With boats being about the oldest form of transport still being used, it is not surprising when you realise that boat insurance has been available in varying forms for thousands of years. Under the Marine Insurance Act, a boat is just as liable for insurance as any other type of vehicle. 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. There is little difference between the two types of policy except the amount of cover provided with boat insurance is considerably larger.

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.

Actual Cash Value boat insurance policies cover the cost of the vessel replacement les any depreciation form the time of the boats loss whereas most boat insurance plans will pay for the replacement of the craft, the engine as well as the trailer. When the craft is a complete insurance right-off then the second hand value of the boat is used to estimate its market value. Optional insurance usually includes coverage for reasonable repairs, emergency services to your boat, motor, or boat trailer, and wreck removal. Whereas partial damage costs are worked out by calculating the entire charge of the restoration less any deductible items.

Boat Insurance Policy...

A better boat insurance plan is the Agreed Value policy which is where both the vessel owner and the insurance company agree on a value for the boat and should it be written off, then this amount is paid out in full. This type of policy also takes into account that old items have depreciated and have less value but are still replaced with new ones. The majority of agreed amount value boat insurance policies necessitate actual cash value on specific destroyed assets like sails, protective covers, batteries, dinghies, trailers and aged outboard motors, lower drive units etc.

Essentially boat insurance covers two distinct areas; that of legal liability and that of damage or loss of property. The liability section covers the owner against claims by a third party if any damage is caused to that person or his property by the insured vessel. 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. A final piece of advice surrounds the liability section of the boat insurance and the need to ensure you are covered should legal charges be brought against you relating to a matter that is protected under the boat insurance.

Boat Insurance Policy

When it comes to filing an insurance claim on your boat, nothing is cut and dried.(Brief Article)…

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