Some things to consider when protecting your boat....
09-04-2015, 09:23 AM
#1
HP Marine Ins. Specialist
Thread Starter
Join Date: Mar 2008
Location: Insuring any kind of boat
Posts: 985
Likes: 0
Received 0 Likes
on
0 Posts
Some things to consider when protecting your boat....
This was written by another source but I wanted to share it here as I found it to be relevant info and while the information seems obvious, sometimes we need to be reminded of the obvious so we don't forget. 
Out of the Water
boat in storage Most boats are used on a seasonal basis and spend extended amounts of time on dry land. Some boaters make the mistake of dropping coverage during the off season when in fact their boats are still vulnerable to weather, fire, and other perils. Depending on the size of your boat, some insurance companies require "lay up" periods. A lay-up period is usually for boats exceeding 26 feet and defines the months that the vessel is out of active service. During the lay-up period the vessel is out of commission and is not used for any boating activities. It's important to know that if you put your boat in the water during the lay-up period, there would be no coverage for an “in the water “ loss during this time. In New England, the typical lay-up period is from October to May. Credits are available for longer lay-up periods. It's also easy to forget the critical need to have adequate coverage on boat trailers and boat lifts.
On the House?
BOTTOM LINE: NEVER, UNDER AND CIRCUMSTANCE PUT YOUR BOAT INSRUANCE ON YOUR HOMEOWNERS POLICY... HORRIBLE IDEA!
The best way to insure a boat is by having a stand-alone boat policy—not an endorsement to a homeowner's policy. A homeowner’s insurance policy will usually limit the size and horsepower of the boat along with lower available hull limits and have little or no coverage for personal effects on board.
If you choose to add a boat to your existing homeowner's coverage, make sure there is sufficient liability coverage if the boat is moored in a marina or if you participate in organized fishing tournaments. In virtually all cases, however, boaters are better off with a separate boat policy from a specialty insurer.
Additional Factors to Consider
In addition to the type of boat, there are several other factors that need to be considered before writing a boat policy. For example, who is going to be driving the craft? Similar to auto insurance, experienced boat operators and those who are claim-free may qualify for discounts. Insurance company will want to know who will be operating the boat, as well as the driving and boating history on the operators.
Boats depreciate as fast as cars do, if not faster. For newer boats (three years or newer), your customer may opt for replacement cost coverage. As an example, if the boat is worth $20,000, the insurer will pay your customer that amount if the boat suffers a covered, total loss. For slightly older boats (up to 10 years), agreed value coverage may be a good choice. This simply means you and the insurance carrier agree on the value of the boat, and the insurer will pay that amount in the event of a covered, total loss.
A vessel that is more than 10 years old is typically valued at actual cash value, which is the market value of the boat at the time of loss—not to exceed the insured value listed on the declaration page. There is an alternative you need to know about: extended agreed value coverage. The owner of a boat that is more than 10 years old may be able to get an agreed value endorsement from some insurers.
Another coverage that is often overlooked is the extended parts replacement coverage. This coverage typically waives depreciation charges on repairs on vessels that are less than 10 years old. This coverage will help minimize your out of pocket expenses if a claim is filed.
Also, consider boat trailer coverage. Trailers are common targets for thieves, are almost impossible to recover, and are very often underinsured. Custom-built trailers with tandem or triple axles, custom wheels, and custom paint can easily cost as much as $5,000-$10,000. On many policies, trailers are listed separately, with a separate coverage amount. If this amount isn’t enough to replace the trailer, the boat owner isn’t adequately covered.
Finally, there is the matter of navigation, or where the boat is going to be used. If you plan on being in coastal waters, there will be limits on how far away from the coast your boat can travel. If you’re planning to cruise over to the Bahamas, make sure the policy allows for the extended navigation into those waters.
Since boating mishaps don’t just happen at sea, it’s important to make sure that you’re covered both in and out of the water
Out of the Water
boat in storage Most boats are used on a seasonal basis and spend extended amounts of time on dry land. Some boaters make the mistake of dropping coverage during the off season when in fact their boats are still vulnerable to weather, fire, and other perils. Depending on the size of your boat, some insurance companies require "lay up" periods. A lay-up period is usually for boats exceeding 26 feet and defines the months that the vessel is out of active service. During the lay-up period the vessel is out of commission and is not used for any boating activities. It's important to know that if you put your boat in the water during the lay-up period, there would be no coverage for an “in the water “ loss during this time. In New England, the typical lay-up period is from October to May. Credits are available for longer lay-up periods. It's also easy to forget the critical need to have adequate coverage on boat trailers and boat lifts.
On the House?
BOTTOM LINE: NEVER, UNDER AND CIRCUMSTANCE PUT YOUR BOAT INSRUANCE ON YOUR HOMEOWNERS POLICY... HORRIBLE IDEA!
The best way to insure a boat is by having a stand-alone boat policy—not an endorsement to a homeowner's policy. A homeowner’s insurance policy will usually limit the size and horsepower of the boat along with lower available hull limits and have little or no coverage for personal effects on board.
If you choose to add a boat to your existing homeowner's coverage, make sure there is sufficient liability coverage if the boat is moored in a marina or if you participate in organized fishing tournaments. In virtually all cases, however, boaters are better off with a separate boat policy from a specialty insurer.
Additional Factors to Consider
In addition to the type of boat, there are several other factors that need to be considered before writing a boat policy. For example, who is going to be driving the craft? Similar to auto insurance, experienced boat operators and those who are claim-free may qualify for discounts. Insurance company will want to know who will be operating the boat, as well as the driving and boating history on the operators.
Boats depreciate as fast as cars do, if not faster. For newer boats (three years or newer), your customer may opt for replacement cost coverage. As an example, if the boat is worth $20,000, the insurer will pay your customer that amount if the boat suffers a covered, total loss. For slightly older boats (up to 10 years), agreed value coverage may be a good choice. This simply means you and the insurance carrier agree on the value of the boat, and the insurer will pay that amount in the event of a covered, total loss.
A vessel that is more than 10 years old is typically valued at actual cash value, which is the market value of the boat at the time of loss—not to exceed the insured value listed on the declaration page. There is an alternative you need to know about: extended agreed value coverage. The owner of a boat that is more than 10 years old may be able to get an agreed value endorsement from some insurers.
Another coverage that is often overlooked is the extended parts replacement coverage. This coverage typically waives depreciation charges on repairs on vessels that are less than 10 years old. This coverage will help minimize your out of pocket expenses if a claim is filed.
Also, consider boat trailer coverage. Trailers are common targets for thieves, are almost impossible to recover, and are very often underinsured. Custom-built trailers with tandem or triple axles, custom wheels, and custom paint can easily cost as much as $5,000-$10,000. On many policies, trailers are listed separately, with a separate coverage amount. If this amount isn’t enough to replace the trailer, the boat owner isn’t adequately covered.
Finally, there is the matter of navigation, or where the boat is going to be used. If you plan on being in coastal waters, there will be limits on how far away from the coast your boat can travel. If you’re planning to cruise over to the Bahamas, make sure the policy allows for the extended navigation into those waters.
Since boating mishaps don’t just happen at sea, it’s important to make sure that you’re covered both in and out of the water
