A boat is an important investment if you have a cottage in a body of water. If this is the case chances are you spend a lot of time on the boat.
So, it makes sense to ensure that your investment is protected. All boaters have heard stories such as “rock that came out of nowhere”, or ‘water skier tangled with the boat and lost’. To make the right choice for your budget and your boat, take these issues into account when choosing a boat insurance policy.
Here are some things to consider when taking out boat insurance
How You Use Your Boat?
Will you be pulling water tubers or skiers? Do you always tow your boat on a long journey? Does your boat travel at great speeds, or will you have regular passengers? All these things affect what you need to cover in the boat insurance policy. For example, if you take passengers or roaring around the lake with water skiers, make sure your policy has liability coverage in case of injury. If you’re going to tow the boat to the cottage, your insurance policy should protect damage to the trailer and boat in the event of an accident on the road.
Do You Want Separate Policy or Under Your Home Insurance?
Do not rely on your homeowner’s insurance to cover your boats limitations in most home policies do cover in the event of damage or injury. Also, if you moor your boat in a marina during the winter, you will most likely have to show proof of separate insurance.
Will you Need Emergency Towing?
Is the boat in big lakes, or make long journeys? A breakdown in the water can be dangerous, and inviting an emergency towing service can become an expensive proposition. In addition to carrying a can of extra fuel for trips longer than a “three-hour cruise,” an insurance policy that covers emergency towing help keep your mind at ease.
Actual Cash Value OR Agreed Value?
The difference between the actual cash and agreed value is apparent when submitting a claim for loss. If you insured the boat with agreed value, you are paid the amount in your plan, without depreciation. If insured for its cash value, you are paid the “blue book” value of the vessel and damaged parts at the time of the loss. Agreed value policies may cost a little more regarding premiums, but it is probably better compensated after a loss if your boat is larger and has many accessories.
Is Your Boat Susceptible to Rodents Attack?
Although people may consider saving money by canceling their boat insurance during the winter period, it is not advisable. Pesky rodents and raccoons love to spend the winter in the warm, protected boats, and can wreak havoc on the upholstery and rigging while there. Cockroaches and beetles also enjoy a cozy nest in a boat, and can be almost impossible to prevent them once they are established. A comprehensive insurance policy will help.
What Equipment Do You Carry On Board?
Do you have electronic equipment or downriggers on your boat? Your insurance policy should cover the cost of replacing not only the ship but all the accessories.
Your time at the cottage and on your boat is precious. Do not waste time thinking about whether you will be able to take the cost of unexpected damage to your boat, leave your insurance company to take care of that.