You might not have thought about it, but boat insurance is probably the oldest kind of insurance there is. Under the Marine Insurance Act, a boat is just as liable for insurance as any other type of vehicle. 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. So the major difference between boat insurance and car insurance is the amount of coverage a policy provides.

As soon as you become a boat owner in America, most states will require you to have a boat insurance policy in force. 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. When the craft is a complete insurance right-off then the second hand value of the boat is used to estimate its market value. If you require insurance to cover for additional situations like emergency services to your vessel, repairs, boat trailer and wreck removal for instance then it is possible to take out an Optional Insurance Cover. Where there has only been limited damage to the vessel, partial damage repairs include the restoration less any items that can be deducted.

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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. Another benefit of Agreed value policies is that old items are replaced with new, irrespective of the value of the items being replaced. However, Agreed Value boat insurances policies require a cash value to be given on many onboard items such as sails, outboard motors, dinghies for instance and these will need to be agreed before the policy commences.

Most boat insurance policies can be broken down into two main areas; value of the property lost or damaged and that of liability. Liability insurance is there to cover against claims by another person that the insured vessel caused damage or injury to a third party. Remember to try and find a boat insurance agent with a good reputation of getting the best possible policies for his clients and a good record in claim settlement. Make sure your boat insurance policy also has provisions for lawful protection, in case one is charged for something that is protected under the boat insurance.

Shopping for insurance.(boat-and-trailer insurance): An article from: Trailer Boats…

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