Small boats such as canoes, small sail boats or small power boats with less than 25 mile per hour horse power are usually covered under a homeowners or renters insurance policy. Coverage is typically about $1,000 or 10 percent of the home's insured value and generally includes the boat, motor and trailer combined. Liability coverage is usually not included–but it can be added as an endorsement to a homeowners policy.
Larger and faster boats such as yachts, and personal watercraft such as jet skis and wave runners require a separate boat insurance policy. The size, type and value of the watercraft in which you use, factors into how much you will pay for insurance coverage.
For physical loss or damage, coverage includes the hull, machinery, fittings, furnishings and permanently attached equipment as part of either an actual cash value policy or on an agreed amount value basis. These policies also provide broader liability protection than a homeowners policy. But there are distinct differences between the two types of policies.
Actual Cash Value policies pay for replacement costs less depreciation at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the watercraft’s approximate market value. Partial losses are settled by taking the total cost of the repair less a percentage for depreciation.
Agreed Amount Value basis policies mean that you and your insurer have agreed on the value of your vessel and in the event of a total loss you will be paid that amount. Agreed Amount Value policies also replace old items for new in the event of a partial loss, without any deduction for depreciation.
Physical damage exclusions might include normal wear and tear, damage from insects, mold, animals (such as sharks), zebra mussels, defective machinery or machinery damage.
Al DeLeon & Associates will be happy to review your current boat insurance policy and can help make your time on the water relaxed and worry-free! We will find you comprehensive boat insurance that protects you, your friends and family, your watercraft and your boating equipment. The average boat costs less than a dollar a day to insure. You’ll enjoy being on the water even more when you aren’t worried about your safety, the safety your passengers, or your investment.
Here are some items you’ll need to consider when shopping for boat insurance:
There are thousands of recreational boating accidents per year. Every need is unique – Contact us to find out how to get the best boat and watercraft insurance coverage for you.
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I take great pride in the excellent service we provide our clients. Our rates are highly competitive and we offer high quality protection and always give friendly, fast and courteous assistance.
- Al DeLeon