Boating insurance has a few distinct differences between homeowner’s insurance coverage and an auto policy. It’s these differences that make buying boat insurance so instrumental in providing adequate liability and property coverage for boaters both on and off the water.
Agreed Upon Value Coverage
Homeowners’ insurance policies treat large items, like boats, as personal property. This means those boats and other expensive “toys” you might own have very little actual protection, if any at all through your homeowner’s policy.
If you want to protect the value of the boat, the investment you’ve made into the boat, you’ll need to purchase boating insurance that is dedicated to the boat. Further, if you’re seeking to protect your investment you need to work with the insurance company on an “Agreed Upon” value for your boat. This is the value that the insurance company will pay if your boat is a total loss. This is important because boats, like cars, depreciate greatly in value within the first few years of ownership and make value replacement takes depreciation into account when calculating settlements.
Most people only use their boats during certain months of the year. The boats are either in storage or put up for the winter months until the weather is warm and the waves start calling. Insurance companies understand this and offer something that is unique to boaters (and unavailable to home and car owners). Most insurance companies will allow you to enjoy discounted insurance premiums during the months your boat is not in use. The amount will vary by company, but is something that is fairly unique to boats.
Opportunities to Save Money
In addition to layup coverage during off-season months, there are other things boaters can do to save money on their boating insurance. These specific discounts are not available for home and auto policies.
- Boating Safety Class Discounts
- Safety Feature Discounts
- Automated Fire Suppression System Discount
- Diesel Engine Discount
- New Boat Discounts (many companies offer discounts to boats that are five or fewer years old).
There are many things that affect overall insurance rates for boaters. These things include your home port location, distances traveled, types of water traveled in, locations traveled, other insurance coverages from the same provider, and driving history (since boats are typically transported over the road).
Take the time to understand what your boating insurance coverage options are and make sure you have the kind of coverage that allows you to sail with confidence, wherever the winds may take you.
To obtain a free boat insurance quote, contact us here at BOLT Insurance Agency today by completing our online form or give us a call at 1-800-902-5887.