A boat owner shopping for coverage for his boat is well advised to try and get the maximum insurance permitted by his financial condition. Boat owners with a range of personal assets should try and get as much coverage as possible as they run the risk of being sued for those assets in the case of an eventuality.

It is beneficial to understand about the various insurance programs available and opt for those that are the most relevant to one’s situation. Factors that affect the choice of insurance programs include the area of navigation, cost of the boat, cost of maintenance, etc.

Boat owners can select a liability limit that generally ranges from $ 100,000 to $ 500,000. Liability coverage is useful for covering not only the cost of theft, repairs, property damage, etc but also for paying the attorney fees in the case of having to defend against claims.

The two main types of physical coverage include Actual Cash Value (ACV) and Agreed Amount Value (AAV).

The Actual Cash Value insurance policy provides coverage for the cost of replacing the boat after subtracting the cost of depreciation. If the repair costs exceed the actual costs of the boat, then the approximate book value of the boat is determined by using pricing books. If the boat is partially damaged, then the amount of money paid to the boat owner is equal to the difference between the total cost of damage and the deductibles.

The Agreed Amount Value insurance policy allows boat owners to insure their boat for an agreed total money value of the boat. This agreed value is the cost of the boat and equipment after allowing for depreciation. Boat owners can also apply for a Waiver of Depreciation which will allow them to claim full insurance that does not consider depreciation.

Boat insurance should include medical payment protection; this will cover the expenditure incurred on medicines and funeral costs up to the limit mentioned in the policy. It may or may not cover coverage for injuries from an uninsured boater; if such insurance is not provided then uninsured boater coverage should be obtained. Towing coverage is also important as it covers the costs of towing/rescue operations that may have to be executed due to mishaps, engine failure, mechanical breakdown, grounding, etc.

In deciding the amount of insurance required, one should consider the fact that total losses are not very frequent and hence coverage for total losses should ideally be the minimum amount that a boat owner can pay for with ease. On the other hand partial losses are fairly common and thus coverage should be obtained accordingly. It is also worthwhile to consider the fact that a percentage of the insured value is deducted; therefore, if the insured value is less it reduces the expenses that a boat owner bears from his pockets in the case of a partial loss. While trying to arrive at a figure for their boat insurance coverage, boat owners must factor in the minimum insurance required by marinas; a minimum of $ 300,000 is required by most marinas.

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A boat owner needs to be aware of the things that he should be looking out for while selecting a boat insurance policy.

While a low cost is always attractive, financial stability of the insurance provider is also an important consideration. Before a boat owner places his trust in an insurance company, it is essential that the reputation and bona fides of the company be verified.

The insurance provider should ideally be well-established and have the financial capability to fulfill a boat owner’s claim should the situation arise. Rating agencies are a good source of information on the financial stability of an insurance company. Quick, fair, and easy claim service is also related to the extent to which an insurance company is networked.

Boat owners should look for an insurance company that has sufficient insurance agencies, claim centers, and emergency services as a part of its customer service network. Good insurance companies usually have claim specialists available 24 x 7, 365 days a year for guiding insurance owners through the claims management process. A company that specializes in boat insurance, claims, licensing, policy issuance, etc is more likely to offer better service than a general insurance company.

An insurance company that faces fewer claims is probably patronized by safety conscious boaters and is likely to offer low rates. Boaters should check the claims history of the prospective insurance companies.

The best boat insurance company should be able to offer the maximum coverage possible within a boat owner’s financial capacity; it should have a range of insurance programs for a boat owner to select from and also be in a position to provide discounts on the rates if the boat owner qualifies for it by having completed a safety education program, having a good driving record, a good credit record, affinity group, multi-policy, renewal, etc. A risk policy with the minimum exclusions should be tried for. This helps to keep the cost of the policy down. It is advisable to check if a boat insurance company excludes certain types of situations/damages from their coverage policy, for example damage from underwater objects.

As mentioned above, even though insurance cost is an important factor in selecting an insurance provider, it is important to give equal thought to the type of losses that a company covers. At the very minimum, these should include coverage for accidents, towing, uninsured boaters, theft, fire, etc.

The Protection and Indemnity offered by an insurance company should offer sufficient coverage in case legal obligations to third parties arise due loss of property or life, physical injury, etc. This coverage is an inexpensive liability coverage program where the amount is not limited by the number of people involved in an incident.

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There are several ways in which a boat owner can bring down the premium that he pays on his boat insurance. A start can be made from researching the various insurance companies and comparing rates. This is because most insurance agents have a single lead company that they use.

