Boat Insurance - Peace Of Mind For Your Marine Adventures
As with all vehicles a boat is legible for an insurance policy, under the Marine Insurance Act. While some small boats kept on your premises can be covered by home insurance, Marine insurance can cover not just a seafaring boat but also the goods, as throughout marine history ships have been lost with very expensive cargoes aboard, due to the dangerous nature of sea voyages.
Boat insurance is often cheaper than car insurance especially for a small boat. A comprehensive plan will cover damage to the hull, the machinery and the parts. It is also worth checking if the plan covers theft, injury and any specialist equipment on board like fishing tackle.
Insurance varies a lot depending on the boat. Narrow boats, speedboats, dinghies, yachts, rowing boats and motorboats all have different systems for working out a quote. A fibreglass boat (usually GRP, glass reinforced plastic), like most speedboats, is in a higher insurance band than a wooden or steel boat such as a narrow boat. This is because fibreglass hulls can be damaged or dented very easily while steel hulls for example are very hard to cause any significant damage to. You can get cheaper insurance for diesel powered boats, as they are less likely to explode, and also for using coast guard approved fire extinguishers. A certification in a boat safety course may also reduce insurance.
It also depends on where you intend to sail the boat. The boat will be in a different insurance category depending on whether you intend to sail it in canals (least expensive), rivers, lakes and tidal waters (more expensive) and the ocean.
There are also insurance policies for special circumstances. You can have a boat insured for damage while it is being built, or for a vessel sailing into a war zone or terrorist associated waters, or for specific cargoes such as highly perishable goods that may fail due to delays.
Charter boat insurance basics
Maritime law broadly defines the responsibility of charterboat operator as being responsible for all damages resulting from “negligence”. This all-encompassing definition leaves the operator exposed to the possibility of costly and endless court cases.
This why the value of selecting a charterboat insurance policy which protects your legal rights, property and that ensures damages to your boat are reimbursed, can not be underestimated.
How can you identify which components should be in your policy? First, identify all your business activities and the risks involved in operating your charterboat business. This information will help you decide the types of components, the range, and amount of coverage needed.
Hull and Machinery Clause
This refers to the coverage of the vessel, and all its’ parts. Its’ main purpose is to quickly get your business and boat operational after accidents. If you afford to pick a policy, which covers the following damages your charterboat, can sustain:
· Combustion, sinking or collision of your boat.
· Deck machinery, boat engines, and electronics.
· Coverage for an engine that breaks.
However, the following are not included in the hull and machinery component: Damage to your engine due to inappropriate use or neglect, wear due to every day use of the boat or reimbursements because your engine broke down.
Protection and Indemnity (P&I) Clauses
These clauses enable you to pay passengers and other people who could have suffered personal injuries or property damage caused by your vessel.
The basic clauses you should consider are the following:
Coverage limit
How much is your business worth? A wise agent will tell you, the best coverage limit is one that you can get. It does make sense since marine P&I policy covers you on a per incident basis, not for each person.
Shore excursion
If your insurance policy doesn’t have this clause, your passengers are not insured once they get off your boat.
Crew coverage
You must pay coverage for each crewmember, or you will be liable for the uninsured crewmembers’ injuries in the performance of their duties.
Passenger medical payments
A good clause to have, for you’re protected from irate passengers who even if they have suffered minor injuries, will file for big damages.
Personal effects
The loss of clothes, fishing equipment or cameras might seem a minor inconvenience, but not to the passenger who suffered the loss. This clause ensures that you are properly covered and your passenger’s leave happy.
However, talk to your agent so that you know what items are covered in the personal effects clause and if these are appropriate to include.
Remember, the right charterboat insurance policy for you is one that insures both your boat and charterboat business.
Sail boat insurance basics
When it comes to insuring things those we own against loss or damage we tend to want the very best. After all, we worked hard to get what we have and we all want to make sure that we keep it and if loss or damage does occur then we want a way to replace it. Sailboats are no exception to this rule. As one of the more expensive toys we can own, Sailboats need to be insured just like we would our cars and our homes.
The major difference between boat insurance and car insurance is the amount of coverage a policy provides. This variation is simplistic in nature but can be very difficult if one does not know the very basis of the issue. The basis of sailboat insurance is the different things that can be covered by the different policies and individual companies. Of course all of this varies by the type of boat and the company and location of the boat but that is for another time.
The first thing to remember is the coverage that applies to your sailboat should always apply to the persons on the boat as well. This is called medical coverage and it works to protect you and anyone on the boat in case of an accident or sinking. The insurance company so that yourself and people with you will have their medical expenses pays this for if an accident occurs. The amount of medical coverage does have a maximum and once that amount is met then the insurance company is no longer liable for further expenses incurred. Most often the amount of coverage is more than enough to cover the medical bills, but there are some extreme cases where it far exceeds the insurance company payments.
