Do You Need Boat Insurance?
Buying a boat opens the door to many weekends of outdoor fun. However before the fun can begin, boat insurance should be considered. Home insurance may offer coverage for boats, but the scope of coverage is narrow.
Liability coverage for a vessel can be instrumental in safeguarding against damages and injuries that take place on or around a vessel. Despite careful planning, accidents happen, and this coverage will help cover some medical expenses or repair costs. Accidents vary, and may involve other boaters, swimmers or water skiers. Property damage of this nature may include other boats, a dock or the environment, such as when fuel is spilled. Some no-fault clauses can provide payment for boat passengers onboard that sustain injuries.
An agreed value policy determines the value of the boat at the time the policy is written. In the event of total loss, depreciation will not factor into the settlement. An actual cash value policy, on the other hand, only pays out the depreciated value of the boat at the time of the damage.
An all risk policy will provide the most coverage, although this is limited to types of loss detailed in the policy. It usually excludes normal wear and tear, manufacturer and design defects or animal damage. Additional coverage may include:
• Specialty equipment
• Consequential damage
• Salvage coverage
Anyone that possesses a boat and plans to take it out on the water, park it outdoors or have it transported should look into the different options regarding coverage. The two most important factors will revolve around how and where the boating takes place. Become familiar with the policies. In the event of an accident, it will need to be known if towing is covered, among other details. Pictures of the damage can help with the claim. Ultimately, boat insurance keeps worry at a minimum and fun out on the water.