Where boat insurance is concerned, it is usually best to purchase coverage apart from a standard home insurance policy. Most homeowner’s policies limit or exclude boat-specific risks such as wreck removal, salvage work or environmental damage, but exceptions exist.
Many homeowner’s policies include coverage for smaller motors and vessels. While a policy rider may be adequate, the boat owner should ask the Boat Insurance Company in Elyria OH, questions related to damages and claim payments. Coverage almost never extends outside of a very small area and, if the boater plans to go farther away from shore, they may need a boat insurance policy. Below are some factors to consider when finding a marine insurance company.
Insurance Related Factors
Insurance companies consider a variety of factors when determining whether or not to insure a customer. Almost any boat may be insured for a certain price. Customers should consider these factors in assessing the suitability of a policy:
* The age of the vessel
* Boat value
* Speed rating/horsepower
* The vessel’s condition
* Primary residence status (applicable for houseboats)
* Vessel type and usage
* Ownership history
* Planned area of operation
Boat Insurance Types
Two basic kinds of boat coverage exist: cash value and agreed value. The main difference between the policy types is how depreciation is addressed. With a cash value policy, the buyer pays less up front, but depreciation is more of a factor. Agreed value policies cover the vessel based on its value at the time of the policy purchase. As a vessel ages, a Boat Insurance Company in Elyria OH, is more likely to require a cash value policy but they typically offer them at significant savings.
The location and nature of a person’s boating can determine the type of coverage that’s needed. “All risk” policies offer the most inclusive protection, but not every loss is covered. Typical exclusions are dents, wear and tear, design flaws, and ice damage. In some cases, extra coverage can be bought through , to pay for damages related to uninsured boater liability and towing assistance.
Buying Boat Insurance
The insurance purchase process should start with some research on the buyer’s part. Boating family and friends are a good source of recommendations, and reviewing an insurer’s past claims handling can yield clues as to the service quality a potential customer can expect. You can also visit their Facebook page for more information.