Why do you need boat insurance?

There is always confusion that first time boat owners have; in that they think insuring their homes, means that the boat is included too. The truth of the matter is that this is not true, since the boat has no connection with the home. In fact, a home is immobile, while the boat is mobile. The boat insurance is that policy that will ensure that your new boat is covered in case of an accident, or tragedy.

What are the prices of boat insurance?

Actually, there is no fixed price for boat insurance, as it keeps on varying from one firm to another. To determine the insurance type, there are some factors to be considered. These include:

You own profile

Type of boat you have

Boat engine size

In what the boat will be used in

Size of the boat

One very important point to note is that no matter the cost, you really need boat insurance.

What types of disasters does boat insurance cover?

Being onboard, you may be faced with a number of disasters. The boat policy will cover for:

Theft

Collision

Storms

Fire

Capsizing

What is the working mechanism of boat insurance?

Just like the other insurance policies, it is the owner of the boat to determine which type of coverage he/she needs and to what extent the coverage will work. When a boat is involved in a disaster, the boat insurance will do the following:

If it is the fault someone else, and not the boat owner’s one, yet that someone has no insurance policy, it is the policy of the individual that will cover for the damages.

If the fault is of the boat owner, the insurance liability will cover the damage.

What is the difference between boat insurance from auto and home insurance?

Actually, when we talk of boat insurance, we can view it to be a mixture of auto and home insurance. Just like a home policy, the boat insurance policy will have you covered in case you or somebody else gets an injury while in the boat. The insurance will table for you two options; either to give you the cash that your boat is worth, or give you the amount equivalent to what you will use to fully repair it.

On the other hand, boat insurance s similar to auto insurance in a way because it will cover your property in case it gets faulty due to an accident. People in the boat too will be covered, in case they get injured while in the boat.

What is the coverage area of the boat insurance?

It comes as a surprise or shock for many boat owners, when they find out that their boats are not covered in every place they go. Actually, the majority of boat policies will have something that is termed as navigational warranty. This is a type of warranty that will cover a greater part of inland waters and coastal waters. It is upon you to ask the policy’s coverage area for you to know how far you can go into the waters and still be covered. The larger the area you want the policy to cover, the higher the rates.

Another thing that puzzles boat owners is to which extent the boat can be insured when it is not in water. The answer is simple; it is not the boat insurance policy that will cover it when out of water, but the homeowner’s policy will do. If by chance it is attached to your vehicle, it will be the auto insurance policy to cover it.

Money saving tips when dealing with boat insurance

Insuring your boat is not all that cheap. This means that you will have to look for mechanisms that will ensure some money is saved. The following are some of the tricks you can employ to save some money on your policy each year.

Enroll in a boating class: taking boating classes will ensure that you have knowledge on what are the safety measures to be observed in a boat. Also, in many insurance firms, they offer lower rates to those boat owners who know safety measures when on their boats.

Be specific: most if not all insurance firms are tricky, in that they will tend to sell to you a policy that has much than you really require for your boat. For instance, you may be having a fishing boat, and the insurance company will sell you a policy for a yacht. It is wise to first ask the kind of policy that will cover your type of boat.

Make an extension of the lay-up period: a lay-up period is that time which a boat owner will not be making use of his/her boat, like during winter season. When you make an extension of this time, normally the insurance firm awards you a discount for the months your boat will not be in use.

Make an investment on safety features: when your boat has all the required safety features, the insurance company can award you a discount.

What does boat insurance include?

The policy will cover the boat itself, the boating equipment, boat engine, trailer, liability for property damaged, and medical bills for those injured while on-board.

Conclusion

Though it is not a must for a boat owner to have a boat insurance, it is of sum importance that you have it in order to protect your yourself and your boat which is an investment. The best boat insurance will be that one which will ensure that it best suits the boat’s usage, and the type of boat.

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