The applications of boat owners are evaluated by the underwriters to determine the risk factor. The cost of insurance increases with the risk. Boat owners can reduce the cost of insurance by keeping in mind the following:

• Liability levels: The insurance rates increase with the protection required. Boat owners need to be aware of their coverage needs so that they can obtain an optimum coverage mix at the best cost without compromising on the security of the boat.
• Deductible: Deductibles for boats can range from $ 50 to $ 500. The cost of insurance reduces as the amount of deductible rises. Boat owners should strike a balance between the insurance amount and the agreed deductible so that they have the funds to furnish in the case of an eventuality.
• Safety equipment and safety courses: Insurance providers offer discounts if the boat is provisioned with safety equipment such as GPS, Ship to Shore, VHF, Fume detector, Halon system, etc. The Coast Guard certification course qualifies boat owners for a discount on the insurance costs. Basic safety courses are also offered by the United States Power Squadrons, United States Coast Guard Auxiliary, NASBLA, etc. These courses too allow boat owners to avail a discount on their insurance costs.
• Type and age of boat: The age, size, cost, power, etc are factors that can either raise or lower the insurance premium on a boat.
• Use and area of navigation: Boat owners should keep their area of navigation low and stay away from dangerous waters. Navigation areas associated with high risk attract high rates. The rates also vary with use that may be for personal, commercial, or charter purposes.
• Past driving record: The past driving record and accident claims of the boat owner can affect his liability in the evaluation of the undertakers. Also, a boat owner/operator with less than three years of experience in operating a boat will attract a surcharge on the insurance premium.

Other factors which a boat owner should consider in his efforts to reduce the premium to be paid include obtaining the insurance from a reputed insurance firm which can guide one on the policy most suited to ones’ needs and financial resources. Regulated use of the boat with lay-up periods in between usage helps to reduce premium rates. The insurance company should be apprised if the boat is secured in a harbor that provides safety from the elements and thieves. Some insurance companies also offer a multi-policy discount if a boat owner already has another line of insurance policies from the same company.

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A charter boat is a vessel that can be used for a fee for the purpose of fishing for food fish or shellfish for personal consumption and is also used for bringing the same into state ports.

Boat owners who occasionally charter their boats and full-time charter businesses are required to insure their vessels. The type of policy determines the coverage options and may include physical damage, uninsured boaters’ coverage, towing and assistance coverage, captain and crew liability, and medical payment coverage. Charter businesses such as boat excursions, fishing guides, sightseeing, day cruises, etc can avail charter boat insurance.

It is important that charter boats be insured as they are used more often than recreational boats, also the boat owner who charters his boat would not like take financial responsibility for another person’s actions. Although, standard boat and yacht insurance provides charter insurance, it is not as extensive as charter boat insurance. The rates of charter boat insurance are usually higher than those of standard boat insurance.

Types of charter boat coverage include the following:

• Part Time Charter Coverage: This policy allows charter for a certain number of days in the year. Paid crew can be added to gain income tax advantages.
• Full Time Charter Coverage: This coverage is for up to 365 days in a year and includes day trips, weekly charters, and extended charters. These policies allow the addition of paid professional crew.
• Six-Pack Charters: These charters allow up to 6 six guests aboard and are meant for smaller vessels. The U.S Coast Guard does not allow more than 6 guests on board non-certified vessels that are chartered.
• Jones Act/Paid Crew: As per the Jones Act, paid crew-mates aboard private and commercial yachts, who bait hooks, are required to add liability coverage to the policy.
• Coast Guard Certified Vessels: Vessels that carry more than 6 passengers need to obtain certification from the US Coast Guard. These vessels have several safety features and in most cases can have up to 49 passengers and 3 crew members.
• Bareboat Charters: Bareboat Charter coverage is for vessels that are chartered to a non-owner and no paid captain or operator is provided by the owner.

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House boating is an integral part of the lifestyles of several families in the US. Ideally, house boats should be insured against as many probable mishaps as possible. Insurance may also be required by a financing company if the house boat is being purchased on loan. Some marinas may dock only insured boats. There are several insurance companies that offer comprehensive coverage at competitive premiums.

The value of the hull is the most important factor considered while deciding the value of the house boat. Other factors influencing the insurance cost include the age, length, and current state of the boat. Risks related to location also affect the insurance costs. As the deductible increases, the premium drops. It may be beneficial to take help from a marine agent who knows the salient features of the several house boat insurance programs and the variables that need to be factored. A few house boat insurance options are given below.

• Roadside assistance: The cost of towing the boat is covered under this insurance.
• Towing: This helps in covering the cost of towing the vehicle on water.
• Uninsured boater: Useful for covering damages one may suffer in an accident with an uninsured boater.
• Fuel spill liability: It covers the cost of fines and cleaning up operations subsequent to a fuel spill by a boat owner.
• Wreckage removal: In the event of a major mishap, this insurance covers the cost of clearing the wreckage.
• Personal effects: This insurance helps to cover the cost of lost or damaged personal items that may be of significant value.
• Fishing equipment: House boat owners often misplace and lose expensive rods, reels, and baits. This insurance covers these articles.

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Motorboat insurance covers motorboats and powerboats and offers protection against accidents, damage, fire, etc. The liabilities covered include physical damage, fuel spillage, towing, personal effects, uninsured boaters, theft, natural disasters etc.

