Good Boat Insurance Coverage
What is Boat Insurance?
Enjoying the open water on motorized boats and personal watercraft can be great fun and recreation for the whole family, but it all comes with various levels of risk. Boat insurance is a special variety of insurance that is engineered to specifically protect boat owners from the financial consequences of damage and/or injury that can occur anytime while boating. In some cases, like car insurance, boating insurance is a legal mandate.
Those with bigger vessels, like yachts, will benefit most from a policy that closely mimics the formula of a homeowner’s insurance policy, while those with smaller craft will be better helped by coverage that is more like an auto insurance policy. Examples of covered craft include sailboats, pontoon boats, cabin cruisers, bow-riders, various fishing boats and other kinds of marine vessels that are motor-powered. In some instances, insurance providers may not provide coverage for more costly luxury yachts, houseboats and other premium vessel.
How it functions
At the very least, boat owners will likely be best served in purchasing coverage that is for bodily injuries and property damage. This includes injuries that happen on the boat and injuries or deaths that might occur to other parties who are somehow related to the policyholder and his or her boat. An insurance provider will often undertake a comprehensive appraisal on a boat or watercraft that is under consideration for coverage. Risk levels are evaluated for the particular craft in question in order to determine a fair rate for premiums. For instance, a power boat that can often reach speeds in excess of 70 miles per hour and, therefore, would not likely qualify for the usual insurance coverage due to the elevated risk in operating such a craft. Large house boats that are docked all year long also have higher risks and exposure to damage and therefore can require special coverage.
Different Kinds of Coverage
Good boat insurance comes with liability protection that is there to help compensate for medical expenses of those involved in an accident. Liability coverage also often pays out for property damage that results from mishaps with docks, marinas, piers and other obstructions in the water. Uninsured watercraft coverage is what gives payment for insured individuals who suffer the consequences of the actions of boat operators who are under insured or who have no coverage at all. This kind of insurance can also result in the provision of funds for repairs for damage done by severe weather events.
Boat owners need to decide where, when and how often they will be using their boat when looking for the proper policy coverage. Perhaps the biggest benefit of all is the peace of mind in knowing that, as a boat owner, you are fully protected from any number of perils and risks. Speak with an insurance professional for more information in obtaining the best boat insurance policy that will fit your needs.