Archive for October, 2008
The Importance of Boat Insurance
Wednesday, October 15th, 2008 | Shopping | No Comments
Probably one of the oldest types of insurance cover in the world is boat insurance. All aquatic vessels are obliged to be insured against a number of events and it is against The Marine Insurance Act if they are not. Boat insurance policies, just like vehicle insurance come with an excess except the excess for a boat is usually quite a substantial sum which is done in order to discourage small claims which is often the case with cars. So the major difference between boat and car cover is the amount of coverage a policy provides.
Standard boat insurance is a legal requirement in most American States and should be something that is done as soon as a person acquires the vessel. Strangely, in the eyes of the Marine Industry, a houseboat is in the same category as pleasure boats like sailboats, jet boats and cabin cruises for instance. However, a speedboat is in a completely different category to say a fishing vessel owing to the nature of its activities and a higher insurance premium is likely.
Actual Cash Value boat insurance policies cover the cost of the vessel replacement les any depreciation form the time of the boats loss whereas most boat insurance plans will pay for the replacement of the craft, the engine as well as the trailer. Usually when a boat has been damaged beyond repair, its current market rate is calculated using second hand values as a guide. If you require insurance to cover for additional situations like emergency services to your vessel, repairs, boat trailer and wreck removal for instance then it is possible to take out an Optional Insurance Cover. Whereas partial damage costs are worked out by calculating the entire charge of the restoration less any deductible items.
To guarantee the value of the boat should it happen to be an insurance write off then an Agreed Value boat insurance policy can be taken out where the boat owner and insurance company come to an agreement about how much the vessel is worth and compensate to this value. Agreed amount value policies also replace old objects with new ones, exclusive of any assumption for depreciation. With most Agreed value policies, the boat insurance company will require replacement value of some items like dinghies, sails, covers, drive units to name a few, before the policy payout value is agreed.
The two chief aspects of boat insurance are legal responsibility, or security and insurance or property loss. The liability section covers the owner against claims by a third party if any damage is caused to that person or his property by the insured vessel. At an early stage it is worth trying to employ the services of an insurance agent who has experience and a reputation for locating the best boat insurance and settlements for his clients. Equally important when searching for a policy is to have one with good legal backup should it be necessary as a liability claim that is covered under the boat insurance policy be brought against you.
