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. As with car insurance, policies come with an excess to discourage small claims and for boat insurance, this is usually quite a large sum of money, as the intention of the insurance is to cover you against substantial losses instead of just scratches and dents. There is little difference between the two types of policy except the amount of cover provided with boat insurance is considerably larger.

Almost all states make the standard boat insurance a requirement so it is important to abide by the law and obtain boat insurance as soon as you become a boat owner. In the marine insurance industry, houseboats although generally only moored, are categorized as a pleasure boat together with jet boats, ski boats, sailboats, cabin cruisers and party boats. 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. Usually when a boat has been damaged beyond repair, its current market rate is calculated using second hand values as a guide. 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. Where there has only been limited damage to the vessel, partial damage repairs include the restoration less any items that can be deducted.

Boat Safe Insurance...

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. 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.

Most boat insurance policies can be broken down into two main areas; value of the property lost or damaged and that of liability. 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 Safe Insurance

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