Whether it was an impulse purchase or you’re a seasoned sailor, for personal or commercial use, you should know that an asset like a boat also needs to be insured. Boat insurance isn’t the most common kind of insurance. Therefore it’s easy to feel over your head during the process of obtaining one. If you’re lost or confused with all the information on the internet, here is enough information a beginner needs to know.
It may not be a legal requirement to obtain a boat insurance on some waters, but having one is nothing but a sound financial decision.
Just like your house or car, a boat is a capital investment. If there happen to be any damage or loss, let insurance take care of it. You can avoid substantial repair bills that will lead to a significant amount of financial loss.
One of the most common ways a boat can get damaged is due to third party liability. During an event like this, there may or may not be a bodily injury to someone. A liability coverage will protect you from such accidents.
There are two types of policies – Agreed Value and Actual Cash Value. Agreed Value policies reimburse a predetermined value of the boat when damaged while Actual Cash Value reimburses the amount subject to depreciation.
There will be times when minor or major accidents cause bodily injuries during boating. Your boat insurance also includes a medical coverage helping you reduce your medical expenses.
The standard coverage your boat insurer provides – accidental damage like fire, malicious damage, sinking, theft, etc., when your engines are damaged, loss or damage caused by potential risks, etc.
Most people tend to think their auto or home insurances provide full coverage on your boat. Even if they do, it’s mostly less than basic. Having obtained a separate boat insurance will give you the right kind of coverage your boat requires according to your needs.