Next you should look to cover the equipment on the sailboat itself. Car insurance does not have this feature but under sail boat insurance you can choose equipment that will be covered in case of loss or damage. For a sailboat this is most often the sails, anchors, riggings and on board electronics used for navigation. The reasoning behind this type of coverage is the fact that all of these things are necessary for the boat to be properly operated. So, in order to keep your boat in working order than you will need to make sure that those items are covered against loss. Theft from boats is a crime that grows every year so be sure to protect yourself from thieves.
Finally you should consider the liability to the people around you when choosing an insurance policy for your sailboat. If an accident occurs and it is determined to be your fault then you are liable for damages to the other person’s craft and their medical expenses if any. Liability insurance offers coverage for those situations to keep you from having huge expenses.
Motor Boat Insurance Basics
Sailing off into the blue yonder, has the salutary effect of blowing cares and stresses away with the winds. However, before you sail away in your new boat, consider the merits of these questions. Do you have boat insurance? Moreover, are your insurance needs fully met?
Marine insurance defines vessels according certain measurements. A boat is defined as one measured between 16 feet and 25 feet, 11 inches in length. If that’s the length and width of your seaworthy vessel, then you have a boat.
Here are the pertinent components your boat insurance policy should have:
Physical Damage Coverage
The insurer pays you for the repair or replacement of your boat, under the following circumstances: Theft, vandalism, lightning, fire, tornadoes, or hurricanes. Included in this coverage is the boat itself, outboard motors, engines, and your boat trailer.
Excluded from the coverage are the following items, which are not, considered a part of your boat’s operations: camera or video equipment, clothing, fashion accessories, or jewelries, food or beverages, cell phones, stereo equipment, portable television, personal computers or scuba gear. Alternatively, you can ask for separate coverage for these items.
Tip. Read the fine print and so that you know what restrictions could apply to your coverage. Can your boat be stored at your place of residence? Alternatively, should the boat be at your vacation spot? Where does the coverage begin? Some policies specifically limit the uses of your boat and list the exceptions.
Liability Coverage
You’ll find this coverage quite useful. You may also wish you’d paid a bigger premium, when there’s an accident and your boat is liable for damaging another boat, property, or injury.
Uninsured Boat Coverage
This is the marine insurance equivalent of the road vehicle’s uninsured motorist coverage. In this case, your boat’s repairs are covered, in the event the owner of the property your boat collided with has expired insurance or worse, doesn’t have it.
Passenger Medical Coverage
This coverage pays for the medical expenses incurred by people on your boat. This is a must-have clause and the limit can be inexpensive, from $450.00 to $10,000.00, is quite common.
Towing & Assistance Coverage
With this coverage, you’ll get reimbursement for the costs you’ve incurred for availing of emergency services. Examples of these, your vessel breaks down, and a commercial outfit tows your vessel to the port, you’ve paid for delivery to replace your fuel, oil, or engine parts, or for someone to repair your engine.
The bottom line to all this? Be pro-active and arm yourself with knowledge, which among the different policies possible, your boat insurance should have.
Then, you’ll sail confidently into the sun, because your insurance policy will cover you where it’s most necessary.
Why You Need Boat Insurance
Some people simply overlook boat insurance. They think that
nothing bad is going to happen, when in reality, bad things often
happen involving boats!
If you own a boat, you need boat insurance. In fact, many states
now require boat owners to carry Watercraft Liability insurance
before they transport or operate a boat. If your boat has been
financed, your lender will almost always require you to carry
full coverage boat insurance.
Again, most people don’t think anything bad will happen, but bad
things do indeed occur!
Vandalism is one problem that you may encounter. This is
especially true if you dock your boat in a marina. Vandalism can
also occur when you park your boat at your home, or at a hotel
when traveling.
When you shop for insurance, make sure that vandalism is covered
on your policy. Most issuers of boat insurance will only offer
you the Watercraft Liability , but in most cases, you need more
coverage than that! Theft is another possibility. Cars are stolen
all the time , but boats are stolen as well. In fact, stealing a
boat is easier than stealing a car!
Boat insurance should cover you in the event of vandalism, theft,
sinking, fire, storms, capsizing, stranding, collision, and
explosion. Furthermore, the insurance should cover the boat, the
motor, and the trailer used to transport the boat. The boat
should be covered no matter who is operating the boat, as long as
they are legally allowed to operate the vessel.
