Boat and Personal Watercraft Insurance Guide
With Boat or PWC insurance there are many different coverage options and it is important that you understand everything that is available to you. The type and amounts of coverage offered by companies can differ greatly, so make sure you have all the facts.
Actual Cash Value Insurance
With actual cash value coverage insurance, you will be paid the fair market value of your boat or PWC at the time of the claim. Current market factors such as your location and what other comparable models have sold for or been valued for recently will influence the final number. Obviously in an ACV situation the insurance company is going to try and save money, it is your job to make sure you have done your research and are getting a fair price when the insurance company makes you an offer on your loss. For many boats and PWC's, actual cash value is the perfect coverage because it offers peace of mind and protection and a very affordable price.
Agreed Value or Stated Value Insurance
With this type of insurance coverage you are covered for a definite amount in the event your craft is totaled. As long as you do not misrepresent the value of the boat, this number is usually up to you within reason. Insurance companies usually have an excellent idea of what certain boats are worth and they will know if your figure is accurate or not. Agreed value policies are usually more tendered for boats or yachts but if your PWC is worth more than other comparable skis either due to modifications or something else, be sure to talk to your insurer about this.
Just as with your auto policy, liability is an important facet to your marine coverage. Liability insurance covers you in the unfortunate event where you are at fault. Let's say you have $150,000 in liability coverage, then this means your that your insurer will cover up to that amount in damages and repairs to the other party.
If there is medical care required in the event of a boating incident, medical payments coverage on your policy will insure that you, any passengers and even people that were skiing or being towed are covered. Most policies have a per person amount. An example here would be if you had $3000 in medical payments coverage and two people were injured in your boat during an accident, then each person would be entitled to $3000 in medical payments.
Uninsured Boater Coverage
Marine insurance in most cases is usually not required so you will want to make sure you are protected from the irresponsible people who have chose not to insure their PWC or boat. Having uninsured boater coverage on your policy will make sure you are taken care of financially in the event you are involved in an accident or incident with someone who is not insured.
Fuel Spill Coverage
Because boating accidents usually take place in the water, fuel and oil spills can be a huge problem during an accident. Unfortunately fuel and oil spills can have major environmental repercussions for some time. By getting a policy with fuel spill coverage, you can rest assured that if you are ever in an accident, you won't be pegged with a gigantic environmental cleanup bill.
Other Coverage Features
Many marine insurance companies usually have many other optional or included coverage features that are specific to boats and PWC's For example, BoatUS offer up to $5000 in fishing equipment reimbursement in select policies. Many companies also offer what is called personal effects coverage which insures personal items such as clothing, cell phones or anything else that may be with you on the boat at the time of an incident.