Boat Insurance-Protection for Your Boat

Must of us work hard to acquire investments throughout our life. Such investments include vehicles, homes, jewelry, and boats. Boats are a great investment to enjoy as a hobby and to relax, especially for those who live near a lake or ocean. All investments need to be protected.

Such protection is available in many forms. Insurance is among the most common. Boat insurance is available to help you protect your asset and investment. Boat insurance policies cover them in the same way a vehicle policy covers your car. Likewise, the types of coverage, cost, and payment terms with vary by agent and by state.

It is important to know that boat insurance does not cover normal wear and tear, deterioration, mold, underwater freezing, rotting, or vermin. While the boat as a whole is covered under the insurance policy, there are several parts of the boat that are not covered under the policy. These parts include the floorboards, upholstery, canvas, and foam packing.

Boat insurance coverage is based on one of two methods. The first is the actual cash value. The cash price is determined by taking the actual market price for such a boat ad the time the policy is drawn. The second is the agreed upon value. This is generally a fair dollar amount decided by both the policyholder and the boat owner.

While policies vary greatly in their coverage, most companies include liability, physical damage, theft, and medical bills that result from an incident on the boat. Some policies will also include mechanical costs. To lower your premium you might consider installing burglar alarms, radios, and participate in a boating education class.

While it is tempting to include your boat insurance with your home insurance to get a discount, it is not advised. You want to keep both policies separate. If you have them combined and have to file a boating claim, it will increase your homeowner insurance rate. Another reason is that if you have to file a personal damage claim it can be classified as a health insurance issue in some states. This too will affect your homeowner’s insurance rates.

Boats are a great asset to have. They provide hours of relaxation and enjoyment. It is in your best interest to obtain a boat insurance policy that will cover as much of the vessel as possible under your state guidelines. You want a policy amount that will cover the cost of replacing the boat if that is ever necessary. Keep your boat insurance policy separate from all your other insurance policies so that nothing else will be affected should you ever have to file a claim.

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