Boat Insurance 101
Are you dreaming of summertime fun out on the water?
Warm rays of the sun, sparkling water, the breeze in your hair and that calm that overcomes you when you’re out on the water, leaving your worries behind. Let’s not forget the smiles that spread across the faces of friends and family as they head out on the water for a day of fun on the boat. New Hampshire offers a wide variety of opportunities for boating enthusiasts. If you’ve invested in a boat, protect it and your fun with boat insurance.
Whether you’re renewing an existing policy or purchasing boat insurance for the first time, several things are on boat owners minds when it comes to insurance.
How can I balance coverage with the cost?
We’re all price conscious. We want to get the best products for the best price, so how do you balance getting the right insurance coverage for your needs with the right price? First of all, know the value of what you have and what it’s worth to you. Your boat is more than a motorized vessel you take out on the water; it is an opportunity for your family and friend to have fun, enjoy each other’s company and make long-lasting memories. Several factors that affect the cost of your boat insurance including but not limited to the following:
- The state you live in
- The size and type of boat you own
- The size of the engine
- Your personal boating experience
- How and where you plan to use your boat
- Storage time out of water versus the time in the water
- Whether you choose replacement value or cash value for your coverage
- The amount of your deductible
That’s a long list. People may not realize all the factors determining the cost of your boat insurance. The good news is, your personal insurance advisor can help you navigate the ins-and-outs of boat insurance so you can find the best coverage for the best price. And, best of all, they will be able to quote multiple insurance carriers to find the best boat insurance policy to meet your specific needs.
What’s the difference between Agreed Value and Actual Cash value?
Knowing the distinction between Agree Value (Replacement Value) and Actual Cash Value is important when purchasing boat insurance. Choosing one over the other will not only impact the price of your insurance but will affect your ability to get back out on the water after an accident or damage to your boat. If your policy covers the Agreed Value or Replacement Value of your boat, that means that if you need to repair or replace your boat, the amount of coverage will reflect restoring your boat to new condition or replacing it with a new one up to the agreed or replacement value stated in the policy. Coverage based on the actual cash value means the replacement cost of your boat is equal to the depreciated value.
What does a basic boat insurance policy cover?
For those who’re looking to keep it simple here’s what basic boat insurance policy covers.
Collision damage coverage: for repairs or replacement of damage to your boat
Property damage liability: for damages you may cause to another watercraft, dock or someone else’s property
Bodily injury liability: for injuries to yourself or others as a result of using your boat
Comprehensive coverage: A basic policy may or may not include comprehensive coverage. Consult with your insurance agent to determine whether it’s included or considered an add-on to your policy. Either way, it adds an extra layer of protection beyond collision. Similar to comprehensive auto coverage; it covers damage to your boat other than a collision such as, fire, theft or vandalism. It’s important to discuss the limits of your coverage and exclusions with your personal insurance advisor so you fully understand the details and amount of coverage you will receive under your policy.
What are additional coverages?
There are ways to provide extra coverage to your boat insurance policy. Some people like that extra layer of protection that gives them coverage for additional exposures while boating. Examples of standard policy add-ons are:
- Equipment breakdown and towing
- Wreckage recovery
- Additional fishing equipment coverage
- Personal property coverage
- Uninsured boater coverage
- Are there any discounts available?
Similar to auto insurance rates, there are discounts available such as:
- Bundling your boat policy with your home or auto
- Certification of completing a boater safety course
- Installed boat safety equipment
- Discounts for hybrid or electric boats
Boating offers hours of fun throughout the warmer months. Are you looking for a boat insurance quote? We can help. If you have questions about your current policy, please give us a call.