Although not in the generally considered by the general public, boat insurance is more than likely the oldest type of insurance in the world. A boat, just like all vehicles is liable for an insurance policy, under the Marine Insurance Act. With car insurance plans there is usually an excess to deter people from claiming on small dents and scratches but with boat insurance the excess is considerably larger to avoid the same problem. So the major difference between boat insurance and car insurance is the amount of coverage a policy provides.

As soon as you become a boat owner in America, most states will require you to have a boat insurance policy in force. Strangely, in the eyes of the Marine Industry, a houseboat is in the same category as pleasure boats like sailboats, jet boats and cabin cruises for instance. If you are an owner of a speedboat for example, your insurance premium will be higher than for that of a fishing boat owing to the potential for a larger claim.

Almost all boat insurance policies will cover the cost of replacing the vessel, engine and the boat trailer but Actual Cash Value boat insurance plans only pay for replacement less any vessel depreciation from the point of loss. When the craft is a complete insurance right-off then the second hand value of the boat is used to estimate its market value. If you require insurance to cover for additional situations like emergency services to your vessel, repairs, boat trailer and wreck removal for instance then it is possible to take out an Optional Insurance Cover. Partial damage repairs on the other hand are calculated by working out the full charge to restore the boat minus deductibles.

Boat Insurance Agents...

Agreed amount value boat insurance policies mean that the owner of the boat and the insurance company have decided on the cost of the boat, and in the aftermath of a total loss the owner will be compensated with that amount. This type of policy also takes into account that old items have depreciated and have less value but are still replaced with new ones. With most Agreed value policies, the boat insurance company will require replacement value of some items like dinghies, sails, covers, drive units to name a few, before the policy payout value is agreed.

Essentially boat insurance covers two distinct areas; that of legal liability and that of damage or loss of property. Liability insurance is there to cover against claims by another person that the insured vessel caused damage or injury to a third party. Remember to try and find a boat insurance agent with a good reputation of getting the best possible policies for his clients and a good record in claim settlement. Make sure your boat insurance policy also has provisions for lawful protection, in case one is charged for something that is protected under the boat insurance.

Boat Insurance Agents

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