabilities that hang on your head. From oil spills to clean up operations and damage to marine life, there are a lot of things that can go wrong and you must be protected against these.
• Physical Damage
You need to be aware of what all is covered under physical damage. There are insurance plans that would could all your risks pertaining to physical damages excluding those that are mentioned in your insurance policy. However, there are plans that often tend to exclude damages that may be a result of lightning, weather events, and vandalism. While these plans may cost you less they expose you to several risks.
• Actual Cash Value or Agreed Value
While buying the insurance you will have to choose between those plans that promise you Agreed Value or Actual Cash Value. In the former, you will be entitled to receive a predetermined amount for a total loss of your boat. Here things such as deprecation aren’t taken into account and hence such policies would have higher premiums as they promise you better coverage. In the case of Actual Cash Value insurance plans, you will receive the current value of your boat in the event of a total loss but you can buy such insurance for a very small premium.
• Auto Insurance
Along with your boat insurance, you will also need to keep an eye on your auto insurance plan to ensure maximum coverage for your boat. Confused? It’s simple when your boat is out of the water and is riding on an automobile it is covered by the auto insurance plan. There may be limitations in your auto insurance plan that will not offer adequate coverage to your boat while in transit but you can buy add-on cover to protect your boat.
• Medical Insurance
Last but not least you should never ignore the medical insurance component when you are buying a plan as not all plans include it by default. Here as well you will need to know the kind of treatment that would be covered including an ambulance for you and third-parties in case of collisions and accidents.
To sum up, buying marine boat insurance can be tricky if you are buying one for the very first time and hence it is advisable that you work with a professional insurance agent. They shall study your needs and suggest the right insurance plan.
Summary – In this write-up, we look at some of the things that you will have to consider when it comes to buying marine boat insurance.