The fine print in boat insurance

April 28, 2016 Facebook Twitter LinkedIn Google+ Fishing and boating tips,Uncategorized

Check the fine print in your insurance policy. Make sure it covers these 6 things. Boatus suggests that you check your policy closely, Not all are the same.

  • Consequential Damage: If a boat part fails like an outdrive bellows due to wear and tear or lack of maintenance, your insurance will not pay. The problem is that if your boat sinks, the insurance may not pay because it is damage consequential to a non-covered event. You need consequential coverage that pays for damage that occurs when a part fails. . One caveat: this consequential damage coverage often applies only to specific types of losses. For example, the immediate consequential damage resulting from any fire, explosion, sinking, demasting, collision or stranding.
  • Fuel spill liability: Fuel spill liability coverage covers you for the results of an accidental fuel spill, including cleanup, or 3rd party damage. This could happen due to grounding, sinking, collision or fire.Some policies limit this coverage to the policy limits, but a better choice is separate coverage for fuel spill up to the maximum you can be liable for under the law, which is currently $939,800
  • On the Water towing: Many policies provide this coverage for routine breakdowns and soft groundings. Understand the coverage. Who provides it and do they have 24 hour service ? Wull you have to pay first and collect from insurance afterward? Sometimes a separate towing membership is preferable.
  • Salvage coverage: When there is a fire , sinking , grounding on a shoal or other total loss situation, you may have a salvage situation. If the boat needs to be recovered and transported to a repair facilty, it can get expensive. Some insurers deduct the cost of salvage from the total insured value of the boat. This reduces the final payout in a total loss or less money available for repair. You should have salvage coverage equal to and separate from the value of the boat.
  • Boat trailer:  You should make sure you have trailer coverage and if there are geographic limits to it. You need trailer coverage to repair the trailer, but aut insurance covers the damage that it causes.
  • Liability only policy: If you opt for a liability only policy make sure that it provides not only coverage for property damage and bodily injury to others, but that it also provides coverage for salvage and removal of wreck, and that a separate coverage is available for fuel spill incidents.

Wicked Tuna