The Basics Of Boat Insurance Coverage For New Boat Owners
When it comes to protecting your investment in your new boat, insurance is one of the best additional costs you can invest in. Just like auto insurance, boat insurance protects your boat against collisions in the water, including those with other boats and stationary obstacles. You also get medical cost coverage as well as coverage for uninsured boater accidents. However, there are certain things you should clarify to understand exactly what your policy covers.
Where Are You Protected?
You have to be aware of exactly where your policy extends to before you take your boat out. Your policy will have defined boundaries, such as exclusively domestic waters, both inland and ocean. If you venture out of the coverage area, such as beyond the northern border into Canadian waters or into Mexican waters in the Gulf, you won't be covered for any accidents. Clarify with your agent exactly where your coverage boundaries are.
Are You Covered Out Of The Water?
Some boat insurance policies automatically cover your boat for damage even when it's out of the water. Other companies require you to add a rider that provides out-of-water coverage, such as dry dock protections. Make sure that you are clear on the out-of-water protection your policy offers, and request the rider if it's necessary.
What Is The Replacement Value?
The replacement value of your boat, as defined in the policy, will vary based on how replacement value is defined. Your insurance company will usually have two options for that replacement value. Your insurance company may allow you to insure your boat for an agreed value, which will be determined at the time you buy the policy. If you opt for this, that value is what you will get for the boat if it's ever deemed a total loss, no matter what it is worth at the time. Otherwise, you can choose market value. That is the current value of the boat at the time a loss is suffered. It accounts for depreciation, so it may be less than you'd get out of agreed value.
Are There Any Policy Discounts?
You may be able to reduce your premium by opting for some policy discounts through your insurance company. Ask about multi-line discounts, boater safety discounts, and other options that can help you reduce your total premium costs.
The more you understand about your boat insurance coverage, the easier it will be to protect your boat against all sorts of hazards.
Contact an insurance agency like Veronica's Auto Insurance for more information.