Boat Insurance is coverage provided to owners of boats to cover the loss or damage to their vessel, or any cargo on board, between the points of origin and destination. Everyone who owns a boat needs to ensure that they, their vessel and their belongings are adequately protected in the event of an incident.
Although owners are not legally required to hold boat insurance to sail, it is always highly recommended for the protection of yourself and others in the same way that it is advised to obtain home insurance. Damage to your boat, or even someone else’s boat could cost a lot of money, particularly if it is damaged beyond repair. A sufficient insurance policy will be able to protect you against any financial loss in these circumstances.
If there are any complex arrangements relating to your boat such as mooring or shared ownership arrangements, it is important that you make your insurance provider aware. Boat insurance is not available off the shelf as every individual and vessel has different requirements so it is essential that you ensure your boat is fully covered in every possible event.
There are a number of points to consider when purchasing boat insurance, such as whether the policy sufficiently covers your vessel against damage to someone else’s property and whether additional cover is appropriate. One of the most significant downfalls for the majority of boat insurance policy holders is whether the loss settlement basis is Agreed Value or Actual Cash Value. The loss settlement basis could see you losing money as Actual Cash Value will only pay for the current market value of your boat, but Agreed Value cover does generally have a higher annual premium.
Dont get caught out by a confusing policy agreement, ensure that you are fully aware of the terms before you commit to anything. If your policy is underwritten by an insurance provider will experience of marine policies, they should be able to answer any questions you have. The loss settlement is just one of the common stumbling blocks, so keep your eyes peeled for this in your policy.