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. So the major difference between boat insurance and car insurance is the amount of coverage a policy provides.

Standard boat insurance is a legal requirement in most American States and should be something that is done as soon as a person acquires the vessel. 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. A speedboat for instance, is capable of high speeds requires a much different type of insurance than a small fishing vessel would because of the potential liability for the insurance company that comes with a speedboat compared to a fishing boat.

Most boat insurance policies should cover your boat, the motor, and the trailer used to transport the boat, but Actual Cash Value boat insurance policies finance replacement costs, minus depreciation at the point of the loss. Usually when a boat has been damaged beyond repair, its current market rate is calculated using second hand values as a guide. 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.

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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. Agreed amount value policies also replace old objects with new ones, exclusive of any assumption for depreciation. 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. Equally important when searching for a boat insurance policy is to have one with good legal backup should it be necessary as a liability claim that is covered under the boat insurance policy be brought against you.

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Shopping for insurance.(boat-and-trailer insurance): An article from: Trailer Boats…

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