What is Boat is Insurance?
Boat insurance is meant to provide coverage to the boat and its owner in case of an accident. Boats are categorized under motorized vehicles and may include but not limited to, pontoon boats, fishing boats, and yachts as well as jet skis. It is imperative to mention that paddle boats are not covered under boat insurance but may fall under homeowner’s policy.
What Does Boat Insurance Cover?
Boat insurance encompasses the typical coverage and it also has some specialized coverages. Standard boat insurance covers bodily injury, property damage, uninsured boaters, medical bill and collision. Some insurance companies provide specialized coverages which provide cover against risks that are not necessarily covered by the standard policy. While a special coverage is more expensive than a standard cover, it comes with more benefits as outlined below.
Total Loss Replacement
Just like the name suggests, this package replaces the damaged boat with a new one in case of an accident. The primary aim of this package is to put you back in the same financial position you were before the occurrence of the loss. It also replaces the cost of fishing equipment of up to $10,000 for tackle and rods as well as reels.
In most cases, total loss replacement is only available for boats that are not more than one-year-old. Older boats are insured for an agreed value or actual cash value. Customers are advised to verify how their boat insurance policy reads to avoid complications in the event of a claim.
Wreckage Removal Coverage
Under this package, the insurance company indemnifies the customer a reasonable cost for attempted, actual raising, removal or destruction of the wreckage of an insured boat from any loss brought about by physical damage. The limit of liability depends on whether or the not the insured is legally bound to raise, remove or destroy the boat.
Specialized boat insurance coverages are just that; specialized. The choice of whether to go for standard or specialized boat insurance depends on personal preference. You need to make it clear to your agent if you want a standard or specialized boat insurance to ensure that you pay the precise amount for the cover that you have purchased. You also need to know that a standard boat insurance package comes with some additional benefits that are not necessarily charged, thus you need to consult your agent over the same.
