Boat insurance policies can be very different from one company to the next, which is not the case with home or car insurance. So, what kind of boat insurance do you need? Try out these ideas. They come from experts at BoatU.S., the largest group of boat owners in the United States.
Know Your Insurance Company-
Asking friends who have filed a claim in the past is one way to find a good insurance company. Insurance companies may be good at getting monthly payments, but it's more important to see how well they do when something goes wrong.
You can also check out www.ambest.com/ratings to learn about insurance companies. The ratings are the industry standard for figuring out how financially stable an insurer is; look for a "A" rating or better. State insurance agencies are also a good source of information, and you can find them online.
Homeowner's Policy or Separate Policy: Instead of adding your boat to your homeowner's policy, think about getting a separate policy for it. Homeowner's policies often don't cover things like salvage work, wreck removal, pollution, or damage to the environment. No matter how much the boat is insured for, there should be an equal amount of money set aside for any rescue work. This means that you get paid for the loss of your boat and don't have to pay extra money to have the wreck taken out of the waterway.
• Agreed Value vs. Actual Cash Value-
These are the two main options for boat owners, and the way they lose value is what makes them different. With a "agreed value" policy, your boat is covered at whatever price you and your insurance company agree on. Even though it usually costs more up front, there is no loss of value if the boat is lost (some partial losses may be depreciated). On the other hand, "actual cash value" policies cost less up front, but they take depreciation into account and only pay up to the boat's actual cash value at the time it is declared a total or partial loss or property is stolen.
Customize-Bass boaters who take their boats far from home may need fishing gear, tournament coverage, and "cruising extensions." If you live in a temperate state, where most of this kind of damage happens, you may want "freeze coverage." A good insurer will make sure that your coverage fits your needs, so you won't be surprised by anything.
