Tuesday, July 14, 2009

Things To Know Before You Buy Boat Insurance

By Trent Trebler

When looking around to buy boat insurance, reading the fine print and being in the know about policies that will best suit the boat owner's requirements will entail cost savings and the best coverage and product value.

The insurance requirements will depend on the type and age of one's boat, one's experience in navigating both land and water, location where the boat will be used and any previous insurance claims. A trusty sailboat will have a different insurance requirement compared to a fast powerboat.

The condition of the boat, from cracks, chips, and hull problems will come into play before insurance is obtained. Most insurance companies require a Condition and Value Surveys

People who own fishing boats for recreational purposes and looking to buy boat insurance will find that just like car insurance, insurance for boats may include on-the-water towing, as well as roadside assistance services. One of the differences between car insurance and a boat insurance, though is that with the latter, the policy, in most cases, remains in force only in certain cruising areas.

Aside from the useful information available on the Internet, boating enthusiasts may also turn to their boat-owner friends for pieces of advice or recommendations and insights gained by rule of thumb, especially when it comes to coverage and the companies that are worth transacting business with.

Most boat insurance guides will also give novice boat answers several points and terminologies to mull over, notably actual cash value and agreed value policy. Actual cash value is hinged on the boat's market value, condition and age at the time of damage/loss.

The agreed value, which does not apply to personal watercraft, will cover the value stated in the policy in the event of untoward incidents leading to total damage or loss of the boat. Even with partial loss, the agreed value policy will facilitate the replacement of most items with minimal or no depreciation at all.

This depends also on the carrier, which is another important consideration before setting out to buy boat insurance.

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