Boat Insurance

Boat Insurance

Boat insurance has many terms specific to the marine insurance industry that can be confusing. The best way to illustrate a boat insurance policy and what is covers is to define some of the coverage terms. Keep in mind there are substantial underwriting differences depending on whether you own a fishing boat, yacht, sailboat or ship. Other qualifying characteristics include: inboard, outboard, HP, types of waters navigated (salt or fresh), length, maximum speed, operators, experience and use.

Included below is a short glossary of some boat and marine terms but not all:

Agreed Value: With this policy type, your insurance carrier and you agree on the value of your hull and hardware when the policy begins. In the event of a total loss of the boat, this will be the amount that you receive from the policy. An agreed value policy differs from actual value, in which you would be compensated for the current market value of the boat in the event of a claim.

Blue water: Commonly referred to when determining the navigational territory of your vessel; refers to waters over five miles from land.

Brown water: Commonly referred to when determining the navigational territory of your vessel; refers to waters within five miles of the coast.

Date Restrictions: With some policies, your boat is only insured during specific dates of the year. This can potentially lower your insurance payments in months where you anticipate being unable to use your boat due to weather.

Emergency Services: This coverage includes the recovery of a sunken boat, towing on a body of water, or a trailer. Clarify what your emergency policy covers with your agent, as this varies from policy to policy.

Lay-Up Period: The time during which you will not be using your boat. If you have a policy that includes a lay-up period, be aware of the dates. Using your vessel during lay-up means that you will not be covered by your insurance.

Navigational Limits: Your policy may outline specific limits to where you can use your boat and be covered. It is important to only operate your vessel within these limits and clarify with your agent exactly where you are covered. Some policies may only cover you within a certain distance from land; others may not cover you if you’re boating outside your home state. Be sure to talk with your underwriter so you understand exactly where your vessel will be insured.

Operators: People who will be operating the boat – often used to determine premium payment rates.

Pollution Liability: If included in your policy, this coverage will help cover you in the event of a fuel or oil discharge into the water.

Towing Liability : It is necessary to include this overage in your policy if you anticipate towing or pulling anything behind your boat.

Other qualifying characteristics include: inboard, outboard, HP, types of waters navigated (salt or fresh), length, maximum speed, operators, experience and use.

Included below is a short glossary of some boat and marine terms but not all:

Agreed Value: With this policy type, your insurance carrier and you agree on the value of your hull and hardware when the policy begins. In the event of a total loss of the boat, this will be the amount that you receive from the policy. An agreed value policy differs from actual value, in which you would be compensated for the current market value of the boat in the event of a claim.

Blue water: Commonly referred to when determining the navigational territory of your vessel; refers to waters over five miles from land.

Brown water: Commonly referred to when determining the navigational territory of your vessel; refers to waters within five miles of the coast.

Date Restrictions: With some policies, your boat is only insured during specific dates of the year. This can potentially lower your insurance payments in months where you anticipate being unable to use your boat due to weather.

Emergency Services: This coverage includes the recovery of a sunken boat, towing on a body of water, or a trailer. Clarify what your emergency policy covers with your agent, as this varies from policy to policy.

Lay-Up Period: The time during which you will not be using your boat. If you have a policy that includes a lay-up period, be aware of the dates. Using your vessel during lay-up means that you will not be covered by your insurance.

Navigational Limits: Your policy may outline specific limits to where you can use your boat and be covered. It is important to only operate your vessel within these limits and clarify with your agent exactly where you are covered. Some policies may only cover you within a certain distance from land; others may not cover you if you’re boating outside your home state. Be sure to talk with your underwriter so you understand exactly where your vessel will be insured.

Operators: People who will be operating the boat – often used to determine premium payment rates.

Pollution Liability: If included in your policy, this coverage will help cover you in the event of a fuel or oil discharge into the water.

Towing Liability : It is necessary to include this overage in your policy if you anticipate towing or pulling anything behind your boat.

Let us give you a quote today and wrap up a package boat insurance policy with the right coverage that suit your needs.

Sailboat

 Connell Insurance Agency, Inc. – “Protecting What’s Important To You”

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