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Boat insurance

Be Informed on Boat insurance

Boat insurance is exactly what the name implies in that one achieves coverage protection for their boat when purchasing a policy. The coverage provides financial protection for any type of damage to your boat and for those times damage happens to someone’s else’s boat or property as a result of the operation of the policyholder’s boat.

There are several types of coverage you can buy in protecting your boat. The first type, which is known as “”agreed upon hull value,”” provides coverage for the value of the boat and is agreed upon by you and the insurance company the policy is first created and put into effect. Should the boat be declared as a total loss due to a covered peril or incident, this is the amount the insurance company will pay out to you.

Another option is called “actual cash value” coverage. This type usually results in lower premium payments but the policyholder will normally see less of a payout when faced with a total loss. The insurance provider pays out for the market value the boat, which is calculated by a number of factors, such as the type of boat and how it was used at the time of the total loss.

There is the option of a liability-only policy that doesn’t cover the physical loss of your boat but rather assists in paying off costs one faces when he or she is found responsible for damaging another’s property. There is also the option of coverage that handles the towing and salvage of your boat should there be total loss experienced.

These policies will often cover the total cost of salvage, regardless of the type of policy one carries. Most will include medical coverage that is put in effect if you or your passengers are hurt onboard the covered vessel. Most will also pay out to handle the costs of fuel spill cleanup. This is an aspect that is unique to watercraft coverage as fuel cleanup on the water is very intensive and costly. Rather than glass and metal being tossed out across a highway with a car accident, a boat wreck can result in some dangerous chemicals spilled into the water. Good boat insurance coverage means that policyholders won’t be financially responsible for the cost of chemical cleanup.