When applying for yacht insurance Cape Coral, it is important that you start by understanding your policy options. You need to know what you will be paid in case of loss. To do so you will need to understand the various types of boat insurance policies that are available. These are Agreed Value, Actual Cash Value and Total Replacement Cost. Your boat surveyor in Cape Coral will be happy to help you know which option is best for your type of boat. let’s take a look at what each of the three insurance policies mean.
When you have an agreed value policy, you will be paid the amount that is shown on your insurance policy in case of total loss. What this means is that with this yacht insurance Cape Coral, the insurer will agree to pay you a stated amount if your yacht is deemed to be a total loss. under this policy, damages that result from partial loss are paid for on a replacement cost basis minus deductibles. Physical depreciation of the boat will not be factored into determining the value of the damaged or lost item. All in all, items subject to higher levels of wear and tear like sails, canvas, and trailers may be subject to some allowance for depreciation. Getting a thorough valuation from a boat surveyor in Cape Coral is the key to ensuring your boat is insured for the right amount. Don’t simply rely on the report from the insurance company’s surveyor.
Actual Cash value
This policy offers less coverage than that offered by the Agreed Value policy. As a result, it is cheaper. The policy offers coverage to the current market value of your boat if there is an event of total loss. Depreciation and condition of your boat at the time of loss is considered. The insurer reduces payment for total loss depending on the physical depreciation of the damaged or lost item. Policy deductible is applied too. The Actual Cash Value policy is an economical alternative to Actual Value policy. Explore the two options with your insurer before committing.
Total Replacement Value
This is a newer type of boat insurance policy. It agrees to replace the boat with a new boat of the same make and model in the event of total loss. You will only be able to get this policy if you own a brand new boat. The policy is also valid until your boat is about two to three years.
When applying for yacht insurance Cape Coral it is always wise to discuss your options with a marine surveyor. The surveyor has more experience in boat insurance and will be able to recommend the best policy and insurer for your type of boat.