You might not have thought about it, but boat insurance is probably the oldest kind of insurance there is. A boat, just like all vehicles is liable for an insurance policy, under the Marine Insurance Act. As with car insurance, policies come with an excess to discourage small claims and for boat insurance, this is usually quite a large sum of money, as the intention of the insurance is to cover you against substantial losses instead of just scratches and dents. Therefore the only real difference between the cover for boat insurance and that for car insurance is the amount.

Almost all states make the standard boat insurance a requirement so it is important to abide by the law and obtain boat insurance as soon as you become a boat owner. Strangely, in the eyes of the Marine Industry, a houseboat is in the same category as pleasure boats like sailboats, jet boats and cabin cruises for instance. If you are an owner of a speedboat for example, your insurance premium will be higher than for that of a fishing boat owing to the potential for a larger claim.

Almost all boat insurance policies will cover the cost of replacing the vessel, engine and the boat trailer but Actual Cash Value boat insurance plans only pay for replacement less any vessel depreciation from the point of loss. In the event of total damage, second-hand boat pricing directions and additional funds are used to decide the estimated market rate of the boat. Optional insurance usually includes coverage for reasonable repairs, emergency services to your boat, motor, or boat trailer, and wreck removal. Partial damage repairs on the other hand are calculated by working out the full charge to restore the boat minus deductibles.

Powerboat Insurance...

Agreed amount value boat insurance policies mean that the owner of the boat and the insurance company have decided on the cost of the boat, and in the aftermath of a total loss the owner will be compensated with that amount. This type of policy also takes into account that old items have depreciated and have less value but are still replaced with new ones. The majority of agreed amount value boat insurance policies necessitate actual cash value on specific destroyed assets like sails, protective covers, batteries, dinghies, trailers and aged outboard motors, lower drive units etc.

Most boat insurance policies can be broken down into two main areas; value of the property lost or damaged and that of liability. When an individual insures his boat for liability, it guards an individual against harm to another person’s assets brought about by the boat. At an early stage it is worth trying to employ the services of an insurance agent who has experience and a reputation for locating the best boat insurance and settlements for his clients. Equally important when searching for a boat insurance policy is to have one with good legal backup should it be necessary as a liability claim that is covered under the boat insurance policy be brought against you.

Powerboat Insurance

“FACT: Insurance Institute reports that more than 96% of Americans Overpay For Their Car Insurance…” - CLICK HERE!

Technorati Tags: boat trailer insurance, boat dock insurance, best boat insurance