Common Insurance Questions From Boat Owners
Do I have to insure my boat?
Can I insure my boat under my home insurance policy?
Most home insurance policies will allow you to insure boats up to a certain length or horse power. This is generally limited to small aluminium boats with outboard motors. You may have no choice but to insure your boat under a stand-alone boat insurance policy.
Home insurance policies are not intended to cover marine risks and have limited coverage for boats where as a stand-alone boat insurance policy will offer all-risk coverage. The basis of loss settlement on a stand-alone boat insurance policy is Agreed Value which is the amount shown on the policy declaration page. On a home insurance policy, the basis of loss settlement is Actual Cash Value which is replacement cost less depreciation. You may save some money by adding your small boat to your home insurance policy but it could cost you thousands of dollars when a loss occurs, assuming you have coverage in the first place.
Lastly, if you insure your boat under your home insurance policy, a claim on your boat counts as a claim against your home insurance policy. Once you have a couple of claims, your insurance company may cancel your home insurance policy. If that happens, you will have to purchase a high risk policy at triple the premium you were paying before.
What is the difference between Agreed Value and Actual Cash Value?
Do I have coverage when towing my boat?
What is a survey and do I need one?
What discounts are available?
Boat Insurance Is A Necessity
Boat insurance is a necessity that cannot be ignored, and you need to ensure that you go beyond just the basic options. The basic options cover just that. There is no help if your boat crashes or spills, and you could be liable for thousands of dollars. Instead, use the helpful tips we have given you above and find the best insurance for your vessel so that you and your passengers can be safe and secure in the knowledge that you have nothing to worry about.
What Factors Affect Boat Insurance Cost
Racing Make sure you dont pay over the odds for localised sailboat racing. Some boat insurance policies provide cover automatically at no extra cost for localised sailboat racing such as the Round the Isle of Wight Race . However, others may charge an additional premium, based upon the estimated cost of replacing the damaged parts. Make sure you ask before you buy otherwise you could end up paying extra for something thats automatically included elsewhere.
Mooring in marinas Similarly, ask if there are any discounts for boats moored in marinas. Most insurance providers have agreements with specific marinas which could reduce your premiums by up to 20%. You can also save costs if your boat is kept ashore.
Changing mooring locations If, after youve bought your policy, you change the mooring location or buy more gear/equipment, it is important to let your boat insurer know. If you dont, it could affect any subsequent claim you make.
Boat insurance excess Excesses will vary depending on your provider, but invariably the higher the excess, the cheaper the quote. Make sure know what youre expected to pay out upfront if you make a claim you may want to increase or decrease it.
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What Is The Best Type Of Boat Insurance
The best type of boat insurance is insurance coverage that adequately meets your legal and contractual obligations and allows you to feel comfortable about your exposure to risk. Because each individual situation is different, it is important that you determine what coverage factors matter most to you and your family. Spend time researching your options and speak with multiple insurance brokers or agencies. Allthingsboat.com has an excellent review of boat insurance providers.
What Does Boat Insurance Include
When you purchase boat insurance, standard insurance will typically cover the following:
- Bodily injury: If someone gets injured while on your boat, this will help cover legal and medical bills associated with the accident.
- Property damage: This coverage will protect you if you are at fault in an accident that caused damage to another boat or property.
- Collision: If youre in an accident, this will pay for the cost of repairing or replacing your boat. This coverage is usually optional however, a lender may require you to purchase it if youre leasing.
- Comprehensive: This coverage will pay for repair costs if your boat gets damaged from something other than a collision this includes floods, storms, fire, theft, and vandalism.
- Uninsured/underinsured motorists: If an uninsured or underinsured motorist causes damage to you or your boat, this coverage will help protect you.
- Medical payment coverage: If youre involved in an accident, this coverage will pay for the medical costs regardless of who is at fault. Some policies will even cover funeral expenses.
There are also additional options you can add to your coverage, such as:
Keep in mind your insurance should cover all operators.
Talk to your insurance provider and make sure you have all the appropriate options added to your plan for your specific situation and climate.
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Does My Home Insurance Cover My Boat
Although quite rare, some home insurance policies may offer a minimal amount of coverage for small boats . You should check your PDS or call your insurer to find out whether or not you have any boat coverage under your existing home insurance policy. Once again, this situation is unusual and even if you do have some coverage, it’s likely only for damage that occurs while the boat is on your property. The type of damage will be limited, and you will not be insured on the water. Your safest bet will always be to take out a separate policy for your boat.
