It is highly recommended that vessel owners insure their boats against sudden incidents. Boats are very expensive to buy, maintain and repair. Thus, it is important to get insurance as soon as possible to ease the risk of losing your cherished vessel.
Watercraft insurance is the term used to describe three types of insurance that owners can explore for their vessel needs; boat insurance, yacht insurance and personal watercraft insurance. A policyholder receives protection from certain rare but potentially costly risks. The following are usually included in boat insurance policies.
Boat, Wreck and Debris removal cost
This covers any wreck to the boat that results in loss or damage of the vessel or parts of it. The debris or wreck must occur as a result of an incident that has been previously agreed to by both parties.
Towing costs
If a boat gets damaged while on water, this insurance covers the movement of the vessel from the point of damage to the nearest repairer.
Return Home Costs
This insurance is available for a boat damaged 100km from the owner’s home or when a home repairer is unable to repair the vessel and there is a need to transport the vessel to a repairer farther from the area.
Hull Inspection after Stranding
Boats can sometimes get stranded due to several reasons. If a boat gets stranded, insurance can cover the cost of inspecting the hull to check for damage.
Emergency Repair Costs
If a boat is submerged and then recovered, the submerged boat will need to be dismantled to check the oil and dry all of the electrical equipment and instruments. Insurance can also cover this.
Where is the Boat Covered?
It is important to peruse your insurance policy properly to find out which areas are covered by your insurance.
Accidental Damage Cover
Here, the boat is insured against accidental losses or damage. The boat is however only covered under some specific conditions; they include the following.
- Fire Accidents or Explosions
Here, the insurance covers loss or damage as a result of fire or an explosion. However, insurance is not valid if the fire or explosion occurs lesser than 48 hours after taking the insurance. Unless the insurance was taken immediately after former insurance expired or immediately after buying the boat.
- Storm
The insurance also covers loss or damage as a result of a storm. Just like with fire and explosion, insurance is not valid if the storm occurs lesser than 48 hours after the insurance is taken. Unless the insurance was taken immediately after former insurance expired or immediately after buying the boat.
- Theft
Another area covered by insurance is lost or damaged due to theft or attempted theft. Here, the insurance covers the boat, its parts, accessories, tools and contents.
Additional Covers
Other insurance covers also available include the following
- Personal accident cover
This insurance covers against body injuries directly caused by the use of the boat to the owner of the boat or other people on board during the period of insurance, if the injury occurs within 6 months of having an accident in the boat. This insurance covers for death, temporary total disablement or permanent total disablement.
- Liability cover
Liability cover will serve to protect from all legal costs incurred in defending the policyholder when legal claims are made resulting from the use of the boat.
It is important to know whether or not your insurance policy pays the actual cash value or the agreed value. Actual cash value is cheaper as it only reimburses based on the actual value of the boat at the time of loss. Thus, it factors in depreciation and wears and tears. Agreed value, on the other hand, is the price agreed upon between both parties when the policy was obtained.
Insurance is generally complex and so it is important to get a broker who can assist in picking the policies which can cover your scenarios and is also affordable.