Insure My Boat

Does the Mooring Have an Impact on the Insurance Rate?

Location and type of mooring can have a significant impact on the risks a motor-driven or sailing yacht faces.

Boat Mooring Rope

Plus, the moorings can have an influence on the insurance rates quoted by underwriters. Most insurance policies provide coverage while the watercraft is afloat in use and laid-up on moorings, including launching and hauling.

Different moorings can make a noticeable difference in the price, terms, conditions, and limitations imposed by the insurance company.

Here are four of the common mooring options for vessels:

Marina berth

A safe and reliable mooring is in the marina berth, but this is the most in demand option up and down the country; therefore expect higher costs and longer waiting lists. Plus, having a boat moored in a marina berth 12 months of the year gives more freedom in use. Other types of moorings can limit the usable time in the water.

Also, other benefits might apply for the insurance policy, such as no loss of no claims bonus should an accident of loss take place while the vessel is moored up in the home marine berth.

Dry sailing

Dry sailing is a practical choice for many types of dinghies and similar small sized vessels. Storing the boat on dry land is certain to protect against the difficult conditions on the water, but there are greater risks of theft and/or vandalism. For this reason it is essential to put in place the proper security measures to ensure the craft is safe throughout this time. Certain types of crafts, such as 12-18-ft speed boats or similar will need to be locked in secure premises when not in use — but the specific requirements will be noted on the insurance schedule.

Swinging mooring

The exact location of this type of mooring is certain to have an impact on whether or not it is acceptable to leave the vessel in the water year-round. Certain regions will have restrictions in place to lift ashore or moor elsewhere for the most difficult months. A swinging mooring should be laid to a professional standard, properly maintained, and regularly inspected. Plus, the company involved in inspecting the mooring should have enough professional indemnity coverage in place. The use of a chain or rope strop will vary with the location and exposure of the mooring.

Laid up

A lay-up period is often stipulated in the policy schedule for those vessels moored in the more exposed waters. This is intended to protect the vessel from the worst of the winter condition. Alternatively, a vessel can be moved to a more secure mooring (afloat) throughout the winter, such as a protected marina or boatyard.

Mooring Covers

Give a vessel laid-up on moorings extra protection by using purpose-made mooring covers. A high-quality cover for the docked boat is certain to provide reliable protection against constant sun, rain, or wind exposure. A preferred type of material is cotton or cotton poly blend which has the ability to keep moisture out because of its breathable properties. Plus, storage and trailable covers are also available to match the specific needs.

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How Is The Claim Handled When The Boat Is “Written Off” By The Insurance Company?

If it is deemed by an insurance company that a vessel is in such a state that it should be written off, the amount payable in the event of making a claim is likely to be dependent on the type of policy you purchased. An insurance company is likely to pay out on an actual cash value or agreed value policy.

Bavaria Sport

In the process of implementing the insurance coverage, you are arranging for the ideal level of coverage to protect against a wide range of listed perils. If you take out a full coverage (also known as all-risks or comprehensive) policy, this will pay out in a wide range of situations, unless of course a restriction is written into the policy terms and conditions.

Loss cover provided in the event of physical damage

The types of losses for physical damage might well involve incidents relating to a collision with a floating object, a dock, or another boat. Acts of theft and vandalism are incorporated into a regular policy, as would damage to the vessel in the event of lightning, wind, and hail or wave action.

In the initial stages of arranging the insurance you really want to make certain that the right level of coverage is implemented to give the type of protection most required. You might require an all-risks policy that is able to provide protection while the boat is laid-up ashore in store, or when being tailored on the highway. A boat owner is required to take on the basic maintenance responsibilities; general wear and tear isn’t likely to be included under a standard marine insurance plan.

Comparison shop the marine insurance market

Prior to choosing which one of the specialized marine insurance companies to use for insuring your motor-driven yacht, PWC, or sailboat, you should really put in the effort to get multiple quotes from the different insurance providers. Since you’ll likely find that the pricing for the insurance protection can vary between the different insurance companies, it is beneficial to shop around in order to attract the most competitive deals.

One area that needs great thought and consideration would be the agreed amount paid out by the insurance company in the event of a total loss.

Agreed value insurance policies

If you take out an agreed value insurance policy, you would be able to claim the total sum insured for the hull and equipment that is listed on your insurance schedule in the event of a total loss. In situations of a partial loss, a claim will be determined by the extent of damage and settled on the replacement value of the damaged part or sustained damage.

An insurance company would cover the expense of purchasing a replacement part that was similar in relation to make and model to the item that was damaged beyond repair. Price depreciation as a consequence of age and wear isn’t factored into the claim pay outs for the agreed value policies — although you still might need to pay the deductible amount stated on the insurance policy.

The agreed value insurance aspect of the insurance is most likely to reflect the value of the hull and machinery, since you will likely find that items of equipment like in the outboard motor, trailer, canvas covers, and sails include a depreciation clause due to wear, tear, and age.

