Tips for Choosing Boat Insurance
Unlike home or auto insurance, boat insurance can vary from company to company. Keep reading for some tips to help you determine which boat insurance is the right one for you.
Know Your Insurer: Take the time to talk with a broker when shopping around. Don’t just look at the policy they are offering you, consider, their customer service rating and approach with you. As their customer, you want to know that should you need to make a claim, you should know that they are going to be there to help you through your problem.
Share or Separate Policy: When choosing the right insurance for your boat, check to see if having your home and boat on the same policy is going cost you more or save you money. Some insurance companies offer bundle discounts, while others may charge you more to insure multiple of your items with them. Make sure that you receive the best rate and coverage for all of your insurance needs.
Agreed Value vs. Actual Cash Value: These are the two main choices that boaters face and depreciation is what sets them apart. An “agreed value” policy covers the boat at whatever value you and your insurer agree upon. While it typically costs more up front, there is no depreciation if there is a total loss of the boat (some partial losses may be depreciated). “Actual cash value” policies, on the other hand, cost less up front but factor in depreciation and only pay up to the actual cash value at the time the boat is declared a total or partial loss or property was lost.
Additional Coverage: When having your policy written up, make sure that your broker takes into account, the full picture of how and where you will be using your watercraft. Depending on if you travel far distances with your boat or live in places with inclement weather, you may want additional coverage to make sure you and your boat are adequately protected.