When you are insuring your car, your truck and your house, do not forget your boat. Add this to your list of things to insure because boats are not cheap to repair or replace. Perhaps when the bills start rolling in, you think this is something you can let go of since you do not need to live in your boat if worst comes to worst. Still, losing your yacht or motor cruiser is not the worse that can happen.
The most horrible thing would be causing an accident and hurting someone else or destroying their property. In this case, if you failed to insure yourself, you could be hit with massive fees for medical costs, damages to a vessel, and more. While it would feel terrible to harm another person, you do not need to add bankruptcy to your hardship.
Finding cheap boat insurance is not always your priority. Sometimes, it is worth paying more to get all of the coverage you can. This depends on what you do with your vessel. If your boat is your livelihood, you cannot fail to protect yourself against losing that in the event of an accident or theft.
One thing to consider is insuring your self against the possibility that the other party who caused an accident is not insured. If you are a charter tour captain and someone runs into you, killing some of your passengers, it could be devastating to everyone if there is no means of getting financial compensation for the inevitable costs which accompany loss of life.
Even if no one is injured, the boat itself will need to be repaired so you can get back on the water quickly to make ends meet. The same goes for fishermen and people using their boats as taxis.
There are several parts to a boat which should be insured. The structure is routinely covered, so that if the hull or some other fundamental portion is ripped off, this can be replaced or repaired. Technological equipment such as fish finders, GPS and a radio are important and expensive. Have these fixed or get new ones if they are stolen or damaged in an accident or owing to vandalism.
Certain other equipment on board could be damaged, such as pumps and motors. The costs mount up if you do not have an extensive policy to fall back on, especially with a high end model.
It is also important to insure your trailer. Without it, you cannot get a home-bound cruiser to and from the harbor. Take care that personal property is covered too. Every day, someone loses a pair of glasses in the sea while hauling in a big fish.
Fire, theft and storms happen. Policies typically protect against the cost of fixing the damage or buying a new vessel in one of these situations. Check, however, whether you will receive the depreciated value, or if you can replace old with new.
The size of your boat, how you use it, how and where it is stored and protected, and certain other factors will influence the price of your policy. As with a speedy car, a speed boat driver tends to put its occupants and other water users at greater risk by pushing the throttle and skimming the water.
The more powerful your engine is, the more you can expect to pay for insurance. If your engine is less powerful and you cruise at low speeds, this could work to your advantage.
Coverage does not apply to certain risks. For instance, if insects damage your property you cannot make a claim. Wear and tear is generally expected and not something you can claim against regardless of what you own, whether it is a car, a house, or a yacht. Animals, whether aquatic or land-based, are not the insurer’s problem.
Since you are in a body of water, you can expect to encounter some marine life. Although a storm could cause damage for which you can make a claim, mold is the result of damp over time and should be protected against. It will not be covered. Check all of your parts and equipment before buying your boat because defects in machines and any problems they cause will not be paid for by your insurance company.
There are ways to reduce the cost of a decent policy. One of them is to increase your deductible amount. This will hurt, especially if something minor happens, but there are two advantages.
One is that you will pay less for your policy each month. The other is that you will not be tempted to make a claim for something small. As soon as you do, you lose the chance to gain discounts for not having made a claim after so many years.
Another way to decrease regular payments is to pull all of your insurance policies under one umbrella. This takes some careful research. Ensure that all items, such as life, house and car coverage, will still be as inclusive as you need them to be. It is no good saving money only to find that you lost something by making the switch.
Still, any no-claims bonuses you have earned could be advantageous to you as a boat owner in the event that you have successfully avoided disaster at home and in your vehicle. Not only does it pay to group your coverage, but there is a lot less hassle. Sign a cheque once every year. Send it to a single policy provider and deal with just that one company every twelve months.
Just remember that negligent behavior will nullify your policy. If you give the wheel to an inexperienced, unlicensed driver who causes an accident, you get nothing. If you drive while intoxicated and cause damage to your vessel or someone else’s vessel, you get no money but will probably pay a fine or do some time in jail.
Evaluators want to know if you carry requisite safety gear, have a working radio, and behave responsibly as the captain of your boat.
