7 Factors to Consider When Choosing Your Marine Insurance

view of boat controlsA recent report by the United States Coast Guard shows that about 5,000 recreational boating accidents happen every year. Such accidents leave over 3,000 people injured and over $60 million in boat damage.

You should know that your boat is more than just a watercraft. It creates fun memories with you and your family. So, if you love boating expeditions, ensure that you protect your investment.

You can do this by getting marine insurance. This will ensure that you receive compensation when your boat is damaged. If you’re a boat owner looking to purchase insurance, here are a few things you should know.

1. Decide Whether the Policy You Take Covers Your Boat and Its Accessories

Different things can cause your boat to become damaged when on water. If the damage is because of inclement weather, you may require expensive repairs. When evaluating different marine insurance options, find coverage that will protect your boat from various disasters, whether in or out of the water.

The coverage should also consider the items inside your boat, such as lifejackets and navigation systems. The other important thing that should be included in your coverage is the boat trailer.

If the coverage you plan to take includes the trailer, confirm that the compensation amount can sufficiently replace it.

2. Think About Whether Your Boat Will Be Safe When Not in Use

There are some seasons when it may not be safe to go out with your boat. During this time, you’ll need to store your boat safely.

When selecting insurance coverage, find out whether it can insure your boat when not in use. Remember that locking your boat makes it less likely to get stolen, and storing it in water puts it at risk of storm damage. Therefore, expect to pay higher premiums when your boat is out at sea than when it’s locked up.

3. Check the Type of Water Body Your Insurance Covers

Before you settle on an insurance plan, check whether the area you plan to use your boat is covered by the insurance coverage you plan to take out. Understand that using a boat in some areas puts it at greater risk of damage. For instance, you’re at higher risk of storm damage when boating at sea than at a small lake.

When your insurance agent calculates the insurance premium, they’ll check your driving record. If you have been cited with an incidence of boating under the influence, expect to pay a higher premium.

4. Consider Bundling Your Insurance

If you own a home, car, and boat, check with your marine insurance company whether it’s possible to bundle it with homeowners insurance. This will help you get a discounted price for the insurance policy you plan to purchase. While this is the case, don’t forget to check their boat insurance plan, as some companies don’t offer coverage such as wreck or salvage removal.

5. Understand the Different Boat Coverage Values

When buying boat insurance, it’s important to understand the different boat coverage values. The most common type is the agreed value. This is the value of your boat when you’re insuring it. This is also the amount your insurance company will pay when you seek compensation after damage.

Remember that this price doesn’t include depreciation. While it may sound like a great offer, the deductions are usually high. There is also the actual cash plan. This insurance option will consider your boat depreciation.

This means that when making your claim, the amount you’ll receive will be based on the current price of your boat. Regardless of your damage, you shouldn’t expect to receive more than the actual value of the boat.

When deciding between the actual cash and agreed plans, think about how you use your boat and its condition. Agreed value is best for those with new, large boats, while cash value is best suited for boats with some deprecation.

6. Find Out Whether There’s Any Extra Coverage You Can Take

Based on how you use your boat, you may need to seek extra coverage. There are different options to consider. For instance, if you plan to salvage it, ensure that the policy you already have can cater to the cost of your boat’s insured value.

If you don’t pay attention to such detail, you may pay out of pocket for salvage costs. You should also consider getting fuel spill coverage if your boat has a fuel tank. Remember, you’ll be held liable for any spills on the sea.

The amount you’ll spend for cleanup and fines can be expensive. Such coverage can help cater for costs when accidents happen. Another insurance worth considering is uninsured boater coverage. This ensures you receive compensation when you’re hit by an uninsured boat.

You’ll get coverage for any injury you suffer, along with any other people in the boat.

7. Think About Your Fishing and Watersport Gear Attachment

It’s advisable to receive a fair price for the coverage you plan to get, particularly if you’re a fisher or take part in watersport activities. Such individuals usually attach gears to the side of the boat. This puts the gears at risk of theft or damage after a severe storm.

When taking up your insurance coverage, ensure that it covers all attachments included in your boat, such as anchoring systems, radios, and plotters. This also applies to those who enjoy watersport activities. Whether you enjoy surfing or waterskiing, the last thing you want is to purchase the kits yourself after being damaged by bad weather.

Here’s What to Think About When Choosing Marine Insurance

Being a boat owner can be very exciting and rewarding. However, it would be best to protect your investment in case of damage or theft. You can do this by taking up marine insurance. This type of insurance covers different watercraft, such as yachts, fishing, and puddle boats.

Are you planning to purchase boat insurance? Talk to us today, and we will advise you on an option that best suits your needs.