We have talked a lot in our recent Facebook posts about boat insurance. Why you need it and where to get it. Well we want you to know that Farquhar and Black has all types of watercraft insurance. So if you are coming in for home, auto, and maybe even commercial insurance why aren’t you coming to us for your boat?
Maybe you are a new boat owner and don’t know where to begin. Let’s start out with the basic information you need to ensure that your watercraft no matter how big or small is properly covered.
Insurance Factors
Any boat no matter the size can be insured. You want to consider the following to make sure the policy you purchase meets your needs:
- Age of Boat
- Length
- Value
- Speed/Horsepower
- Condition
- Primary residence (Are you living on your boat)
- Type of boat
- Homemade
- Houseboats with no motor
- Ownership (more than 2 owners)
- Where it will operate (Ocean, lakes, rivers)
Types of Boat Insurance
Discoverboating.com has explained the two different types of boat insurance that you can purchase. “Agreed value and actual cash value. How depreciation is handled is what sets them apart. An “agreed value” policy covers the boat based on its value when the policy was written. While it can cost more up front, there is no depreciation for a total loss of the boat (some partial losses may be depreciated). “Actual cash value” policies cost less up front, but factor in depreciation. In other words, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss. Eventually, as your boat ages, you the insurer will likely insist on an actual cash value policy—and if often gives a substantial savings.”
Kinds of Policies
You would be surprised to know that any boat no matter the size can be insured. The different types policies include –
Boat- PWC – example of this is a jet ski
- Yacht – yachts are 27′ and larger – these policies tend to be larger
- Sailboat
- Dinghy
- Boat & PWC Rental – Although this is generally not required, rental insurance will help cover any damage the vessel, as well as the operator and passengers.
- Boat Clubs – covers all members of club while operating a boat.
- Professional (ProAngler, Fishing Guides & Charters) – These policies are very customizable and can cover items like travel to a tournament, equipment and more.
BoatTypes of coverage
Again discoverboating.com laid out all the different types of coverage you can add on to your basic policy. This will depend on the type of policy, but common coverage add-ons include:
- Specialized Coverage – Coverage for something specific on your boat like an expensive prop or navigation equipment.
- Salvage – Coverage that pays to remove your boat due to damage, from substantial to minor.
- Consequential Damage – Covers a loss that was the result wear and tear rather than an accident (rot, mold, corrosion).
- Towing – Towing your boat across a body of water to safety can cost $400 per hour.
- Cruising Extension – You can get temporary, additional coverage if you plan on leaving the USA (typically to Mexico or the Bahamas).
Cost factors in your policy
Every policy will vary in price from boat to boat. But there are some simple factors that will change your premium price-
- Where are you boating?
- How much safety training have you had?
- Good driving record – YES! On the road and on the water!
- Deductible – just like with your home or auto policy – the high the deductible the lower the premium
Shopping for Insurance
There is no need to shop around for insurance for your watercraft. At Farquhar and Black we are your one stop shop. You are already coming to us for all your insurance needs why not your boat? Contact any of our account managers today before the boating season begins!