A boat can lead to many leisurely and fun days outdoors enjoying the water. However, before all the fun can commence, boat insurance is a highly important consideration. Sometimes home insurance can offer limited coverage for boats, but this scope of protection is narrow.
Liability coverage for a boat can be essential in protecting the vessel owner from damages and injuries as a result of accidents that may occur on or around the boat. No matter how careful one might be, accidents do happen. This kind of coverage will help pay some medical expenses or repair costs that often result. The accidents themselves also vary, and can involve other boat operators, swimmers or water skiers. Property damage often includes other boats, a dock or even fuel spillage. There are also no-fault clauses available that can provide coverage for boat passengers onboard who sustain injuries.
A policy that is classified as an “agreed value policy” goes by the value of the boat at the time the policy is obtained. Should there be a total loss, depreciation will not be a factor in determining the settlement. An “actual cash value” policy will only provide payment for the depreciated value of the boat at the time of the accident.
An “all risk policy” is what provides the most coverage, although it is limited to types of loss only specified in the individual policy. It usually will not include normal wear and tear, manufacturer or design defects or any kind of damage sustained due to an animal. Additional coverage often includes specialty equipment, damage that is consequential, towing costs and coverage for any salvage, should it be necessary.
This kind of coverage is recommended for one who owns a boat and plans to use it on the water, to simply park it outdoors or have it transported by towing. The most important considerations will center on how and where the boating is undertaken. It will serve one well to become familiar with these policy types. In the event of an accident, you will need to know if towing is covered, among other important policy details. Remember to always have pictures of the damage when filing a claim.
In the end, boat insurance coverage keeps stress at a minimum and fun to the max!
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