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Introduction:
Owning a boat not only offers you the luxury of sailing across the open water whenever you please, it also exposes you to some risks and liabilities. These problems can be exacerbated with a lack of adequate insurance coverage when the need for it arises. This paper aims to help readers understand the basics of boat insurance, including its coverage options, policy options and the dynamics that affects its premiums. Thesis Statement: Understanding the basics of boat insurance is a step in the right direction for boat owners as it would enable them to rightly make informed decisions regarding their choice of coverage and premiums. The Types of Boat Insurance Coverage Property damage coverage protects against physical damage to the boat caused by accidents, vandalism, theft or acts of God. Finding a policy that would replace your boat for what it would cost new, with no deduction for depreciation or write you a check for what the vessel was worth when it was totalled, is also a possibility. This is called the replacement cost coverage. Liability coverage deals mainly with sickness or injuries that occur on your boat as well as things that you do with your boat. Liability coverage usually does not pay for your mistakes on your new rear deck or your swimming platform. Instead, liability insurance pays other people for things you do wrong. Boat Insurance Policy Options If you have a nice boat you probably want to continue owning a nice boat or even better. Most people buy a boat that they believe will make them happy. People, who start boating when they are 40 years old, usually want their 40 footer to only be 5 years old when they are 50 years old. Many people who would like their boat to be 5 years old to be five years old when they are 50 buy a boat insurance coverage called replacement cost. If your boat is covered under a replacement cost policy you would be paid for what it would cost you to buy a boat like your old boat now. It would usually not matter how old your old boat was. What affects boat insurance premiums Several factors are from which the vessel is valued- the age, value, use, size and type, speed, condition and contents of the vessel. Where you will be cruising and whether or not you have had prior claims also affects your insurance premium. New boats are usually more expensive to insure than old boats. Can you imagine what it would cost to pay for a brand new 30 foot boat if your year old boat suffered a total loss in a fire? Would the water guns and your fishing gear still be okay? That is why new boats usually cost more to insure than old boats. Boats with 600 horse power engines, those that go faster than 60 miles per hour, racing boats and commercial boats are all usually more expensive to insure than other types of boats.