How Much Should I Insure My Boat For
Most insurers will allow you to nominate an insured value for your hull and tender, and depending on the watercraft type, there may be additional sums insured for your outboard motor, sails, masts, booms & rigging and trailer. Remember, your boat is a lot like a car in that it starts depreciating over time, so you don’t want to insure it for more than what it’s really worth.
If it’s time for you to take out boat insurance, start a quote with us today to see how we make the process smooth sailing.
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Boat Insurance: Whats Required
While Alabama is one of the many states that doesnt require boat owners to have insurance, you may still be required to have it by the marina where you dock your boat, or even by the lender if took out a loan to purchase it.
Still, even if no one is requiring you to have insurance, youll want to have insurance in place.
Dont believe me? According to the latest Executive Summary, in 2017, the Coast Guard counted 4,291 accidents that involved 658 deaths, 2,629 injuries and approximately $46 million dollars of damage to property as a result of recreational boating accidents.
These numbers are pretty startling and should prove just how critical it is to cover your bases when it comes to being out on the water.
What Is Boat Insurance
Boat insurance protects you if there is damage to your boat, motor, trailer or personal items in the boat. Its also there to help you in the event of any lawsuits or medical bills.
Typically, only small, non motorized boats can be insured under your homeowners insurance policy. Boat insurance protects almost all watercrafts with engines. Accidents can happen, but with boat insurance, you can get a peace of mind knowing youre covered.
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What Kind Of Boat Insurance Do I Need
Like many other insurance policies, boat insurance can typically be separated into a few types: liability, uninsured motorist, and collision/comprehensive coverages.
Liability insurance is the minimum standard required by most states, banks, and marinas. The boat insurance professionals at trustedchoice.com recommend buying at least $1,000,000 in liability insurance. The recommended amount of liability coverage can be even higher if you have a fast, powerful boat that is both riskier and can cause more damage.
With uninsured/underinsured motorist coverage, the standard minimum is $10,000. Ensure that you take into account any potential injuries and damages you may need to cover if you or one of your passengers is injured or your vessel is badly damaged.
The last type of boat insurance we will cover is collision coverage and comprehensive coverage. These types of coverages should be based specifically on the value of your boat. Check with your lender or your marina to see if there are insurance policies in place.
Does Boat Insurance Cover Engine Damage
Boat insurance sometimes covers engine damage. This varies from company to company, as well as by policy. Some insurance companies have machinery damage exclusions while others do not it often depends on the age of the motor. Reimbursement may include replacement cost or be subject to depreciation.
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Foremost: Best Variety Of Coverage
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Variety of packages and coverage options
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Several great discounts
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Limitations on who can receive coverage
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No mobile app
When it comes to coverage, Foremost offers many standard coverage options, including:
- Watercraft physical damage
- Personal property
Additionally, Foremost offers numerous packages that let boaters customize the coverage they receive. These include:
- Saver Package The most affordable package includes cash value settlements in case of a total loss
- Plus Package Includes all of the basic coverage plus agreed value/total loss replacement cost settlement, watersports liability, diminishing deductible, depreciation deferral, and hurricane haul-out
- Elite Package Offers the most coverage possible, with perks such as boat lift/hoist/cradle coverage, fishing tournament fee reimbursement, pet insurance, trip interruption coverage, enhanced towing services, Bahamas and Mexico navigation coverage, extended total loss replacement, and depreciation deferral
- Pontoon and Pontoon Elite Packages For the specific needs of pontoon boats
- Classic and Classic Elite Packages For boats more than 25 years old
- Performance and Performance Elite Packages For speedboats that reach speeds of 77 mph or greater
- Personal Watercraft Insurance With features specifically tailored for personal watercraft
Discounts
Limitations
Additional Perks
Age And Operator Restrictions
If you are under 12 years of age: You may not obtain your Alabama boater safety certification, and you may not operate a vessel under any circumstances.
If you are 12 or 13 years of age: You may obtain your Alabama boater safety certification. After obtaining the certification, you may operate a vessel legally only if supervised on board by a person who:
- Is at least 21 years of age and
- Carries a valid proof of his or her Alabama boater safety certification and
- Is in position to take immediate physical control of the vessel.
If you are 14 years of age or older: You may operate a motorized vessel legally on Alabama waters for up to 45 days per calendar year without supervision. After 45 days, you must have a valid proof of boater safety certification.
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Own A Boat 4 Reasons Why You Need Boat Insurance
A boat is an enormous responsibility, and in todays times, you can never be too careful with something so precious. That is where boating insurance comes in. You should know that while not every state requires insurance, you should still get it because it protects your boat, and it is highly unlikely that the bank will give you a loan if you dont have it. That means that you may not get the boat you want if you havent prepared first. Another reason that you will need the benefit of boat insurance is that it protects you and others from legal issues that you dont want to deal with.
