Things to Consider when Purchasing Boat Insurance

Nearly half of all boating accidents result in injuries. And even if you have a long history of captaining a boat, something that you’ve been doing for decades, an accident can result  by someone who is recklessly piloting another boat that collides with your vessel. Oftentimes, people who don’t have the essential skills to drive a boat take it upon themselves to do so without considering the inherent risks. He or she might be a little unsteady on the water, or don’t know what they need to do when another vessel gets too close.

Furthermore, many may not even have any boat insurance coverage. Statistics show that forty percent of boaters are uninsured. That’s why, as the owner of a boat you need to ensure that you have the necessary coverage in place to protect your craft from bow to stern. There are policies available that will also cover your gear and accessories, as well, including everything from anchors, skis, fishing gear, and more.

Boat insurance can be added to a homeowner’s policy, or purchased separately from an independent insurance agent or directly from a marine insurance specialist. Buying a policy through a reputable agent or directly from a marine insurer specialist is likely the best option, since many homeowner’s policies often limit what is covered or may not provide some of the marine related coverages (like salvage recovery).

Agreed Value vs. Actual Cash Value  

These are the two main choices for boat insurance agency Orlando and depreciation is what sets them apart. An “Agreed Value” policy costs more but it also pays more (it will cover the stated value of the policy in the event of a total loss). For example, a total loss on a $50,000 agreed value policy would pay you $50,000.

More importantly, in the event of a partial loss an Agreed Value policy replaces most items on a “new for old” basis. Depending on the carrier, this means with little or no depreciation. Therefore, a claim for a stolen GPS device would replace it with a new, comparably priced GPS.

“Actual Cash Value” policies cost less, but only pay up to the actual cash value at the time the boat or property was lost. In this case depreciation is factored in on all losses. For less expensive boats or when there isn’t a concern about a total loss, Actual Cash Value policies will probably be sufficient. Consider what the value of the boat is, and all of the items contained therein, when making a decision about what type, and how much boat insurance will be required.

Frank

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