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More Information About Boat Insurance
By editor | September 20, 2008
We live in world that seems to require insurance for everything but probably the oldest type of cover is that surrounding sea going vessels or boat insurance. A boat, just like all vehicles is liable for an insurance policy, under the Marine Insurance Act. Policies like this, and many other types, come with an excess designed to stop individuals claiming on it for small amounts so it is usually much higher than it would be for a car say. Overall, the only difference between automobile insurance policy and that for a boat is the amount it is covering.
Standard boat insurance is a legal requirement in most American States and should be something that is done as soon as a person acquires the vessel. In the marine insurance industry, houseboats although generally only moored, are categorized as a pleasure boat together with jet boats, ski boats, sailboats, cabin cruisers and party boats. However, a speedboat is in a completely different category to say a fishing vessel owing to the nature of its activities and a higher insurance premium is likely.
Most boat insurance policies should cover your boat, the motor, and the trailer used to transport the boat, but Actual Cash Value boat insurance policies finance replacement costs, minus depreciation at the point of the loss. When the craft is a complete insurance right-off then the second hand value of the boat is used to estimate its market value. It is possible to take out Optional Insurance which will include additional extras such as emergency services to the boat, cover for reasonable repairs, removal, the motor and trailer. Whereas partial damage costs are worked out by calculating the entire charge of the restoration less any deductible items.
A better boat insurance plan is the Agreed Value policy which is where both the vessel owner and the insurance company agree on a value for the boat and should it be written off, then this amount is paid out in full. This type of policy also takes into account that old items have depreciated and have less value but are still replaced with new ones. However, Agreed Value boat insurances policies require a cash value to be given on many onboard items such as sails, outboard motors, dinghies for instance and these will need to be agreed before the policy commences.
Essentially boat insurance covers two distinct areas: that of legal liability and that of damage or loss of property. Liability insurance is there to cover against claims by another person that the insured vessel caused damage or injury to a third party. It is just as important to find a boat insurance agent that looks after his clients by finding the best policies and obtaining the best settlements should they need them. A final piece of advice surrounds the liability section of the policy and the need to ensure you are covered should legal charges be brought against you relating to a matter that is protected under the boat insurance.
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