Home Insurance In Alabama And Florida
Home insurance is a vital part of owning your own home. After all, if things go wrong and you are the only one responsible for the repairs. One wrong turn can change your life if you are not adequately protected. Align Insurance Group offers home insurance to clients along the Alabama and Florida Gulf Coast. So, if you do not yet have a policy, or if you are unhappy with your current one, call us today.
If you have a mortgage on your home, you likely have a requirement to keep home insurance. If you do not have a mortgage, you may not legally need it but not having it puts you at considerable personal risk. Your policy may cover a range of situations depending on the type. If you live in a high foot traffic area, you may want to increase your protection from lawsuits. If you have a lot of family or guests in and out of your residence, you can purchase coverage to balance that risk as well. Have a pool, a specific breed of dog, or other unique situations? We can help with those too. Homeownerâs insurance is designed to protect you and your assets, so be sure to get the coverage your lifestyle needs.
Remember that homeownerâs insurance does not cover flooding, so if you live in a risk zone or you just simply want the peace of mind, ask about additional flood coverage for your area.
Contact Align Insurance Group today for your Alabama or Florida Gulf Coast home insurance.
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Types Of Boat Insurance
There are two basic types of boat insuranceagreed value and actual cash value. How depreciation is handled is what sets them apart.
An “agreed value” policy covers the boat based on its value when the policy was written. While it can cost more up front, there is no depreciation for a total loss of the boat .
“Actual cash value” policies cost less up front, but factor in depreciation. In other word, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss. Eventually, as your boat ages, your insurer will likely insist on an actual cash value policyand if often gives a substantial savings.
Shopping For Boat Insurance
Start with a little fact-finding. Ask your boating friends which company they use and how their claims have been handled. The way an insurer has handled claims in the past is a good indicator of the quality of service you can expect in the future.
State insurance regulatory agencies are also a good reference and can be found online.
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Do I Need Boat Insurance
Even though all but a few states require boaters to pass a boating safety course, most states dont require boat insurance. However, even if your state doesnt require boat insurance, that doesnt mean you should go without it.
Even if you arent concerned about theft or damage to your boat or its contents, you are still exposed to liability risks. Without enough liability coverage, you put your passengers and your own life savings at risk.
Although forgoing boat insurance may not be illegal in your state, it may be required by your bank or lending institution or your marina .
Does Boat Insurance Cover A Blown Engine
Boat insurance covers a blown engine under some circumstances. Check that with the insurance company issuing the policy. Many policies will cover a blown engine when the cause is a manufacturers defect, but not if is due to normal wear and tear.
Contact an independent agent for assistance with all of your boat coverage.
TrustedChoice.com Article | Reviewed byJeffrey Green
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What Optional Boat Insurance Coverage Is Available
Besides a standard policy, you can choose several other options:
- Increased liability limits this will give you more protection than standard liability.
- Comprehensive this can cover fire, theft, and acts of nature. With some policies, comprehensive may be standard but not with all. Many people think that homeowners policies will pay for these things, but they usually have low limits on claims like theft, and what would you do if someone stole all of your boating equipment or the motor?
- Uninsured boater coverage pays for damages in case the other boater has no insurance or the insurance is insufficient to pay for damages. If you have this coverage, your insurance company will take care of the damages and losses.
- Replacement cost coverage this will pay for the actual cost instead of the current market value . This can be very valuable if you buy a new boat and it is seriously damaged within the first few years. It is similar to gap insurance on a car loan.
- Trailer coverage If you have an expensive boat trailer, you may wish to insure it also.
We are a Five Star Agency and the Massachusetts Association of Insurance Agents does not readily hand out this designation. They have extremely rigorous standards in which agency employees are personally interviewed and an entire fitness review is done on the company. You can trust an insurance agency that has achieved this rating.
Does Boat Insurance Cover Hurricane Damages
This can vary, depending on the specifics of your policy and what insurance company youre working with.
Generally speaking, wind damage is covered under standard homeowners and boat policies. Water-related damage, like flooding or storm surges, is calculated and insured differently. Ask your insurance agent to explain what your policy generally covers from hurricanes.
No matter what insurance company youre working with, youll generally have to purchase boat insurance in advance to be covered during a hurricane. It varies by state, but in most places, state regulations prohibit anyone from purchasing insurance coverage at the last minute once a hurricane watch or warning is in effect.
If a hurricane or other severe conditions are in the forecast, stay out of the water and get your boat to a safe spot to weather the storm.
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