Boat Insurance Basics

The physical damage part of a boat insurance policy is exactly as the name describes with an ‘all risk’ policy generally covering you for almost every eventuality (that has not arisen due to lack of maintenance) including fire, theft, collisions and damage caused due to extreme weather conditions. What you need to make sure is that your boat is covered while on and off the water.

When comparing prices between boat insurance polices make sure that the coverage is similar. One of the biggest differences in boat insurance is the level of cover with some insurance policies covering you for an agreed value (agreed at the time the policy is taken out) with partial damage generally being covered on a new for old basis and others basing their boat insurance quote on actual cash value which will take into account market value less and element of depreciation. Cash value boat insurance is a cheaper option.

The most important element of all insurance policies with boat insurance being no exception is the liability coverage. You need to ensure that you have insurance to cover paid and unpaid crew and removal and disposal of your boat if it wrecked as well as third liability cover for any damage you might cause to other boats, dockside workers or anything / anyone else who may come in contact with your boat.

If you use your boat for any kind of commercial purpose it is advisable to seek professional advice regarding the additional elements of boat insurance you will require (over and above the insurance required for a boat used for personal pleasure) before taking out boat insurance. There are many added complications to boat insurance so you need to make sure all your legal and potentially costly liabilities covered.

As with car insurance and motorcycle insurance, boat owners can take out uninsured boat insurance to cover the cost of injuries incurred on your boat as a result of an uninsured boat owner.

You might want to consider medical payment coverage as part of your boat insurance policy which will cover you and anyone aboard your boat for legal costs even if you are not legally responsible for the injuries incurred.

The cost of boat insurance can vary quite considerably depending on such factors as deductibles, age and value of boat, type of boat and experience. A couple of easy ways for influencing the cost of your boat insurance is to go for the highest percentage of deductibles available (providing you could afford to pay the cost if required), ensuring your boat and safety equipment is maintained to a high standard and making good use of discounts offered for when your boat is out of the water (the greater the time the higher the discounts).