While buying boat insurance can be confusing, it really is necessary for anyone wishing to own his or her own boat. There are many specific risks that boat or yacht insurance will protect an owner from, like environmental damage, wreck removal, pollution, or salvage work. Deciding on the type of policy needed can be very complicated, as there are a variety of factors to weigh and consider. High Net Worth insurance is specifically geared towards property of high value and is recommended for owners of more expensive boats.
There are two basic types of boat insurance
The two available types of insurance are "agreed value" and "actual cash value". The simplest way to understand the difference is to say that "agreed value" doesn't include depreciation, and "actual cash value" does.
"Agreed value" is undoubtedly more costly upfront, but it covers the cost of the boat on the day the policy is issued, rather than the boat's depreciated value over time. "Actual cash value" is more inexpensive, but only covers the amount of the boat on the day that a claim filed, and therefore the boat is classified as either a total or partial loss.
When going through the process of selecting a policy there are several different considerations that ought to be made. The following are important questions to ask when determining which policy is going to be best for any given situation:
Depending on the answers to these questions, the policy may increase in price. Some additional factors that can influence the cost of the policy are cruising area, level of training in boat safety, any type of boat certification, driving record for the boat (and also car), the liability limit, and any deductible. It makes sense for anyone owning a luxury yacht or expensive cruising vessel to opt for an agreed value policy.
Boating insurance can be confusing and a hassle, there are a number of top insurance companies available to help anyone owning, or considering purchasing a boat, get the policy that they need for the best price possible. Call and ask a credible agent experienced in boat insurance for any types of questions or concerns.
There are two basic types of boat insurance
The two available types of insurance are "agreed value" and "actual cash value". The simplest way to understand the difference is to say that "agreed value" doesn't include depreciation, and "actual cash value" does.
"Agreed value" is undoubtedly more costly upfront, but it covers the cost of the boat on the day the policy is issued, rather than the boat's depreciated value over time. "Actual cash value" is more inexpensive, but only covers the amount of the boat on the day that a claim filed, and therefore the boat is classified as either a total or partial loss.
When going through the process of selecting a policy there are several different considerations that ought to be made. The following are important questions to ask when determining which policy is going to be best for any given situation:
- What is the age of the boat?
- What type of boat is it?
- What is the boat's length and current value?
- How fast does the boat travel?
- What condition is the boat in?
- Is the boat used as a primary residence?
- Is the boat homemade?
- Does it have a motor?
- Is there more than one owner?
Depending on the answers to these questions, the policy may increase in price. Some additional factors that can influence the cost of the policy are cruising area, level of training in boat safety, any type of boat certification, driving record for the boat (and also car), the liability limit, and any deductible. It makes sense for anyone owning a luxury yacht or expensive cruising vessel to opt for an agreed value policy.
Boating insurance can be confusing and a hassle, there are a number of top insurance companies available to help anyone owning, or considering purchasing a boat, get the policy that they need for the best price possible. Call and ask a credible agent experienced in boat insurance for any types of questions or concerns.
