Have you just bought a boat and want to insure it? Depending on the coverage your boat insurance policy offers, the cost of any loss related to your boat will be more or less effective. To choose the right boat insurance, it is essential to consider certain criteria. What type of insurance policy should you choose? Which boat insurance guarantees to choose? What points deserve your full attention when reading the insurance contract? Here, we list the essential elements to consider when choosing your boat insurance.
Are Boaters Required to Purchase Boat Insurance in Florida?
Boat owners are not legally required to purchase boat insurance in Florida, but it doesn’t mean that they should skip it. Paying out of your pocket will be painful if something happens to your boat since your homeowner’s insurance probably doesn’t cover it.
The State law does not require you to buy boat insurance only if you own your boat free and clear. Otherwise, boat insurance will be required as part of the financing contract by your lender. And the marina may also require you to protect your boat with insurance if you keep your boat there.
Types of Boat Insurance
Coverage against physical damage or loss covers the hull of the boat, machinery, decorations, accessories and other furnishings that are permanently installed in it and can be chosen from:
- Current cash value insurance coverage or
- Agreed value coverage (agreed amount value)
You get better liability coverage with these boat-specific policies than you can get under a homeowners policy, but there are still palpable differences between these two coverage:
Actual cash value insurance coverage reimburse the cost of replacing damaged items less their accumulated depreciation at the time of loss. In the event of a total loss, resources are used to determine the cost of the used boat in the current market.
Partial losses are determined considering repair and replacement costs, less accumulated depreciation.
Insurance policies that provide negotiated or agreed amount value means that you and your insurer have agreed that you will receive a certain amount of money in the event of a total loss. This type of policy also replaces old insured items with new items in a partial loss, without reducing the replacement amount with accumulated depreciation.
Boat insurance also includes coverage:
- For bodily injury caused to another person
- For property damage done to someone else’s property
- Civil liability to cover legal expenses incurred by the boat used by any person who uses it with the owner’s permission
- Medical bills to cover expenses caused by injuries suffered by the owner and passengers of the boat
Essential Criteria to Consider When Choosing Boat Insurance
Larger or faster boats such as yachts, water sports vehicles, jet skis require a separate watercraft policy. The size, type, and value of the boat and the geographic region in which you operate it are some of the factors used to determine the cost of insurance coverage.
Most insurance companies offer liability coverage for boats starting at $15,000 up to $300,000 typically. Deductible for property damage amounts up to $250 in typical boat insurance. For theft, it is up to $500, and for medical payments, up to $1,000 deductible. However, you can obtain higher deductibles.
In addition, there are additional covers to protect the boat’s accessories and trailer. Boat owners should also consider purchasing umbrella liability insurance, which increases the coverage limits of this portion of insurance on their auto or home and boat policy.
Another element that must be properly considered is the coverage for special equipment used in the boat, such as fishing equipment, trailer, etc.
Boat owners need to ask specifically if their policy provides discounts in any of the following cases:
- If the boat operates on diesel fuel, which is less dangerous than the gasoline used by boats and reduces the risk of explosion
- If they have Coast Guard-approved firefighting equipment
- If they have marine radio equipment to contact land
- If they have not filed insurance claims for two consecutive years
- If they have other insurance with the same insurer, such as auto insurance, homeowners insurance, or umbrella liability insurance
- Whether the boat owners and operators have completed marine safety and education courses such as those offered by the Coast Guard Auxiliary, the US Power Squadrons, or the American Red Cross
General Liability Insurance Boca Raton, Florida!
Are you looking for General Liability Insurance Boca Raton in Florida? Contact the All Risk Insurance Group, a full-service insurance company serving the residents of Boca Raton, Florida and its surrounding areas. They are also one of the leading Deerfield Beach Business Insurance companies. Call (561) 395-5220 or visit their website for more information!