With Spring upon us and Summer right around the corner, some of you may be thinking about buying a new boat to have some fun with. Here is all of the information you need to know about insuring a boat to help you with that decision.

Boat insurance provides physical damage coverage to repair the boat if it is accidentally damaged or destroyed by a covered peril such as collision, fire, theft, vandalism, windstorm, or lightning. The coverage is broad and provides insurance for the boat, including its machinery, fittings, and auxiliary equipment, outboard motors, boat trailer, permanently attached equipment (e.g. anchors) – up to an agreed value – and personal property. It also covers damage caused to someone else’s property; medical payments, for injuries to the boat owner and other passengers; bodily injury, for injuries caused to another person; and guest passenger liability, for any legal expenses incurred by someone using the boat with the owner’s permission.

Insurers assess the size, type, & value of the boat, and the waterways in which it will be navigated when determining how much you will pay for insurance coverage.

A boat insurance policy can provide physical damage coverage on an Actual Cash Value or an Agreed Amount Value basis. Both types of boat insurance policies offer important coverage but with significant differences.

Actual Cash Value – pays for replacement costs less depreciation at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the approximate market value of the vessel. Partial losses are settled by taking the total cost of the repair less a percentage for depreciation.

Agreed Amount Value – means that you and your insurer have agreed on the value of your vessel and in the event of a total loss you will be paid that amount. Agreed Amount Value policies also replace old items for new in the event of a partial loss, without any deduction for depreciation.

According to the Insurance Information Institute, typical boat insurance policies include deductibles of $250 for property damage, $500 for theft, and $1,000 for medical payments. Higher limits may be available. Additional coverage can be purchased for trailers and other accessories. Most companies offering boat insurance have liability limits that start at $15,000 and can be increased to $300,000. Boat owners may also consider purchasing an umbrella liability policy which will provide additional protection for their boat, home, and car. Boaters should also inquire about special equipment kept on the boat, such as fishing gear or ski equipment, to make sure it is covered and verify that towing coverage is included in the policy.

Boat owners should also ask about discounts for the following items:

• Diesels powered craft, which are less hazardous than gasoline powered boats as they are less likely to explode.
• Coast Guard approved fire extinguishers.
• Ship-to-shore radios.
• Two years of claims-free experience.
• Multiple policies with the same insurer, such as an auto, homeowners, or umbrella policy.
• Completion of safety education courses.

photo credit: nautiquedotcom

Renting a car is something that most people do without considering all of the risks involved. Here’s a big one:

What happens if the rental car company charges you for damage that you didn’t cause?

A quick and easy way to avoid this risk is to take pictures of the car with your phone before leaving the lot. Take photos from all sides and even snap a few of the interior. Be doubly sure to get pictures of any scratches, dents, etc. that are already there. Chances are that you won’t ever need them, but if you get a bill a week later for a dent that you didn’t cause, you’ll be VERY happy you have them.

photo credit: samedayrepair

With the harshest part of winter coming up, our friends at CNA have provided us with some great guidelines for Best Practices for Snow Removal on commercial roofs. Follow these simple guidelines to make sure you are prepared. Download the guidelines pdf here, and be careful on that ice!

photo credit: Brian Luenser

New clients often ask us a variation of the question ”Do I have coverage immediately or does it start when I receive my paper policy?”

The answer is that your coverage starts as soon as we bind it. As an authorized “binding agent” of the insurance companies that we represent, we can provide you with new coverage quickly without waiting for the companies to process the application and issue the documents. Binding can happen that same day or at a specified date in the future (like the first of the month). So you have your new coverage immediately, and the paper policies will catch up later—usually about 6-8 weeks later.

photo credit: Joseph Tremblay