What are your Boat Insurance Needs? from Schmeg.com

   

What are your boat insurance needs?

Before shopping for coverage, there is some boat insurance information that you should know. Boat and yacht insurance provides coverage for any physical damage to the boat if it is accidentally damaged or destroyed such as collision, fire, theft, vandalism and storm damage. There are two types of physical coverage that you can get depending on your boat insurance needs. The two basic types of physical coverage are Actual Cash value (ACV) and Agreed Amount value (AAV).

Actual Cash Value insurance is a policy that covers the replacement cost of the boat less the depreciation at the time of the loss. If the boat is totaled, pricing books are used to determine the approximate book value of the boat. In event of a partial loss, the amount of total money received by your insurance provided is calculated by the total cost of the damage minus the deductible.

Agreed Amount Value allows you to have a set agreement with your insurance company on the total money value of the boat. Incase of an accident, the insurance provider will provide the specified amount of money that was agreed to in the boat or mega yacht insurance policy. To insure the value of your boat and equipment, the agreed insurance value is generally the cost of these items minus an allowance for depreciation depending upon the age of the boat. For an additional premium, it is worthwhile purchasing a Waiver of Depreciation so that the insurance coverage will settle your claim for loss or damages without reducing it due to depreciation.

You need to select a liability limit, generally from $100,000 to $500,000, to cover theft, cost of repairs, removal of wreck, property damage and spilled fuel clean-up and disposal. Obtain an instant boat insurance quote for each coverage level and select the most coverage you can afford, especially if you have extensive personal assets that you could be sued for. Liability coverage can also pay attorney costs to defend you against claims.

Medical payment protection pays medical and funeral expenses up to the policy limit. These are usually much lower than the liability level but we recommend taking the maximum amount available. It also provides coverage for injuries suffered from an uninsured boater.

Bear in mind that unlike an automobile policy, an existing yacht insurance policy will not transfer to a replacement boat. Also keep in mind that a new boat is not automatically covered.