Boat insurance will typically cover you in the event of
malfunction as well. If something happens to your motor, it
should be covered by your insurance. It should also cover you in
the event that your boat needs to be towed back to shore.
What you are covered for depends on what type of coverage you
purchased through your insurance agent. For this reason, it is
important to know what type of coverage is available. Not all
insurance companies will offer all types of coverage, but they
will offer Watercraft Liability and Watercraft Medical payments.
Watercraft liability covers you just like car liability insurance
protects you in the event of an accident where you are found to
be at fault. Medical payments will cover medical expenses
incurred by you and the occupants of your boat that are the
result of a boating accident in the covered water vessel.
Optional insurance usually includes coverage for reasonable
repairs, emergency services to your boat, motor, or boat trailer,
and wreck removal. Wreck removal is very important coverage to
have. If you boat sinks, it will need to be raised before an
insurance company can access the damages and pay your claim. This
is very expensive, and in most states, the law requires you to
remove wrecked or sunken vessels.
Boats may be luxury items , but they are very expensive luxury
items.
Repairing or replacing a boat may not be something that you can
easily afford , but in most cases, you will find that boat
insurance is quite affordable. However, if you are thinking in
terms of cost, and you think that you cannot afford the boat
coverage, you can be certain that you will not be able to afford
to repair or replace the boat either!
No matter how you look at it, you need boat insurance, even if
you just purchase the watercraft liability coverage. Again, most
states now require this liability coverage for water vessels, and
if the boat is financed, the optional coverage may be required as
well.
Discuss your boat insurance coverage needs with your insurance
agent to determine what coverage is right for you and your boat.
What Are The Different Types Of Boat Insurance Available?
When shopping for boat insurance, you may be surprised to find that there are different types of boat insurance policies available. Many insurance companies will only offer one standard watercraft liability coverage policy, while others will offer optional coverage that you can purchase. In fact, if you have financed your boat, your lender may require you to carry specific optional coverage. There are several different types of coverage that you can add to your policy.
The standard insurance is the watercraft liability insurance coverage which is required by many states. This insurance will cover you in the event that damage is caused to another person or another person’s property by actions taken with your boat – whether it is during transport or on the water. Again, many states now require this liability coverage, and each state has its own requirements as to how much liability coverage you need to have. Check with your insurance agent to find out what you are required to have.
Watercraft medical payments coverage may also be required in your state. This coverage pays the medical expenses, up to a specific amount, for you and any occupant of your boat which results from a covered accident. Even if this insurance is not required, you should definitely consider it. Medical expenses are quite high. If you think that you cannot afford this coverage, think about whether or not you could afford the medical bills you will have in the event of an accident without the coverage.
Wreck removal and pollution coverage should also be strongly considered. By law, if your vessel is wrecked or sinks, you will be required to remove it. If oil or gas leaks into the lake, river, or ocean, you will be fined – just like the big oil companies are fined when they have spills in the ocean! These fines, as well as the wreckage removal and spill cleanup can be quite expensive without this coverage. Don’t make the mistake of thinking that something like this won’t happen to you!
You should insure yourself against uninsured watercrafts as well. This works just like uninsured motorist insurance when you purchase coverage for your automobiles. If someone who does not have insurance – or adequate coverage – collides with your boat on the water, your insurance will pay for the replacement of your boat, or for the needed repairs.
Towing and assistance coverage should also be strongly considered. Getting towed back to shore often costs more than having a car towed to a garage! Especially if you are out in the middle of the ocean! You should also ask about coverage to recover your boat and protect it from further damage after a mechanical failure or an accident. These costs do indeed add up. Again, don’t make the mistake of thinking that nothing bad will happen, and don’t make the mistake of thinking that you cannot afford the coverage. If you can’t afford the coverage, you certainly won’t be able to afford these expenses!
Most insurance policies should cover your boat, the motor, and the trailer used to transport the boat. Liability coverage isn’t the only type of coverage that you need in most cases. You should make sure that you protect your boat, just as you protect your automobiles with coverage that includes theft and vandalism, as well as losses caused by storms, fire, sinking, capsizing, stranding, collision, and even explosions. Talk with your insurance agent to find out what type of insurance is required by your state and what type of coverage they offer. Also talk with your boat dealer and lender to find out what type of coverage you are required to have as well.
The Five Things You Must Know Before Buying Boat Insurance
If you own a boat, you definitely need watercraft coverage.
Too often, people don’t realize that they need coverage for their boats. Some don’t even realize that boat coverage is available. Many know it is available, and they think about it – they just decide that this type of coverage isn’t something that they need. In most cases, they are wrong! You do need boat insurance, and you need to know what you are looking for when you start shopping for the coverage.
