Boat insurance is a way of protecting your boat from the different dangers that can damage your boat and as a result cause you financial trouble. Depending on the kind of boat insurance policy you choose to buy, you can get coverage on various perils, ranging from physical damage of the boat to the cargo on-board. The coverage you buy depending on your specific needs can save your money to a great extent, if you happen to face such a situation.
How boat insurance protects your vessel?
Insurance is needed to protect ourselves from the different harms. Insuring your boat is very necessary as it is prone to damage owing to the perils of the open waters. Boat insurance is also known as marine insurance, and can cover any type of boats ranging from small sailboats to huge transporting ships. Like auto insurance, boat insurance also provides protection against property damage and liability costs and various other perils that are specially related to boats.
Coverage offered by boat insurance
There are 4 broad types of coverage by which boat insurance offers protection.
1. Bodily injury liability:
This coverage acts in a same way as auto insurance. This coverage pays for the medical bills for injury that is accidentally caused by your boat to others or injury suffered by the onboard members. This covers all medical expenses, pain and suffering, lost wages of the hurt persons as well as costs to defend yourself, if there are lawsuits against you. If you don’t have this coverage, you might be exposing yourself to great financial risks.
2. Property damage liability:
This coverage offers financial protection to you if you cause any property damage during your boating sessions. It can protect against the common beginner’s mistake of forgetting to untie the vessel from the dock, resulting in ripping off a piece of the dock, which can be really expensive. This coverage pays for any damage you cause to others’ boats or property due to collision. It also covers for wreck removal and oil spills as a result of a collision or any other mishap.
3. Collision:
This coverage pays for the damages caused to your own boat due to a collision with any other boat or structures. It reimburses for repairs or replacement depending on the depreciated value; and after you meet your deductibles.
4. Comprehensive:
Your boat is exposed to different weather related perils owing to the dangers of the open waters. This coverage covers for damages caused to your boat other than collision. Weather related perils like rain, hail, storm, and lightning are covered depending on your policy. It also covers fire, theft and vandalism. You may also buy coverage for boat trailer, if you store your boat on land, and need to transport it to water.
For collision and comprehensive coverage, physical damages to the boat are usually reimbursed depending on the following factors:
1. Actual market value
2. Agreed upon value
3. Part replacement cost
Most boat insurance policies cover physical damage to the following:
1. The motor and hull.
2. Sails.
3. Machinery.
4. Furnishings.
5. Personal property and equipment.
Apart from the above mentioned 4 types of coverage, you may also choose to buy additional coverage to cover uninsured boaters, cargo and communicative devices, etc.
Boat insurance policy coverage types and price will vary depending upon the type of vessel you possess. Insuring a luxury yacht will definitely be costlier than a simple inexpensive boat. Thus, depending on your particular vessel and requirements, you should buy appropriate coverage for optimum benefits. Shopping around and comparing prices before buying a policy can save you a lot on your premium costs. Hence, choose the right insurance for your boat, and enjoy sailing in the open oceans with a worry free mind.Blog Category