When it comes to purchasing a boat insurance policy, there are certain restrictions that must be taken into account. The size, type, and value of the boat, as well as where the owner plans to sail or motorize it, are all factors that will determine the appropriate coverage, financial limits, and premium. Small motor boats with less than 25 miles per hour of power can often be covered by the owner's homeowners or renters insurance policy. However, larger and faster ships require a separate boat insurance policy.
Boat insurance generally covers damage and loss caused by common hazards such as sinking, fire, storms, theft, and collisions. It also only pays for losses and injuries that occur within designated geographical limits. With the full replacement cost included in the policy, your insurer can buy you a new boat of the same make and model to replace the damaged boat in the event of a covered loss. When searching for a boat insurance policy, there are several companies that offer different packages tailored to the type of boat, age or level of coverage. Foremost provides more than five insurance packages while BoatUS allows you to extend your coverage to Alaska, Bahamas, Mexico and the Caribbean.
Homeowners insurance can also cover your boat as long as it meets the insurer's size and speed restrictions. In case of an unexpected event, it is essential to contact your insurance company as soon as possible. If you violate any of the guarantees of the policy such as not exceeding boating limits or using your boat for anything other than private pleasure use without this coverage and suffer a loss, you will not be paid for that loss. It is also important to perform regular maintenance on your boat to keep it in good working order. Many insurers offer discounts to boaters who have completed an approved boating safety course. The company owned by Geico offers agreed-value policies, real cash value and liability coverage for most types of boats.
However, it does not offer replacement cost coverage like many other insurers. Amortization formulas vary by company but generally, the older a boat is, the less the insurer will reimburse for the loss of value compared to when it was new. To ensure that you are adequately protected in case of an accident or other unforeseen event, it is important to understand what maintenance is required for your boat insurance policy. Make sure you read through all of the terms and conditions before signing up for a policy so that you know exactly what is covered and what is not. Additionally, take advantage of any discounts offered by your insurer for completing an approved boating safety course.