Sailing in the water is a thrilling experience, especially if you own a boat. While owning a boat is a long-term investment and comes with many benefits, it also comes with a share of risks. Having boat insurance is an excellent way to protect your investment from potential risks. Boat insurance are different since each caters to specific needs and circumstances. In this article, we look at some of the most common boat insurance types to help you figure out which is best for your boat. You can also click here to learn more about insurance.
Hull Insurance
If you only want to cover your boat, hull insurance is your choice. This cover protects your boat against collision, theft, loss, fire, or other physical damage. It’s important to note that this cover does not compensate the owner for any loss caused by wear and tear. Hull insurance can be extended to cover your belongings inside the boat.
Liability Insurance
Liability insurance covers other boaters in case of any damage or injury caused by your boat. This means if your boat causes damage to another boat or structure, the insurer will pay for the cost of repairs. The provider will also pay for medical expenses if other boaters sustain injuries.
Comprehensive Insurance
Comprehensive insurance will cover for damage or loss to your boat that is not caused by a collision. It includes coverage for events such as theft, vandalism, fire, storms, falling objects, or accidents during transportation.
Collision Insurance
Collision insurance covers damage to your boat from a collision, regardless of who is at fault. This insurance covers damages caused by collision with another boat or a submerged object like a rock or debris. It helps cover your boat’s repair or replacement costs, depending on its value.
Uninsured/Underinsured Boater Insurance
This boat insurance protects you and your passengers in the event of an accident caused by another uninsured or underinsured boater. Imagine what could happen if you don’t have insurance or the other party has no coverage to pay your medical expenses. It can be challenging, especially if you’re in financial difficulties. With this cover, you will be sorted for medical expenses, saving you financial stress.
Agreed Value Insurance
With agreed value insurance, you and your insurer set a predetermined value you will receive in the event of a total loss. This value is mainly based on the cost of the boat. While agreed value insurance offers more certainty, it may be more expensive than actual cash value insurance.
Actual Cash Value Insurance
Unlike agreed value insurance, where you set the boat’s value upfront, actual cash value insurance uses the market value to determine the reimbursement amount.It means the policy factors in the boat’s depreciation and wear and tear to reach its market value at the time of loss. While actual cash value insurance has a lower premium, making it inexpensive, it may result in a lower payout.
Take Away
Boat insurance is an excellent way to protect yourself and your investment, ensuring peace of mind. While there’s no a one-size-fits-all option when it comes to boat insurance, having the right combination can save you money and time. The most common boat insurance types are comprehensive, liability, hull, collision, Uninsured/Underinsured, agreed value insurance, and actual cash value insurance. Click here to learn more about insurance.
