Choosing the Best Insurance For Your Boat

Finding the right insurance policy and agent for yourRecreational marine insurance polices will always
trawler or motor yacht can be complex andinclude steaming limits. It is usually a guarantee of the
confusing. Marine insurance is highly specialized and ispolicy and consequently extremely important that it is
much different that your automobile or homeownerscorrect on your policy. A warranty is strong language
insurance. Incidentally, marine insurance is the oldestin an insurance policy and if you venture outside
form of insurance and governed by its own set ofthose limits noted on the declarations page, you will
Maritime Laws.not have any coverage is you were to sustain a loss
Hull coverage includes the hull and structural itemswhile cruising. Make sure you speak with your agent
aboard on boat and equipment permanently attachedabout this matter and make sure you have the
and used in the regular operation of the yacht.coverage you need; keeping in mind this is a crucial
Often you can purchase hull insurance at Agreedfactor in determining the premium.
Value, meaning that you and your insurance companyLay-up dates are also something you will want to
"agree" on the value of your vessel. if your boat is adiscuss with your agent. If you are in hurricane prone
complete loss you will be covered for that amountareas, a layup will often be covered by the policy to
on the Declaration Page of the Policy. There is also,protect the yacht from harm by an active storm.
Actual Cash Value (ACV). What this means if yourYou may be entitled to some premium reduction if
trawler or motor yacht is a total loss, you will bethe trawler or motor yacht is hauled out of water
offered - the going market value of trawler or motorduring the winter months too. Some other matters
yacht. Boat US is fond of proposing these policies andthat could result in a discount are boating courses,a
many buyers are not fully conscious of what theyCoast Guard Captain License, and equipment on your
are buying. Most losses are partial losses and youtrawler or motor yacht such as anti-theft devices.
could expect a depreciated settlement on that asAdditionally, many boat policies will have Longshore
well. While Actual Cash Value will be less expensive,and Harbor Workers Compensation that would cover
beware, you may also learn that if you have a claimyou should you become legally bound under the
you are getting far less than you bargained for.Longshore and Harbor Workers Compensation Act
Be sure to talk to your agent about how your lossfor any physical injury arising out of the ownership,
would be established for both a complete loss and amaintenance or use of a yacht. Jones Act coverage
partial loss and what would be subject towould also be required if you hire crew or have a
depreciation. Often items like canvas, cushions,full-time paid Captain.
engines etc. are subject to depreciation. Some policiesIn addition, look at the Exclusion segment of the
actually exempt canvas from wind storm damage.policy so you know what is not covered.
It's also important that the policy you buy coverSince marine insurance is a different animal, you will
salvage, fuel spills and wreak removal as these issueswant to work with an Agent that has experience
come with boat ownership. Oftentimes, the salvagewith trawler or motor yachting and knows the marine
of a destroyed boat will exceed the policy limits ifinsurance industry, so they will know how to guide
not for additional coverages included in the policiesyou.
offered by the best companies.