When buying a boat, the focus of most people is on the fun times ahead in summer afternoons. Most people don’t think about the boat insurance Cape Coral trusts. As a result, they are frustrated upon learning of their options. To avoid paying high premiums, you should choose the right boat. A marine surveyor can help with that. They will let you know how much coverage you can expect to get for your selected vessel. Second, you have to choose the right insurance provider and coverage.
Before choosing boat insurance Cape Coral recommends, you must discuss your needs with an experienced insurance broker. Talk to an insurance broker that specializes in marine policies. Their input will be invaluable. In addition, they will suggest additional forms of coverage you might want, such as insurance against damage caused by uninsured boat owners. Here are the two types of coverage you must ensure are included in your boat insurance policy.
Coverage against damage or loss
This is coverage for the boat itself. There are three terms you must understand under this category:
- Agreed value policy
This insures your boat to a value that is agreed between you and the insurance provider. In this case, if your boat is stolen or destroyed, the policy will pay the full insured amount. The catch, however, is this policy does not cover appreciation in value. You only get the amount agreed upon during signing. Your expensive upgrades will not be considered.
- Actual cash value
In case your boat is written off, the insurer will pay the actual cash value of your boat on the day you lost it. Payment is the value of the boat minus depreciation. The drawback is that your idea of what your vessel is worth might not align with your insurer’s.
- Replacement cost coverage
Just as the name implies, with this cover, if your vessel is ever destroyed, the insurer will pay the cost for replacing it. This is irrespective of whether the value of the boat has gone down or up. For this reason, replacement cost coverage is considered the best cover you can buy. The policy is also ideal when you want repairs to be done.
Coverage against liability
This cover protects you against the cost of damage you and your boat cause to the property of other people. It also covers the cost associated with personal injuries. Your insurer will pay with damage liability if your boat damages another boat or damages the dock. Personal injury liability coverage protects you from being sued. In addition, you will not pay out of pocket if someone is injured during an accident.