Many of the insurance policies vary in relation to the compensation offered in the event of a total loss, for this reason you should make certain to ask the insurance agent when
obtaining an insurance quotation.

Actual cash insurance policies

If you enact an insurance policy that states the actual cash value of the vessel will be paid in the event of a claim, you will receive a compensation amount that is in line with the market value of the vessel at the time of the incident. In calculating the amount to pay out, the insurance company will take into consideration depreciation due to age and condition when any payout figures are being established.

Beyond the amount deducted for depreciation, the insurance company will also deduct the policy deductible from any potential claim payout.
In the event of a partial loss to the vessel or equipment, the insurance company is likely to request full details of the loss or damage incurred in order that the insurance adjuster is able to calculate a fair settlement based on the value of equipment in the condition at the time of the incident.

An actual cash value insurance policy is in the more cost effective option, but it is important to be mindful that you’re paying a premium on an insurance plan that is gradually depreciating in relation to the insured value. Since the market value of the vessel is likely to gradually depreciate year-on-year, you will continue to play in same level of insurance premium, while the insured value that is payable in the event of the total loss continues to decline.

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What Affects Boat Insurance Rates

Basically, the average cost of marine insurance in the United States is in the region of $325-$500 annually — although premiums can reach in excess of $1000 for the more high-performance and high value vessels. In order that an underwriter is able to quote an annual premium, a range of factors are taken into consideration.

Flisvos Marina

If you’re in the planning stages of purchasing a vessel, you should look at obtaining quotations from several different insurance companies in order to establish a ball point mark for the annual cost. If you are able to do this at an early stage it will help with planning the overall budget and you will be more mindful of the type of vessel that you are able to insure.

In many of the US states there aren’t any specific laws which govern the requirement of boat insurance. Yet, it is still highly beneficial for anyone that is likely to own a boat to have a basic appreciation of how it works, and implement the right coverage for your own peace of mind. If you are able to use a motor-driven vessel on a body of water that doesn’t require insurance coverage in place this is often quite a risky move; because if you are found to be at fault in an accident, you are likely to be held responsible for the resulting damages. Elsewhere, if a passenger on board is injured for a variety of reasons, you might well be held responsible and have to cover the related expenses for medical treatment.

What factors influences the boat insurance rates

A wide range of factors come into play when it concerns calculating the annual insurance premium for a luxurious yacht to fish-ready flats boats. In many cases the national average indicated for insurance premiums at $300-$500 per 12-months is likely to be the situation when able to add the vessel to an existing insurance plan, such as the one relating to the house or automobile. In situations where it is likely to be more beneficial to insure on an entirely separate insurance plan; there might be a significant increase in the annual cost — although you will get more wide-ranging coverage in the process.

If you are hoping to include a vessel on an existing insurance plan, you might want to be aware of some of the more standard limitations:

  • The length of the craft is limited to 26 feet
  • Items such as personal effects are likely to be excluded from the coverage
  • Includes protection for issues that might occur on the various bodies of water, such as those relating to a gas spillage

When you are searching the viability of the most cost-effective insurance package for a vessel, then the option of including on a pre-existing policy might well be the best course of action. If you are requiring a more all risks package, you’ll need to search for a specialized marine insurance company that is able to offer the wide-ranging risks that are needed to make sure a vessel is protected at all times, whether onshore or out at sea.

All risks policy or named peril policy

A further influencing factor in the insurance coverage is likely to relate to the type of policy chosen, which might well relate to the all risk policies or the named peril policies. An insurance policy that includes the extra named peril protection is designed to provide that extra level of coverage for the named incidences, such as a full-scale hurricane that has received a given the name. If you are able to limit the insurable features and benefits, this is likely to make sure an insurance policy is kept at a more cost-effective rate.

What is included in a typical boat insurance plan?

A full coverage (also referred to as all risks and comprehensive) insurance plan is able to incorporate wide-ranging coverage, which pretty much includes everything imaginable. All policies will include certain limitations, exclusions and restrictions, but these are likely to be specific to the individual insurance companies. For example excluding coverage for lightning strikes is likely to be a very common exclusion. Basically, an all-risks insurance plan will incorporate such protection as:

  1. Total loss of the boat
  2. Damage to the hull
  3. Loss or damage to the equipment
  4. Personal injuries

A full coverage insurance policy is quoted at a higher annual premium then the alternative of the liability only coverage and the policies that are written to provide protection in the event of a named peril.

Agreed value or actual cash value policies

In the process of arranging the insurance coverage, you also want to look at the main types of policies offered which relates to the agreed value and actual cash value policies. An actual cash value policy is the more cost-effective of the two options since the pay out in the event of a claim is based on the current market value of the vessel at the time of experiencing the loss. Whereas, the agreed value policy is where the total sum insured of the vessel and equipment is established at the time of taking out insurance policy, and this would be the value that would be claimable in the event of a total loss.

