Common Mistakes Made Purchasing Boat Insurance

One of the biggest mistakes made when buying boat insurance, is assuming that all policies are the same. Well your assumption could cost you dearly. There isn't a standard Boat insurance policy and you might discover some gaps should you suffer a loss.

Check Your Policy for These Riders

Hull Coverage: Agreed Value vs. Actual Cash Value (AV vs. ACV). Fair market is the "Agreed Value" that the Boat insurance companies and you agree on. If you suffer hull loss, your payout is the agreed value without deduction for depreciation. Actual Cash Value will factor in depreciation at the time of loss before the payout so you will receive much less.

Protection & Indemnity (P&I) vs. Watercraft Liability: Protection and indemnity is the broadest coverage. It covers your hired crew, wreckage removal, and negligence if your boat is unseaworthy, bodily injury and property damage. Coverage is from $100,000 to $1 million and even higher. Watercraft only covers bodily injury and property damage.

All Risk vs. Specified Perils: Unless it is specifically excluded on the policy, all risk coverage provides coverage for any loss. Only specific losses listed on the policy is covered with Specified Perils.

Navigation Limits: if you have a loss outside of the stated navigational limits on your policy your insurance coverage could be invalid. Figure out where you want to go and include it in your navigation limits coverage.

Deductible: Higher deductibles mean lower annual Boat insurance premiums. Consider Lower deductibles only for electronics, personal property, and tenders. Lay-Up Periods: If you're a part time sailor, include longer lay-ups. This will lower your Boat insurance premium.

Other Coverage in a Boat insurance policy may include medical payments, personal effects, uninsured boater, and towing. Credits can also be given for completion of a boating safety course and of course, having safety equipment onboard your vessel.

By: Ron Sward

Website: http://www.1st-AAA-insurance-mall.com