| Boat insurance is mandatory on almost all states | | | | vehicle: stated or agreed value and actual cash |
| and countries. However, having boat insurance is | | | | value. Stated or agreed value is the value that the |
| not enough. The issue of whether the coverage | | | | insurer and insured establish in the insurance |
| of your boat insurance is suitable for the use you | | | | contract prior to signing. Both parties agree which |
| will give to your boat is just as important. | | | | is the value insured and in the event of a claim |
| Therefore, you need to understand the different | | | | the whole or a portion of that value is covered |
| concepts that apply to this kind of insurances in | | | | according to the type of damage or liability. |
| order to select the insurance policy that best suits | | | | The Actual Cash Value on the other hand, is not a |
| your needs. | | | | fixed value and relates to the market price of the |
| Following you will find some basic guidelines that | | | | boat at the time of the accident or claim. Though |
| will help you understand the different clauses on | | | | these policies tend to be a lot cheaper, there |
| boat insurance policies so you can decide which | | | | might be discussions at the time of claims and |
| one best adjusts to your requirements. There | | | | thus, an agreed value is advisable because the |
| may be some coverage that you can do without | | | | amount is already fixed in the contract and there |
| and other type of coverage that you would | | | | will not be any discussions about that issue. |
| prefer to have that is not included. Once you | | | | Liability Coverage |
| know this, you can request your insurance | | | | Liability Coverage is a very important part of a |
| company or broker to design a boat insurance | | | | boat insurance policy. This covers the insured for |
| product customized for your particular necessities. | | | | any damages caused to third parties whether on |
| Common Deterioration Excluded | | | | board of the boat or not. Therefore if you will |
| Regular wearing out of boat parts is not covered | | | | invite friends or acquaintances as passengers or |
| by boat insurance and therefore you should not | | | | use the boat in areas where other people can be |
| expect to be able to claim for damages caused | | | | damaged by the regular use of the boat, it is |
| by such reasons. Thus, it is advisable to do proper | | | | advisable to pay special attention to this type of |
| maintenance to your water vehicle to ensure that | | | | coverage. |
| no claim is rejected due to lack of coverage of | | | | Combined Policy |
| common deterioration. This is an important fact | | | | The most common boat insurance policies provide |
| and it works just like car insurance with the sole | | | | a combination of property coverage and liability |
| difference that due to the constant contact with | | | | coverage. Therefore it does not matter whether |
| water, boats tend to deteriorate a lot faster. | | | | the property is damaged by an accident or |
| Values Insured | | | | someone is injured. Even if both things occur, the |
| There are different clauses on boat insurance that | | | | insurance will cover for all the costs provided they |
| relate to the value of the boat. There are mainly | | | | do not exceed the insurance amount limit. |
| two systems to calculate the value of the water | | | | |