Protecting Your Pride and Joy- Boat Insurance
When you've invested money in the ultimate sailing experience, you're going to want to insure your boat for the standard things that even home and car owners, do. But is boat insurance really like other kinds?
The answer to that, is yes and no. The two primary facets of boat insurance, are liability, or protection and indemnity; and property loss. In some ways they are handled the same as automobile or home policies.
For example, when you insure your boat for liability, it protects you against loss of life, injuries, damage to another person's property cause by your boat, and it can also provide for your legal defense, should you be sued for something that is covered under your boat insurance. In that respect, it is much like auto insurance.
On the other hand, there are some subtle variations when it comes to loss and damage insurance. The typical coverage for loss, is either "actual cash value" (ACV), or "agreed upon" value.
Boat insurance that is "agreed upon" for value, has a cash figure written in the policy, which is the amount paid for total loss. Partial damages are repaired at "for new" prices, in other words, there is no depreciation factored in, except for high wear items like sails, and some machinery. This is the more expensive choice to insure your boat.
An actual cash value policy, means that if your boat is a total loss, you will receive the current market value, minus the deductible, and appropriate depreciation for the age and condition of the boat at time of loss. Partial losses also take depreciation into consideration. This type of boat insurance is cheaper, and may be the option for you.
The key to getting the exact coverage you want, is in getting all the information you can, prior to signing any boat insurance agreement. Ask questions, and read the fine print before making your final decision.