Boat ownership can be a great source of pride and enjoyment, but it also comes with a certain level of responsibility. One of the most important aspects of owning a boat is having proper insurance coverage to protect yourself and your investment in the event of an accident or other unforeseen circumstances. However, more than simply having insurance is needed; it is important to regularly review and update your coverage to ensure it is up-to-date and meets your current needs. This article will discuss three things to check to ensure your boat insurance is up-to-date.
- Coverage Limits and Deductible
When reviewing your boat insurance policy, the first thing to check is your coverage limits and deductibles. Coverage limits refer to the maximum amount your insurance company will pay for each type of coverage in case of a claim. Deductibles are the amount you must pay out-of-pocket before your insurance coverage kicks in.
Reviewing your coverage limits and deductibles regularly is important to ensure they are appropriate for your current situation. If you have upgraded your boat or increased the value of your equipment or accessories, you may need to increase your coverage limits to ensure you are adequately protected. On the other hand, if you have sold equipment or accessories or made other changes that have decreased the value of your boat, you can lower your coverage limits to save money on your premiums.
Similarly, your deductibles should be reviewed regularly to ensure they are still appropriate for your needs. A higher deductible can help lower your insurance premiums, but it also means you will need to pay more out-of-pocket in case of a claim. If you are comfortable with a higher deductible and have enough savings to cover the cost in the event of an accident, it may be a good way to save money on your premiums.
- Liability Coverage
Another important aspect of boat insurance is liability coverage. Liability coverage is designed to protect you if you are found responsible for causing damage to another person’s property or injuring someone while operating your boat. Liability coverage is typically mandatory in most states, but the minimum requirements may not be enough to protect you in the event of a serious accident fully.
When reviewing your boat insurance policy, check your liability coverage limits to ensure they are adequate for your needs. Suppose you frequently host large groups of people on your boat or participate in high-risk activities such as water skiing or wakeboarding. In that case, consider increasing your liability coverage limits to ensure you are fully protected in the event of an accident.
- Specialized Coverage
Finally, reviewing your boat insurance policy to ensure it includes any specialized coverage you may need is important. Depending on your boating activities and where you use your boat, you may need additional coverage such as:
a. Agreed value coverage: This type of coverage ensures that you receive the full value of your boat if it is damaged or stolen rather than just its depreciated value.
b. Salvage and wreck removal coverage: Remove your boat from the water if it sinks or is damaged beyond repair.
c. Towing and assistance coverage: This coverage pays for towing your boat back to shore if it becomes disabled on the water.
Before purchasing boat insurance, discussing your needs with an experienced insurance agent is important to ensure you have the appropriate coverage for your situation. A professional agent can help you identify any potential gaps in coverage and recommend additional coverage options that may be beneficial.
Boat insurance is an important aspect of boat ownership that should be noticed. Regularly reviewing and updating your coverage can ensure you are adequately protected in an accident or other unforeseen circumstances.