Enjoying a get-away with family and friends at the local lake is a wonderful way of making fond memories. However, there is always the possibility of an accident ruining the day. Good boat insurance can be a deciding factor in turning a holiday gone rogue into something far less troublesome. Taking this step can financially protect you and your family from a myriad of liabilities.
When purchasing boat insurance, it is wise to investigate what can be covered and what might not be. Policy coverage is available for all types of boats, be they sailboats, fishing boats, power yachts, pontoons, luxury yachts, personal watercraft and more.
Types of Coverage
Insurance for boats is usually sold as a package with options available as add-ons. Coverage generally comes in two forms. The first is determined by actual cash value, which is the present value minus depreciation. The other option is known as actual value, which is an agreed-upon value when the policy is bought. This latter will have generally higher premiums.
The basic insurance package will cover many things, but it is also a good idea to consider the many options offered, like the removal of wreckage and towing, as well as cleanup services should there be an oil spill, which can be very costly.
Usual coverage includes the following:
• Collision- This is what compensates for the repair or replacement of the boat.
• Property Damage Liability– This pays out for damages to other boats or docks and other damaged structures.
• Bodily Injury Liability– This covers medical bills for those who are hurt or killed, as well as for lost income, pain and suffering and other legal expenses.
• Comprehensive – This pays for damages to your boat that are not the result of an accident, such as theft, vandalism, fire, etc.
• Other Coverage Options– There is supplemental protection for special electronic or fishing equipment, for hurricane and other severe storms, roadside assistance and protection from uninsured boaters.
Good boat insurance provides coverage for almost any type of loss-causing incident. Mandated options vary from state to state, and special coverage may be required if you keep your boat in a harbor. Various discounts are offered to help save money on whatever coverage you might choose.