Policies and Benefits of Boat Insurance Coverage
Any boat owner who has ever dodged a reckless operator knows how easy it is to damage a boat. A boat is a valuable asset, which could take years to repair if the owner lacks an insurance coverage. Some items stored in a boat may also be valuable and more expensive to replace if damaged in a boat accident. A boat insurance policy provides financial protection for any unforeseen event that damages your boat and covers any costs that the owner may be liable for after an accident.
How the Insurance Works
Some of the risks that boat operators are susceptible to include hurricanes, theft, capsizing, and fires. The right insurance coverage protects boat owners from massive financial costs while companies may deny coverage if the policyholder is underinsured. The insurance company and the boat owner sign a contract that confirms policyholder’s agreement to pay premiums in exchange for a promise to settle any covered losses. It is not a legal requirement to acquire an insurance policy for your boat, although lenders and banks may require a proof of coverage before they lend you money.
Various Insurance Policies
It is important to understand the boat insurance underwritings before purchasing it to avoid surprises in future. A policyholder should be aware of the risks such as the damages related to poor maintenance that the insurance company does not cover. Some of the policies covered include:
Property damage – this is coverage for any permanently attached equipment on the boat such as motors, masts, anchors, oars, and fuel tanks among others. However, this does not cover the personal property of the boat and any item damaged during an official race.
Limited medical payment- the policy provides medical care coverage for any other person other than family member injured while on the boat.
Personal liability- it covers any lawsuit and claims after bodily injury or damage to property caused by the use of the boat.
Other insurance policies that a boat owner may consider purchasing include personal belongings and uninsured boat owner coverage. A boat operator is also open to numerous discounts such as full payment, boat accident-free, homeowner, multi-boat, safe operator, multi-policy, and safety course among others.