Boat Insurance

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. Under the Marine Insurance Act, a boat is just as liable for insurance as any other type of vehicle. Boat insurance policies, just like vehicle insurance come with an excess except the excess for a boat is usually quite a substantial sum which is done in order to discourage small claims which is often the case with cars. There is little difference between the two types of policy except the amount of cover provided with boat insurance is considerably larger.

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. Houseboats are a strange case because although they are not generally moved that are required to have an insurance policy which covers pleasure boats like cabin cruisers, sailboats and ski boats etc. 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. Usually when a boat has been damaged beyond repair, its current market rate is calculated using second hand values as a guide. Optional insurance usually includes coverage for reasonable repairs, emergency services to your boat, motor, or boat trailer, and wreck removal. Where there has only been limited damage to the vessel, partial damage repairs include the restoration less any items that can be deducted.

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. Agreed amount value policies also replace old objects with new ones, exclusive of any assumption for depreciation. The majority of agreed amount value boat insurance policies necessitate actual cash value on specific destroyed assets like sails, protective covers, batteries, dinghies, trailers and aged outboard motors, lower drive units etc.

Most boat insurance policies can be broken down into two main areas; value of the property lost or damaged and that of liability. Liability insurance is there to cover against claims by another person that the insured vessel caused damage or injury to a third party. Remember to try and find a boat insurance agent with a good reputation of getting the best possible policies for his clients and a good record in claim settlement. A final piece of advice surrounds the liability section of the boat insurance 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.