Here are five things you must know before buying boat insurance.
1. Many states now require you to carry watercraft liability coverage.
This coverage will should protect you against any damage that you do to other people or other people’s property with your boat. The insurance should also cover you for losses due to theft, vandalism, storms, fire, capsizing, stranding, sinking, explosion, and collision. Call your insurance agent to find out what your state requires, and what their boat insurance policies cover.
2. There is optional coverage that you should strongly consider.
Wreckage Removal coverage is one type of coverage that you should consider. In most places, removal of sunken or wrecked vessels is mandatory, and it is the responsibility of the owner to pay for this removal – which can be quite expensive. This optional coverage will cover those costs. You should also strongly consider coverage that will pay for repairs and mechanical failure, as well as coverage that will pay towing charges should you need to be towed back to shore.
3. Not all insurance companies will cover all operators of the boat that you are insuring.
It is vitally important that you ask about this. Find out who is covered when operating the boat. Some insurance companies will only cover the boat owner as the operator for the rate that was quoted. The rate may go up to cover operators other than the actual owner. Make sure that the insurance agent clearly defines who is covered to operate the boat!
4. Most insurance companies that cover watercrafts offer discounts to people who have taken boat safety courses.
However, each insurance company will only offer the discount for specific courses. Find out which course your insurance company will honor, and make sure you take and pass the course! This will save you quite a bit on your premiums – and you need the safety course anyway! Find out what other discounts you may be eligible for as well. Most insurance companies won’t tell you about the discounts unless you specifically ask about them.
5. You will typically get the best rate from the insurance company that insures your automobiles and your home – but not in all cases.
When you are shopping for insurance, call your current insurance company first – but then check with other insurance companies to see what kind of rate you can get. While getting quotes online is very convenient, you should avoid actually purchasing your coverage online. Call and talk to an agent personally instead, or have them call you. Remember that insurance companies are in competition with each other, and they will work with you to get your business. Let each one know about the lowest rate that you have been quoted, and ask them if they can do better!
Before shopping for insurance, think about the investment that you have made in your boat.
How to Shop For Boat Insurance
If you have a boat, you need boat insurance!
Shopping for boat insurance is a bit different from shopping for car insurance, even though the concept is much the same. Boat insurance will protect you against losses incurred while operating your boat, and while transporting your boat. Most boat insurance includes coverage for the boat, the motor, and the trailer.
When shopping for boat insurance, it is usually best to start with the insurance company that insures your cars and your home. Insurance companies usually give deep discounts to their current customers. Most insurance companies will also give deep discounts to people who have successfully completed a boating safety course.
Ask each insurance company that you contact about such discounts. In most cases, they won’t tell you about the discounts unless you specifically ask.
Don’t settle for the rate that your current insurance company quotes! Just get the quote, and tell them you will call them back soon. Using that quote as your base, you need to see if you can get the insurance cheaper elsewhere.
Using online resources is a great way to start. Get the quotes, and then contact the agents personally to see if you can work out a better deal. Believe it or not, insurance companies will compete with each other for your business. Don’t be afraid to tell them the lowest quote that you have been given so far – make them work for your business!
Know what type of insurance you want and need before contacting any agents. Some agents will try to sell you too much insurance, causing your premiums to skyrocket, while others aren’t as knowledgeable about the insurance needs of boat owners and won’t sell you enough coverage!
You should be protected against losses caused by sinking, fire, storms, theft, capsizing, stranding, collision, and explosion. The policy should cover anchors, oars, trolling motors, fuel tanks, seat cushions, skis, tow ropes, dinghies, tools, canopies, life preservers, and any equipment that is permanently attached to the boat.
The different types of insurance that you need include Watercraft Liability, Watercraft medical payments, Newly acquired watercraft coverage, coverage for repairs, coverage for emergency services, and coverage for wreck removal. In most states, the liability coverage entails Watercraft Liability and Watercraft Medical Payments.
Watercraft liability will protect you in the event of an accident that results from the ownership, maintenance, or use of your boat. It should include bodily injury coverage, property damage coverage, and even legal defense coverage. It should also protect anyone who drives your boat, as long as they were legally allowed to drive the vessel.
Watercraft Medical payments coverage will pay medical expenses up to specific limits for you and the occupants of your boat in the even of an accident.
Other types of coverage are usually voluntary, but should be strongly considered. There is quite a bit that can happen when you transport or operate a water vessel, and protecting yourself legally should be a high priority!
Again, know what you want in terms of coverage before you talk to an agent, and make sure that you get the coverage that you need.
