Tips For Choosing Boat Insurance

Tips For Choosing Boat Insurance



Tips For Choosing Boat Insurance
Unlike home or​ auto insurance,​ boat insurance policies can vary widely from one company to​ the​ next .​
So which type of​ boating insurance is​ best for you? Try these tips .​
They come from experts at​ the​ nation's largest recreational boat owners association,​ BoatU.S .​
• Know Thy Insurer-One way to​ find a​ good insurer is​ to​ ask friends who have had a​ claim in​ the​ past .​
Insurance companies may be good at​ taking monthly premiums,​ but how a​ company lives up to​ expectations when something goes wrong is​ a​ better indicator.
You can also research potential insurance carriers at​ www.am best.com/ratings .​
The ratings are the​ industry's benchmark for assessing an​ insurer's financial strength; look for an​ a​ rating (excellent) or​ better .​
State insurance regulatory agencies are also a​ good reference and can be found online .​
• Homeowner's or​ Separate Policy-Consider buying a​ separate insurance policy for the​ boat,​ rather than adding it​ to​ your homeowner's policy,​ as​ the​ latter often limits certain marine-related risks such as​ salvage work,​ wreck removal,​ pollution or​ environmental damage .​
Whatever amount the​ boat is​ insured for,​ it​ should have a​ separate but equal amount of​ funds available for any salvage work .​
This means that you're compensated for the​ loss of​ your boat and not having to​ pay additional,​ out-of-pocket costs to​ have a​ wreck removed from a​ waterway .​
• Agreed Value vs .​
Actual Cash Value-These are the​ two main choices that boaters face and depreciation is​ what sets them apart .​
An agreed value policy covers the​ boat at​ whatever value you​ and your insurer agree upon .​
While it​ typically costs more up front,​ there is​ no depreciation if​ there is​ a​ total loss of​ the​ boat (some partial losses may be depreciated) .​
Actual cash value policies,​ on​ the​ other hand,​ cost less up front but factor in​ depreciation and only pay up to​ the​ actual cash value at​ the​ time the​ boat is​ declared a​ total or​ partial loss or​ property was lost.
• Customize-Bass boaters may need fishing gear and tournament coverage as​ well as​ cruising extensions if​ they trailer their boat far from home .​
You may want freeze coverage if​ you​ live in​ a​ temperate state because,​ ironically,​ that's where most of​ this kind of​ damage occurs .​
a​ good insurer will tailor your coverage to​ fit your needs so there will be no surprises.




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