Adding Boat Insurance to an Existing Policy
June 24, 2010 by · Leave a Comment
Boat insurance is as big of an investment as getting home insurance and so there is definitely a good reason to add your boat insurance to an existing insurance policy. There are benefits and disadvantages of buying a different policy or adding to the home insurance policy. And while is may seem most cost effective to protect your property and consolidate it you should always investigate both options before reaching a decision.
If you have a home insurance policy then you already know that it allows you to add additional property to the policy at a lower rate, which is very cost effective for you to insure a high value item like a boat. However, adding boat insurance to an existing policy probably does not allow for some of the more important parts of boat coverage. Yes it will over the cost of the boat but it will likely not include wreck removal, loss of use, or insuring against environmental damage for oil or gas leaks. If something like that should happen and you don’t have the coverage for it, then you have to pay for it.
Another big problem for boat owners if that if you insure your boat with a home insurance policy then the insurer may not be a specialist in boat insurance claims. If they have little to no experience with this then that could mean disaster for you if a claim needed to be filed later.
Boat insurance is very unique and specialized kind of insurance and so your coverage needs to be tailored to the needs and potential risk of that vessel. Getting an insurance carrier that has specialized in boats and water vessels will help you make sure that all your needs are covered and that they are capable of handling any future problems. Sometimes that peace of mind is much more valuable than having a lower rate by adding a boat to your home insurance policy.
It is not uncommon for boat owners to leave their boat uninsured during the winter months that they are not using it. While this is very common it can turn out to be a major mistake for the boat owner.
In a lot of areas of the country it is simply impossible for any kind of watercraft to be used in winter because of the poor weather conditions. A lot of boat owners have the misconception that if the boat is in storage for the winter then no insurance coverage is needed, this is a mistaken belief.
If you just go with statistics alone there are more boats damaged in storage every year than boats that are actually being used. These unforeseeable circumstances can cause the complete loss of your boat. These kinds of damages can run from something as minor as a nesting animal or slight weather damage all the way to a fire or natural disaster that completely destroys the vessel. An unused boat still needs just as much protection as one that is in use.
If you plan to place your boat in storage for any amount of time you should discuss winter storage protection with your insurance agent. Most insurance policies have a greatly reduced rate for winter storage since the risk of damage is still lower than when it’s in use. Using this coverage will give you the peace of knowing that even when you aren’t using your boat it will be safe and protected if a disaster should occur.
Boat Insurance Rates And Choosing a Plan
April 9, 2010 by · Leave a Comment
If you own a boat, chances are you and your family, enjoy time on the weekends skiing, fishing, and just enjoying time outdoors on the water. In recent years, however, the number of boats in the United States has increased substantially. While people enjoyed the more traditional type of boat such as the sail boat or power boat, we now see people using a personal watercraft, hovercrafts, and even houseboats. Just as with a car, it is important for boat owners to purchase an insurance plan for protection.
In addition to the number of boats now on the water, one of the biggest changes has been the size of the motors being used in newer boats. For instance, seeing boats that can glide along the water at 50 miles an hour or more is actually common. In fact, for people that own jet boats, speeds can reach 70 or 80 miles per hour. With the greater power comes an increase in law suits specific to personal injury occurring on the water.
For many years, the number one goal of an insurance plan for boaters was to protect the boat itself. The coverage would ensure the owner would have a way to recoup cost if the boat were to be stolen or damaged. However, now with the number of people experiencing injury specific to boats, you will also find companies that sell an insurance plan for personal liability.
Although no boater wants to worry about an insurance plan that would protect them from a lawsuit in the case of someone being injured but the positive side of this is that with an increase in number of incidences, insurance companies that sell boat insurance are now offering more competitive policies and prices. Because of this, you would have the chance to look at coverage options from a variety of insurance companies.
Just as you would do for car insurance, homeowner’s insurance, or health care insurance, you want to look at several companies that sell an insurance plan for boats. That way, you would have the chance to find the policy that best serves your needs but also a plan that fits in your budget. Now, when you get ready to get quotes on a boat insurance plan, you need to consider a number of things before making your final choice.
For instance, you want to know the way in which the premium has been calculated for the policy. The reason is that different insurance companies use different criteria in setting boat insurance rates . Some will look at the overall cost of the boat while others look solely at horsepower. If you own a boat with a powerful engine, understanding the calculation used would be essential.
Another consideration for an insurance plan for your boat is the amount of liability. Most insurance companies offer coverage as high as one million dollars but there are some companies that go even higher. Obviously, the more coverage the higher the premium but again, if you have a boat with a powerful engine, you often carry numerous passengers, or you often use the boat for skiing and other physical activities, then it would be important to choose a high amount of liability.
Even the type of liability would be a part of the decision for an insurance plan specific to boats. As an example, you would need to determine if you want medical coverage included, if you want uninsured boater insurance, which means if you were in an accident and the other party did not have insurance, your policy would kick in, and more. Finally, you might consider an insurance plan that includes towing. In this case, if your boat were to become stranded, the policy would cover the boat being pulled out of the water and towed. Using these tips will help you in finding the best boat insurance rates.
