An eye-popping 75 million Americans enjoy recreational boating each year, and this on-the-water fun indeed comes with risks. Purchasing a good boat insurance policy before engaging in this recreation will protect you in a myriad of ways and is not difficult to obtain.
Boat insurance policies are like a hybrid of a homeowners’ and vehicle insurance policy. Those with larger boats, like yachts, will likely benefit from a policy that closely follows a homeowner’s insurance policy while those with smaller recreational boats will be better served by what is more like an auto insurance policy. At the very least, boat owners will likely need to purchase coverage that is for bodily injuries and property damage. This includes injuries that can happen on the boat and injuries or deaths that might strike other parties as a result of the operation on of the water craft.
Boat owners are recommended to learn the aspects to their boat insurance that differ from their vehicle and homeowners policies. For most boat owners, coverage is designed to be in effect at specific times throughout the year, with insurance coverage generally being in effect during the seasons in which the boat is out on the water. Additional coverage is also offered for any damage that might happen off-season.
A boat can depreciate in value over time, just like a car. The moment you fire up your boat’s engine and start your first cruise it will quickly decrease in its value. This is the time when an “agreed value policy” is most helpful, which enables the boat owner to have his or her craft replaced or reimbursed for its cash value, which was previously agreed upon before the policy was obtained. Market value policies have coverage that is based on the current appraised value of the boat, taking into account depreciation. The premiums for these will tend to be lower.
Boat owners need to determine where, when and how often they plan on using their boat when looking for the right policy. Some policies only cover freshwater locations while others may cover the boat out a distance beyond the seashore. Owners are well advised to learn about the ways that they can lower their costs by enrolling in boating safety courses or by installing safety extras like an engine kill-switch, to name just a couple of options. Find out more today!