Boat Insurance: How can you cover damage for your boat?

If you like to take your boat out for regular fishing trips you surely do want that your boat should be in good condition. What if you find out your boat has got stolen or maybe your boat was involved in an accident and wasn't repaired because you don't have boat insurance? Yes, every year several boating accidents occur in America and most of it causes some kind of an injury. Hence, it would really be a sensible idea to get a boat insurance done.

Types of boat insurance

Generally there is only a single type of boat insurance offered by the different insurance companies i.e. the Watercraft Liability Coverage Policy.

Usually almost all state laws require you to have this policy to provide coverage in case of any damage to a person or property because of any action taking place in your boat. To find a good deal, it would be best to get in touch with your insurance agent and seek his advice. There are certain additional coverage that the policy provides. They are:

Medical coverage: You may need medical coverage which generally provides medical expenses up to a certain limit, for you or anyone who is a passenger in your boat, for any accident that occurs and that which is covered in the policy.

Wreck removal and pollution coverage: According to law, if your boat gets involved in any accident or sinks, you will be required to remove it immediately. If there is any leakage of oil and gas from your boat, you will be fined. If you have the wreck removal and pollution coverage, then you will be covered for this type of an incident. Otherwise you will have to pay for it out-of-your-pocket.

Uninsured/underinsured boat coverage: Like in auto insurance, you need to protect yourself from uninsured or underinsured motorist, similarly you also need uninsured or underinsured boat coverage. If you get involved in an accident with another boater who does not have insurance, the damage caused to you because of the accident will be covered by this additional policy.

What is covered under boat insurance?

Any physical damage to the:

• Hull
• Sails
• Machinery
• Furnishings and
• Other equipments used on board

This insurance covers almost all dangers e.g. malicious mischief, damage from collision or sinking and vandalism. However, your needs may vary with the kind of boat or watercraft that you possess. Speak to your agent and find out what your policy covers and what it excludes.

How much boat insurance do you need?

How much boat insurance you will need depends on what kind of boat you have. For small boats and canoes, companies usually provide less coverage. There are separate insurance policies for larger boats like yachts, jet skis as well as wave runners. The size, value and the type of the boat are important factors in deciding the type of insurance required. The kind of water where you are using the boat is also an important factor in deciding the same.

How can you make a boat insurance claim?

Boat insurance claim can be a long process, but nevertheless you will need to make one if your boat happens to get involved in any accident. You may follow the simple steps to file a boat insurance claim.

• Immediately collect detailed information from the other party involved in the accident - their name and address. You must keep this information for the insurance company.
  
  
• If possible take snapshots of the damage as soon as the damage occurs. Your insurance claim might benefit from these pictures.
  
  
• Having estimates of the cost of repair in writing will definitely help. Get as much detailed information as you can after you get your estimates back for your insurance company to understand the nature of damage.
  
  
• You may take the help of a claims representative from your insurance provider who may interview any witness to proceed with the claim process.
  
  
• Your cheque will be delivered once all the forms are filled and all the formalities are done and once your claim is approved.
  
  
• The final settlement that you receive from the insurance company may be used to repair your boat. The amount you receive may likely be equivalent to the lowest cost of repair for your boat.

5 easy steps to follow before buying boat insurance

1. Evaluate the kind of insurance needed. The easiest way to classify your boat is by measuring its length. If it measures up to 26 feet in length it can be insured as a boat. If the measurement goes beyond 26 feet, then it will be categorized as a yacht. Coverage for a yacht falls under a separate plan. You must also calculate the depreciation cost of your boat as well as its value to be able to decide on the right kind of insurance policy.
   
   
2. There is a Boat Owners Association where you can avail different services.
   
   
3. You may get a reasonable quote from some of the special insurance companies. Get in touch with your agents for free advice.
   
   
4. When you have collected information on the different types of coverage, analyze them properly. You can have 2 options - you may either choose actual cash value or agreed cash value when you settle for physical damage coverage. Your premium will be determined depending on the type of coverage that you choose. The liability coverage will protect you in case some one sues you because of an accident. The medical coverage is designed to insure you and anyone else present with you on your boat when the accident occurs.
   
   
5. Get yourself uninsured boat owners' coverage to protect yourself when any damage occurs to you or your boat from an uninsured boat owner. Boat insurance is not a 'must have' but it is advisable that you have one.

Some of you are passionate about your boats. A little scratch will keep you worried until you can fix it. Imagine what an accident would do to your boat if you were not able to afford the cost of fixing it. Boat insurance is meant to help you with such a catastrophe. You can now safeguard your boat and invest in boat insurance to protect yourself from losing it.

Related Forum Discussions

• How to buy a boat policy?
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