Boat Insurance

Overview

If you own a pleasure craft or any other boat, then it will perhaps be one of the most valuable and treasured possessions you have. It is also quite vulnerable to damage from storms, accidents and/or loss. Boat insurance insures your precious possession against all the above vulnerabilities. It gives you peace of mind by protecting you against most risks of owning and operating a boat, its motor and the trailer.

Boat insurance has a long history that stretches back to England. In the early 1800s, the common laws dealing with merchant marine vessels were merged and companies began to insure cargos and ships against loss by storms and other risks. Lloyds of London was one of the first insurance carriers.

The modern boat insurance is actually one of the oldest types of insurance, springing from these early marine vessel insurance policies.

How It Works

Just as with car insurance, there are different types of specialized coverage you can choose from. For instance, you can opt for coverage for roadside assistance, to have your boat towed if your trailer is covered and even water towing for times when your boat breaks down.

There is also uninsured boaters coverage, fuel spill coverage, and storm damage coverage. Each of these types of boat insurance covers a different aspect regarding your vessel, and they are all good for the things they cover.

If you travel at all with your boat, make sure that your boat insurance coverage goes with you. Some companies that provide boat insurance restrict where you can and cannot take your boat, or may only cover your boat in certain situations and locations. So make sure your boat insurance travels with you.

Last but not the least, many people simply obtain a low level of coverage for their boat or vessel, but just as with other types of insurance, boat insurance should be for the replacement value.

Some people have a rider on their homeowner policy that will cover their small boat or pleasure craft. This is fine if you have a smaller boat, but if you have a vessel of any size then it is advisable to obtain an individual boat insurance policy that is separate and not part of any other policy that you currently own.

Benefits

As discussed above, we can see that having a boat insurance policy can go a long way in giving you complete peace for mind. Depending on what type of policy you have chosen, you can be completely safe and protected from huge financial expenses in a variety of situations ranging from breakdown of your vessel, to damage and theft. Just ensure that you have the right kind of policy that suits your needs and situations.

Cost/Pricing

Boat insurance is provided for a variety of rates. Just as in car insurance, this largely depends on the type of vessel, its age, and other factors. When looking for a boat insurance, it is a good idea to have your vessel covered for replacement loss coverage, so that if your boat is destroyed or is totaled, that is the cost of repairs exceeds the value of your vessel, then you can have enough funding to replace it. Some boat insurance policies offer replacement cost coverage, but it is not always covered so you have to ask for it.

Although price is an important factor, you need to understand and weigh the benefits of your marine insurance policy and the services behind it. Find an optimum balance financial security and price. Make sure you understand your policy and also the fact that the lowest price is not always the best protection.

Timing

You can never predict when an unfortunate mishap may hit your vessel and you definitely cannot wait for it to strike you. So, as soon as you decide to purchase a vessel, simultaneously shop for boat insurance as well.

Companies/Industries

In the United States, boat insurance is covered by many of the same companies that offer car insurance and motor vehicle insurances. It covers a vessel or pleasure boat, against damages from a variety of causes including theft, vandalism, or other accidents. Large companies such as Geico, Allstate Insurance, and Progressive offer replacement value boat insurance coverage.