Do You Really Need Boat Insurance?

Posted on April 28, 2009
Filed Under Boat Insurance | Leave a Comment

We live in a world that appears to need insurance for everything but in all probability the oldest sort of cover is that surrounding sea going vessels or yacht insurance. All marine watercraft as quoted by the marine Insurance Act must have insurance before they are allowed to sail.

Policies like this, and many other sorts, come with an excess designed to stop individuals claiming on it for small amounts therefore it is generally much higher than it would be for a car say. So the major difference between yacht and motorcar cover is the amount of coverage a plan provides.

Standard boat insurance is a legal requirement in most US States and should be something that is done as soon as a individual acquires the boat. Strangely, in the eyes of the marine Industry, a houseboat is in the same category as pleasure boats like sailing boats, jet boats and cabin cruises. A speedboat for instance, is capable of high speeds requires a much different type of insurance than a small fishing vessel would because of the potential liability for the insurance underwriter that comes with a speedboat compared to a fishing yacht.

Actual Cash Value yacht insurance policies cover the cost of the vessel replacement less any depreciation form the time of the boats loss whereas most yacht insurance policies will pay for the replacement of the craft, the engine as well as the trailer.

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 Ex Gratia Insurance cover. Partial damage repairs on the other hand are calculated by working out the full charge to restore the yacht less deductibles.

Agreed amount value yacht insurance plans mean that the owner of the yacht and the insurer have decided on the cost of the yacht, and in the aftermath of a total loss the owner will be compensated with that amount. Another benefit of Agreed value insurance policies is that old items are replaced with new, regardless of the value of the items being replaced. The bulk of agreed amount value boat insurance plans necessitate actual cash value on specific destroyed assets like sails, protective covers, batteries, dinghies, trailers and aged outboard motors, lower drive units etc.

The two chief aspects of yacht insurance are legal duty, or security and insurance or property loss. The liability section covers the owner against claims by a third party if any damage is caused to that individual or his property by the insured vessel.

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 customers. Make sure your plan also has provisions for lawful protection, in case one is charged for something that is guarded under the yacht insurance.

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