Five things you should know about boat insurance

| March 21, 2018
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#1:  Do you have the right amount of coverage on the hull? Obviously, you want to make sure you have enough insurance on the boat, but when was the last time you reviewed your policy

to be sure the coverage reflects the current value of the boat?

I've seen people over insure their boat by 50% or more! The premium on your boat insurance is directly related to the value on the boat. Over insuring the boat equals over paying for insurance! Check to be sure limit on the hull reflects the current market value of your boat.

While we're talking about hull coverage…are you covered “agreed value” or “actual cash value” on your boat? Certainly “agreed value” is much better because the company agrees in advance how much they're going to pay you in the event of a total loss on your boat. “Actual cash value” on the hull would only pay you the “book” or “depreciated value.”

#2:  Liability or “Protection and Indemnity” Coverage.  This coverage affords protection for bodily injury and property damage to others.   Make sure that you have enough coverage to comply with the requirements of your personal umbrella (assuming you have a personal umbrella).  If you don’t have an umbrella…you should get one!

In the meantime, be sure you have at least $500,000 or better yet…$1,000,000 of liability coverage. The difference between $500,000 and $1,000,000 of coverage many times will only be $25 or $50 for the year.  A great investment!

#3:  Hurricane Haul Out coverage.  This coverage will pay or reimburse for all or part of the expense you incur to take the boat out of the water in the event a hurricanes is on the way.

#4:  Check your deductible.   You're probably not going to put in a small claim on your boat insurance so why pay a higher premium on a lower deductible?  Considering increasing the deductible and you could see considerable savings! 

#5:  Are you getting all the credits you are entitled to?

Possible credits include: 

  1. Coast Guard Boating Safety course
  2. Companion policy credit
  3. Equipment credits:  GPS, RADAR, EPIRB

Bonus Point:  Many policies have a “lay-up” period during which you are not covered if your boat is in the water (often November 1st through May 1st).  Take a look at your policy to see what your "lay-up" period is!

Let us know if you have any questions or if you would like our office to review and/or quote your existing coverage.  631-744-1393 or [email protected]

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