Boat Insurance 101

Boat Insurance 101

Who is ready to go out on the boat and enjoy the great Carolina weather we are having right now?  Before you head out on the lake or coast one thing on your checklist should be to make sure you have the proper coverage for your boat.  Here are a few things to think about:

IS LIABILITY INSURANCE A PART OF BOAT OWNER’S COVERAGE?

Most boat policies provide for Liability Coverage for a stated limit of liability. The policy responds when an insured becomes legally obligated for damages arising out of the ownership, maintenance, or use of a pleasure boat. The coverage provided may have a few listed exclusions or limitations, which will likely vary depending on the insurance carrier.

WHAT PERILS ARE NOT COVERED BY A TYPICAL BOATOWNER’S

ENDORSEMENT OR POLICY?

Pleasure boat policies or endorsements provide coverage for “all causes of loss” that are not specifically excluded. Some of the typical exclusions are:

• Overheating of engines and Corrosion or rust

ON WHAT BASIS ARE PHYSICAL DAMAGE LOSSES ADJUSTED?

Policies differ on the settlement of losses. Some offer:  Replacement cost coverage (cost of replacement or repair), Actual cash value (cost or replacement or repair, minus depreciation) and Agreed value (an amount agreed upon by both parties to pay for total property loss.)

WHAT OTHER COVERAGE RESTRICTIONS MAY APPLY?

Some policies contain restricted navigation territories or time frames. If the boat is operated outside these areas or times, the policy may not provide coverage. Find out if your policy includes any of these restrictions and be familiar with them.

WHAT KINDS OF PREMIUM DISCOUNTS ARE AVAILABLE?

Various kinds of discounts may be offered to help reduce the cost of insuring your boat. Discounts may be given for attending safety courses (such as those sponsored by the Coast Guard or the American Red Cross), having a claim-free record, and having multiple insurance policies with the same carrier. Ask your  Insurance agent about any available discounts that you may be eligible for.

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