Motorboats enjoy tremendous popularity with boat users and are capable of high speeds that often result in accidents. The increasing sophistication in hull and engine technology has led to an increase in the price of motor boats. This has meant that an uninsured boat could result in significant losses.

New boat owners may be able to avail discounts on motorboat insurance. However, it is important to take note of the conditions that need to be fulfilled for a motorboat to be insured. These may relate to the area in which the boat is based; age of the boat; a valuation report; towing toys, bareboat charter, skippered charter, inflatables, racing motor boats etc may not get motor boat insurance.

Motor boat insurance offers coverage for the following:

• The whole boat: This includes the boat fittings, machinery, motors, etc.
• Personal effects: This includes boating footwear, fishing gear, ropes, life jackets, etc.
• Additional expenses: The insurance company will bear the transport cost of each member of crew in case of an accident.
• This coverage has an upper limit that may vary with the insurance provider.
• Fire and safety equipment: This covers the costs of recharging and refilling equipment.
• Legal liability: Liability limits vary with the insurance providers and can be as high as $ 1 million. It covers an insured boat being used by a person who is not the owner.

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Any boat that uses the wind as its primary means of propulsion is referred to as a sailboat. There are several insurance companies that provide insurance for sailboats; a boat owner should look around for companies that offer the most competitive rates and comprehensive coverage plans.

Sail boat insurance provides coverage for the following:

• Physical damage: This covers damage to the hull, machinery, electronic equipment used for maintenance, etc.
• Protection and indemnity: This covers liability arising out of damage to the property of other people and injury or death of others including the paid crew. This insurance offers coverage against liabilities that can be financially the most damaging for a sail boat owner with an uninsured boat. P & I is also crucial as it offers defense on a boat owner’s behalf.
• Medical expenses: Covers the expenses incurred due to injury on yacht. It extends to the yacht owner and the guests.
• Uninsured boater: This provides coverage for injury caused by an uninsured boater.
• Commercial towing and assistance: Bears the cost of hauling the sailboat back to the port if it has been rendered out of commission for some reason.
• Fuel spillage: It covers liabilities arising out of fuel spillage. This insurance covers for containment, cleanup, and damage to property.

It is advisable that the boat owner be aware of the warranties that are applicable to the policy. Warranties can be with regard to the area allowed for navigation, the seaworthiness of the boat at the time of leaving port, lay-up period, etc. If a boat owner defaults on these warranties, it may lead to voiding of the coverage.

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Boats that are over 26 feet in length generally fall in the category of yachts. Large sailboats and cruisers are also considered yachts. It is advisable to insure yachts as they are expensive luxury items and like other boats are susceptible to theft, fire, accidents, etc.

Factors such as the value, age, length, areas where the yacht sails, type of engines, etc determine the premiums. A provision of safety devices, prolonged lay-up periods, taking a boat safety course are some of the means of bringing down the premium amounts.

Yacht insurance covers property damage and liability, these are termed hull coverage and property and indemnity coverage, respectively. The entire yacht and equipment is insured under hull coverage and the insurance company pays for damage caused due to natural calamities, theft, vandalism, etc.

Indemnity coverage helps if a yacht owner is found to have caused damage to property or injury to a non-family member. It is available in increments of $ 100,000 at limits that exceed $ 1 million.

A hurricane protection endorsement bears the charges of towing the yacht out of the water if a hurricane warning is sounded and also pays for hauling the yacht back after the hurricane has subsided. Yacht insurances also cover watercraft such as trailers attached to the yacht and pays for damage to these watercraft.

Yacht insurances are often accompanied by warranties such as a navigational warranty that limits yacht activity within a certain area; under a lay-up warranty a yacht is required to remain out of operation during certain periods in the year.

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Insurance companies provide the facility of online quotes for their insurance programs. The service is available 24 x 7; interested boat owners are saved the effort of visiting the insurance company’s office. Researching and comparing quotes online can save a boat owner hundreds of dollars and also apprise him of the types of insurance covers available in his state and those that he qualifies for.

There are websites offer online quotes gathered from several insurance companies that offer coverage for boats. In case, a quote request requires a review from the insurance company, the quote is emailed within twenty four hours. Quotes can also be delivered by fax and email.

The process of obtaining a quote involves submitting basic personal information and some details about the boat. Personal information includes name, address, marital status, status of current policies, if any. Information regarding the boat includes type of boat, hull type, boat length, boat age, number of drivers, owners of the boat, etc. These factors govern the risk involved and influence the insurance premium rates. A comparison of online boat insurance quotes offered by different insurance companies enables a boat owner to gain an idea of the price range for the kind of insurance he is looking for.

While obtaining quotes online helps save time and enables in-depth comparisons, it is up to the boat owner to verify that the insurance company he chooses deal with is a reputable and well established. Low quotes may sometimes be an indicator of the company not being on the level in their dealings.

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