With the warmer temperatures and sunny skies near, boating season is officially here! As you prepare your boat and look to embrace the summer season, do you ever wonder if you have adequate coverage or what else determines your insurance rate? Let us share some boating information with you.
Your basic boat policy will include Physical Damage, Liability, and Personal Property coverages. Physical Damage covers the boat in the event of collision, sinking, fire, and/or theft. In some cases, it may also cover your motor, auxiliary and fishing equipment. Liability protects you in the event of personal injury and/or damage to someone else’s property. Personal Property coverage extends to the personal belongings on the boat, including your clothes, entertainment equipment, etc.
Other characteristics that could factor into the pricing of a policy may include:
- Age of Boat -- how old is your boat?
- Length -- What is the size of your boat?
- Value – How much is your boat worth?
- Speed/Horsepower – How fast is your boat?
- Type --- Is your watercraft an Inboard, Outboard, utility, cruiser, bassboat, saltwater fishing, or performance boat?
- Territory/Usage -- Will you sail your boat on an ocean, lake, bay, or river? Are you using this boat as a primary residence? Is it being used for racing purposes?
Valuation methods also factor into pricing and determine how much you will be paid in the event of a loss. The two most common valuation methods are Agreed Value and Actual Cash Value. “Agreed Value” is based on the boat’s value when the policy was written. While it can cost more up front, there is no depreciation for a total loss of the boat. On the other hand, “Actual Cash Value” will only pay up to the value of the boat at the time the boat was lost or damaged. These policies cost less up front, and depreciation is factored into the valuation.
Have more questions about your rate and the opportunities you may have to increase/upgrade your coverage? Feel free to contact us so that we can review your options. Otherwise, it’s time to sit back, relax, and enjoy your time in the sun on your boat!