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Boat Insurance Buying
Tips and tricks for finding the right boat insurance for your new or used boat.
Boat insurance policies can vary widely from one company to the next, unlike home or auto insurance.
Ask People You Know
One way to find a great boat insurer is to ask relatives and friends who have had a boat insurance claim in the 6 months to 1 year. Boat insurance companies may be good at taking monthly premiums, but how a company reacts when something goes wrong is a better much better indicator of how they will be as a new or used baot insurer.
You can also look up boat insurance carriers at www.ambest.com/ratings. These ratings are the boat insurance industry's benchmark for assessing a boat insurer's financial strength. We suggest looking for a boat company that has an "A" (excellent) rating. State insurance regulatory agencies are also a good reference and can be always found online.
Your Homeowner's Policy...
You should consider purchasing a separate insurance policy for your new or used boat, rather than adding it to your homeowner's policy. Adding a boat to your insurance policy has certain marine-related risks such as salvage work, wreck removal, pollution or environmental damage. Whatever dollar amount the boat is insured for, it should have a separate but equal amount of funds available for any salvage work. This means that you're compensated for the loss of your boat and not having to pay additional, out-of-pocket costs to have a wreck removed from a waterway.
Actual New or Used Boat Value vs."Agreed"
This is the main choice that a boater faces and depreciation is what sets them apart. An "agreed value" insurance 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.
Remember, Your needs first!
A good insurer will tailor your coverage to fit your needs so there will be no surprises. For example, bass boaters may need fishing gear and tournament coverage as well as "cruising extensions" if they trailer their boat far from home. You may want "freeze coverage" if you live in a temperate state because ironically, that's where most of this kind of damage occurs. "Hurricane haul-out" coverage helps foot the bill to move your boat to dry ground.
(Thank you Boat U.S., the nation's largest recreational boat owners association, for this information)
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