The mistake most people make when searching for yacht insurance Cape Coral is assuming that insurance coverage is the same for all insurance companies. The important point to remember is insurers offer a wide range of coverage that is suited to their company’s level of underwriting appetite, expertise and type of client they want to attract. With these facts in mind, you have to be very picky when choosing a yacht insurance provider.
One way of ensuring you get sufficient coverage is to work with an independent marine surveyor in Cape Coral. The surveyor will help you know how much coverage you should get in yacht insurance Cape Coral and the type of policies you should aim for. Surveyors will also be happy to direct you to the best insurance providers in your area. Next, you need to understand the basics of yacht insurance. The more knowledge you have on this topic the better. Start by understanding the basics regarding what will be covered and what losses are covered. Then you need to learn about loss settlement.
Loss Settlement – Agreed value versus Actual cash value
When comparing what losses are covered following physical damages, the most significant difference found among yacht insurance policies is if the coverage is based on ‘Agreed Vale’ or ‘Actual Cash Value’ loss settlement.
The Agreed value policies pay the amount that is shown on the policy if the boat is termed a total loss. With this option, damage that results from partial loss will be paid for on a replacement cost basis; less your deductible which is the physical depreciation which shall not be factored into calculating the value of the damaged or lost items. Additionally, items subject to high levels of normal wear and tear like sails, canvas, certain machinery and trailers may be subject to the allowance for the depreciation in the event of a covered loss.
An actual cash value policy, on the other hand, offers less coverage than the Agreed value policy. It is also cheaper. It offers coverage up to the current market value of the yacht. It factors in depreciation and other factors in the event of total loss. Payments you make for partial losses will be reduced based on the physical depreciation of the damaged or lost items. Policy deductible will also be applied.
A lot goes into the purchase of yacht insurance Cape Coral. To avoid ending up on the losing side of the insurance scale, make sure you do your research. You also need to look at what other insurers are offering. Working with a marine surveyor will also help avoid making serious mistakes.