Finally, it usually costs less to be insured in fresh water versus salt, so be sure to discuss where you boat with your agent. It is best to have what is known as an "All Risk" policy, which will provide coverage for all types of losses except those specifically excluded in the policy. Typical exclusions may include wear and tear, gradual deterioration, marring, denting, scratching, animal damage, manufacturer's defects, defects in design, and ice and freezing.
You should insure your boat for the amount it would cost you to replace it with like kind and quality. This is called "Agreed Value" or "Stated Value" coverage, and in the event of a total loss, will pay the full insured amount. Beware of policies providing "Actual Cash Value" ACV coverage, which means the value of your boat will be replacement cost less depreciation. Most policies will allow anyone to operate your boat so long as you have given them permission.
There are exceptions, of course, especially with high performance boats or personal watercraft so always read your policy. But beware, too many additional drivers often results in increased premiums. I live in an area where I can't use my boat in the winter, but my lender requires it be insured year-round.
What can I do? You have year-round coverage with a discount for the months your boat is in dry storage. Generally "boats" are considered to be 26' and smaller, and "yachts" are 27' and larger.
Generally speaking yacht coverage is broader and more specialized because larger boats travel further and have more unique exposures. There are two main section s of a yacht policy. Hull insurance is all risk direct damage coverage that creates a very broad insuring agreement. It will include agreed amount hull coverage, meaning all parties agree at the time the policy is written on the value of the vessel and that value will be paid in the event of a total loss.
A true yacht policy also includes replacement cost new for old coverage on partial losses, with the exception of sails, canvas, batteries, outboards and sometimes outdrives, which are depreciated.
Protection and indemnity insurance is the broadest of all liability coverages, and because maritime law is unique, you will need coverages that are designed for those exposures. Such things as Harborworkers and Longshoreman's coverage and Jones Act crew coverage can be critical, as an uncovered loss in this area could run into hundreds of thousands of dollars. That is coverage that primarily protects the lienholder's interest in your boat, paying off the balance owed but nothing more.
If you breach the warranties in the policy, such as promising not to go outside your navigational limits, not to use your boat during the lay-up period, not to use your boat for anything but private pleasure use, and you do NOT have this coverage and experience a loss, you don't get paid for that loss and neither does the lender.
Something went wrong. Please try again later. More from. What Is An Insurance Premium? By Ashley Kilroy Contributor. What Is An Insurance Deductible? By Amy Danise Editor. Information provided on Forbes Advisor is for educational purposes only.
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This compensation comes from two main sources. First , we provide paid placements to advertisers to present their offers. This site does not include all companies or products available within the market. However, we recommend year round coverage. Click here for an overview of our Watercraft Policies. Bodily injury liability — Covers you in the event that you are sued for injuring another person in a boat accident. Comprehensive — Covers you in the event your boat is damaged, stolen or vandalized in an incident other than a collision.
Facebook LinkedIn Twitter. How much damage can I do to others? This article is intended for general informational purposes only regarding non-insurance matters and is not designed to provide professional advice. Tags Aquatics. Related Articles Is your aquatics staff ready for the summer? Life jacket safety tips The top fishing locations in the US Boat navigation Drowning may not look like you think Guide to managing your aquatic risks Poker run safety Tips to winterize your boat Best online weather resources for boaters Keep valuables safe on your boat.
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