| Boat owners should understand how marine insurance | | | | should be able to differentiate an insurance |
| differs from that of your car. There is little difference | | | | settlement which is based on either an agreed value |
| between the two types of policy except the amount | | | | or actual cash value.o Agreed Value: Reimburses the |
| of cover provided with boat insurance is considerably | | | | insured for the amount listed on the policy in the |
| larger. | | | | event the vessel is a total loss.o Actual Cash Value: |
| Though one goes by land and the other by sea, | | | | Takes into account depreciation and the condition of |
| there are variations beyond the basic coverage | | | | the boat at the time of loss. The latter option |
| common to both. In fact boat and yacht policies can | | | | provides less coverage but the premium is usually |
| even vary between companies that specialize in | | | | reduced. |
| marine insurance. | | | | Other additional marine coverage includes:o Medical |
| The standard policy, the watercraft liability insurance | | | | Cover: Pays your first aid, ambulance and hospital bills |
| coverage, is required by law in most states. This | | | | in case of accident. Also covers any passengers |
| insurance policy provides coverage in the event that | | | | injured on your boat.o Towing and Assistance: Pays |
| damage occurs to a person or property as a result | | | | for emergency assistance such as boat towing, |
| of actions taken on your boat. This is true whether | | | | emergency repairs while underway or fuel delivery at |
| or not it is during transportation or actually on the | | | | sea.o Personal Property: Reimburses for loss of |
| water. This is a law requirement in having this type of | | | | personal effects, clothing, fishing gear and more.o |
| liability coverage, and each area will have its own | | | | Uninsured Boater: While not mandatory, this coverage |
| requirements as to how much you will need. It is | | | | compensates you and your passengers for injuries |
| wise to consult with an insurance agent to find out | | | | caused by another boat owner who carries no liability |
| what is necessary to meet the requirement of the | | | | insurance. |
| law. | | | | How much your insurance will cost depends on |
| Liability and physical damage coverage form the core | | | | several factors, including the value of the boat, its |
| of any marine policy. | | | | length, age, the type (sail or power), mooring |
| Liability Coverage: This covers legal obligations to third | | | | location, intended area of navigation and how high a |
| parties due to injury, loss of life or property damage. | | | | deductible you choose. You can reduce your premium |
| Physical Damage Coverage: This type of coverage | | | | by accepting a higher deductible, reducing your area |
| reimburses for any damage to the boat and its | | | | of navigation, installing safety devices like a fire |
| machinery. The best physical damage policy is an all | | | | extinguishing system in the engine compartment or a |
| risk which covers any cause of loss not specifically | | | | vapor detector in the bilge. |
| excluded in the policy, like wind storms, vandalism and | | | | Finally, when shopping for boat and yacht coverage, |
| collisions with the dock. It is recommend that you | | | | compare quotes and speak to the experts in marine |
| select a policy that continues to cover your vessel | | | | insurance. Insurance agents outside the field often |
| even when it is stored or being transported by trailer. | | | | lack expertise in providing adequate protection for |
| When comparing physical damage coverage you | | | | seagoing captains. |