Compare rates online, and then contact the agents that offer you the lowest quotes. Attend a boating safety course, and make sure that you get that discount! Once you’ve found lower rates than the original quote that your current insurance company offered you, call them back and let them know that you found a lower rate. See if they can compete – in many cases they will offer to match that rate, just to keep your business! Again – make them work for your business!
House boat insurance basics
Purchasing a houseboat is guaranteed to give you years of unlimited pleasure. Provided, however that you’ve insured your houseboat properly. Otherwise, you could lose your life’s savings and in the worse case scenario, and be forced to file for bankruptcy.
In the marine insurance industry, houseboats are categorized together with jet boats, ski boats, sailboats, cabin cruisers and party boats as a pleasure boat. For this reason, this kind of coverage is not generally handled by regular insurance companies. You should carefully shop for underwriters who specifically handle these policies.
The first houseboat insurance tenet you must follow is to find a reliable insurer who’ll service your needs. Conduct the search both ways.
· Word of mouth Ask boating friends for insurance recommendations.
· Conduct research on the recommended insurance carriers, the company in-charge of providing you coverage.
The following facts (as provided by the Insurance Information Institute) about your houseboat, such as horsepower, size and age of your boat, the type of craft and where it is used (i.e. moored in a river or hurricane prone area), determines coverage and premium you will pay for your houseboat.
Once that’s done, you can now carefully consider which of these policy clauses can help maximize your coverage and accurately answer your particular needs.
Hull and Machinery Clause
Because your houseboat is placed in the same pleasure boat category as a cabin cruiser, certain rates, coverage, restrictions, and terms will be similar.
Still, there are differences. The function of a houseboat is different from a cabin cruiser. The construction of a houseboat reflects this. They are normally flat-bottomed and designed to navigate slowly through the waters.
Many houseboats are bulkier, since they come equipped with bigger sleeping & living areas, full galley, and enclosed head. A race boat or cabin cruiser is smaller, more seaworthy, and easy to maneuver and built for speed.
Liability and Medical Payments to Others
Pays for bodily injury or property damage you are liable for.
Physical Damage Coverage
Pays for the damage your boat, motor, and trailer sustain.
Uninsured Watercraft Coverage
Pays for personal injury damages you are entitled to recover from the owner or operator who have not insured their vessel.
Medical Payments For The Insured
Covers you and your family’s medical fees, if you sustain accidental boating injuries.
Towing and Assistance
This coverage pays for the expenses you incur when you request a towing service to deliver the fuels and replacements parts, or fix your engine.
What Kind Of Boat Insurance Coverage Do I Need?
Deciding what kind of boat insurance coverage you need depends on many variables. To start off, the type of insurance you need depends on what kind of boat you have. Being familiar with boats you would need to look at the different variations between the various types of boats that are in the world.
For instance, a speedboat capable of high speeds requires a much different type of insurance than a small fishing vessel would because of the potential liability for the insurance company that comes with a speedboat compared to a fishing boat.
Another consideration is the value of the boat. Insurance rates covering a highly expensive craft are going to be higher because the amount that could be lost is much higher. If instead you are watering a small, low cost boat and you want coverage against damage to other boats that you may come in contact with, then the rates would be much lower,
There are many similarities between boat and car insurance. Risk assessment for an insurance company is based on many factors with car insurance just the same with boat insurance. Before an insurance company will offer any kind of coverage for a water craft they will make sure to determine all the possible ways that the coverage could cost them money. To do this they will take the age of the boat, the record of the owner and primary driver, the value of the boat and the area where the boat will he housed for at least six months out of a year.
Just like automobile insurance, there are two distinct types of boat insurance. Full coverage insurance is just like it sounds, it covers pretty much everything including loss due to theft, fire, accident, and many other types as well. There are several clauses involved in full coverage insurance that work to limit the liability that the insurance company will need to cover that these are par for the course with an insurance company. Full coverage insurance is normally mandatory when you finance a boat or a car for that matter. This is in place to protect the bank against loss should anything happen to the boat before it is paid for. Full coverage insurance is the most expensive of all insurance plans as the risk to the insurance company is the greatest with this type of policy.
When financial loss will not be great and a budget is stretched a little thin then you may want to consider liability only insurance. Under a liability only policy, the insurance company is responsible to pay for only damage to other persons or property and the owner of the boat receives nothing. This is the basic insurance required by law for cars and in some areas it is required for boats as well depending on the size and usage of the craft. This type of insurance does not protect against loss of any type and will pay only a specified amount for injured persons in the case of an accident.
You should check your local laws requiring insurance on watercraft to be sure that you are staying within the parameters.