Boat owners, there are standard marine insurance coverages you can expect to need for your watercraft. These include:
Option One: Agreed Value. In the event of a total loss, this coverage pays the agreed value shown on the declarations page of your policy, regardless of the craft’s actual cash value at the time of loss (less any applicable deductible).
Option Two: Actual Cash Value. In the event of a total loss, this coverage pays the lesser of the actual cash value at the time of loss less the policy deductible or the market value you provided for the watercraft. Actual cash value is determined by the market value, age, and condition of the watercraft at the time of loss.
A few insurance companies offer Total Loss Replacement on smaller boats; inquire for additional information.
This policy covers bodily injury, lost wages, sickness, or death that result from an accident. Liability insurance also covers legal fees and pain and suffering that may result from an accident if you are found legally liable. If you are liable for property damage, the coverage pays for damages to other watercraft, property and structures.
Generally, this is included in the liability section of the policy coverage. It generally pays the expenses necessary to contain and clean pollution. It is important to note that fines and penalties incurred from said pollution are excluded.
What if the owner or operator of a watercraft does not have insurance to cover bodily injury damages? Uninsured boater coverage protects you, your relatives, and other occupants of an insured watercraft if any sustain bodily injury caused by an uninsured boater.
Medical Payments Coverage
This covers certain medical and funeral expenses resulting from a watercraft accident and protects anyone occupying (or water-skiing off of) your watercraft. These benefits are payable without regard to fault.
If the insured boat runs out of fuel or has a dead battery, this coverage provides reimbursement up to the policy limit.
Pay particular notice to navigation limits as defined by your policy. Traveling outside these limits will void policy coverage.
Always refer to your policy contract for specific definitions, terms, policy conditions and exclusions.
For more information, contact the marine insurance advisors at W3 Marine.