by Administrator
19. August 2013 13:07
As exciting as it is to buy a boat, it is important to be objective about your boat insurance, and ensure that you have your boat covered for all possible damage that can be incurred while using your boat. Boat insurance can be viewed as a combination of home insurance and auto insurance, in the sense that it should include liability coverage for anyone who might get injured while on your boat, and should also cover bodily injury inflicted on others, property damage of the owner or others, and physical damage caused by your boat.
In addition to this basic coverage, insurance experts at Shawn Camp Insurance, Austin TX also recommend purchasing comprehensive coverage for your boat, which covers damage in curred by theft, vandalism, unfavorable weather and water conditions, personal property coverage, roadside assistance, uninsured boater insurance, damage due to molds, insects, animals, and machinery defects, additional premiums for valuables on your boat, etc.
It is a good idea to combine your boat insurance with your home insurance and auto insurance, as this could get you a “cross-sell discount” from your insurance company. This could lead to savings of up to 15% on your total insurance costs. While insurance for small boats like sailboats is typically included in your home insurance policy, you need to purchase separate insurance for higher value boats.
The following breakdown of boat insurance coverage can help you to understand what you need to include in your policy:
- Bodily injury liability: This covers damage caused by an accident involving your boat, in which other people incur injuries. It includes medical expenses, lost wages, defense costs, pain and suffering compensation, etc. for the injured party.
- Property damage liability: You need this coverage if your boat causes damage to others’ property. For instance, if an accident involving your boat damages another boat or dock, the property damage liability in your policy will cover this damage. The coverage can be provided in the form of a pre-decided cash value, or complete replacement cost, depending on the nature of your policy.
- Physical damage: This type of coverage includes damage to your own boat, caused by collisions, unfavorable weather, vandalism, sinking, mischief, etc. The parts of the boat that are typically insured under this coverage include machinery, furnishings, sails, and the hull.
As mentioned above, getting comprehensive coverage for your boat is a good idea, as it covers a wide range of possibilities that might not be included in the aforementioned options.
