Being a boat owner can be a lot of fun. But before getting on the water, it’s important to consider boat insurance. A home insurance policy may offer boat coverage, but the coverage is not extensive.
Liability coverage for a boat or other water vehicle helps guard against damages and injuries that happen on or around the water vehicle. In spite of taking precautions, accidents still happen, and this coverage helps cover medical expenses or repair costs. Accidents on the water vary, and can involve other boaters, swimmers or water skiers. As for property damage, that may include other boats, a dock or the environment. A no-fault clause might even provide payment for injured passengers onboard.
Different policies work in different ways.
An agreed value policy defines the value of the boat when the policy is written. If an accident destroys the boat, then depreciation will not affect the settlement. On the other hand, an actual cash value policy pays out the depreciated value of the boat at the time of the accident.
An all risk policy provides extensive coverage, but is limited to types of loss detailed in the policy. This policy excludes wear and tear, manufacturer and design defects or animal damage. Coverage can also include:
• Specialty equipment
• Consequential damage
• Salvage coverage
Anyone who owns a boat and uses it on the water or parks it outdoors should consider boat insurance. Two important factors revolve around how and where the boating takes place. This is why it is important to know what the plan covers. If an accident occurs, then you need to know if towing is covered, among other details. Pictures of damage can help with the claim.
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