How does the speed of the vessel impact the insurance rates?

A further key area where the insurance rates are impacted relates to the speed and performance capabilities of a vessel. Many insurance companies have a limit on the maximum speed that they will be prepared to insure a vessel; a speed limit of 50 mph is likely to be a good guideline in this regard. If you require a high-powered and performance vessel insured, you will often need to look for a specialized insurance company. Engine placement is also likely to have an influence on the insurance rates quoted by the underwriters. A vessel equipped with an outboard engine is likely to result in a more cost-effective annual premium, mostly due to the fact that it would be easier to extinguish a fire due to its open and accessible nature, whereas it might be more difficult to put a fire out with the inboard machinery.

What is the intended craft use?

How a vessel is used is also likely to have a significant influence on calculating the annual rates for the marine insurance. A flats boat fisherman on inshore bodies of water will pay significantly less than the charter fishing boat that carries paying guests on board.

What steps to take to save on the boat insurance premium?

If you are looking to attract the most competitive insurance rates for your boat and related equipment, you might find that the following have the potential to help:

  • Taking and completing a boat safety course
  • Having a good credit score and driving record
  • Storing the vessel (small trailable boats) in locked and secure premises when left unattended, such as a dedicated boathouse or garage
  • Having a full-out of the water survey and valuation report carried out by a marine surveyor
  • Having the right level of safety devices on board, like lifeboats, lifejackets, emergency distress items, etc

Comparison shop the insurance market

Lastly, if you are able to put in the time to get quotes from 3 or 4 specialized marine insurance companies, it is likely to be the best way to making certain you are able to attract the most competitive insurance rates in the market. Since there is such a wide array of quality insurance companies, there is no reason why you shouldn’t take the time to get multiple quotes for your boating activities.

Insure My Boat

Jet Ski Insurance: Do You Need Jet Ski Insurance?

Personal watercraft (also known as a Jet Ski, Waverunner & Sea-Doo) offers hours of adrenaline-inspired fun and excitement on the water. A PWC rider appreciates the importance of safety on the water, yet it is also vital to consider the financial obligations to guarantee a jet ski is protected against unforeseen hazards. Jet Ski insurance can help protect against damage, theft, or vandalism – bodily injury to a rider or third party – medical cost resulting from an accident.

Yamaha Jet Ski

It is a mistaken belief that a medium-sized craft or PWC is protected against loss, damages, or liability under an individual’s home insurance plan – that is not often the case, a specialized policy is required to have a sufficient level of protection in place. Before hitting the waters on a PWC, a customized watercraft insurance plan is a sensible investment. If a home insurance plan does come with a degree of coverage for recreational vehicles, than this is often restricted to the basic liability coverage only.

Jet Ski Insurance Rates

In most cases, a jet ski insurance quote is available at a affordable rate, with the minimal level of coverage costing in the region of $125 per year – although rates are dependent on several different factors. Such as those relating to type and class of PWC to insure, cruising waters, use (private use only or include water sports), storage location, period in use, and personal info (age, experience, claim history, etc.) Once details are provided direct to an insurer or broker, it is possible to obtain a competitive Jet Ski insurance quote in a matter of minutes.

Coverage in Place

Whether a PWC is out on the open water, dry-docked on moorings or ashore, or trailed on the highway, it is essential to be aware of what’s covered in the event of a loss. Personal watercraft insurance is designed to cover, among other circumstances and events:

  • Physical Damage
  • Liability
  • Towing Assistance
  • Protection while on Land
  • Damage to Crafts and Docks
  • Fuel Spill Liability
  • Roadside Assistance
  • Sporting Liability
  • Wreckage Removal Coverage
  • Medical Costs
  • Negligence of other Drivers

Do You Have to Have Insurance on a Jet Ski?

PWC insurance isn’t compulsory in all states – it’s often best to check local state information to establish the requirements of insurance – a lot of states will require a minimum of liability insurance to use on jet ski on there waters. It might also be necessary to put place underinsured or uninsured PWC insurance. A late model PWC can represent a major investment, so it is often worthwhile investing a small sum to protect it and those using it.

Prior to purchasing valid Jet Ski cover, its important to read the policy terms, conditions, and exclusions noted in the policy document – for instance, in most, if not all policies, a claim wouldn’t be possible if a PWC is ridden at night or a rider is without a official driver’s license.

Avoid ‘one size fits all’ policies, as the coverage, deductibles, and premiums often differ widely depending on an individuals own personal requirements. Its often more beneficial to contact one of the dedicated marine insurers (rather than those that dabble in all-types of insurance policies), such as BoatUS, SkiSafe, and United Marine for instance – as these insurers are more likely to put forward a tailored insurance plan at a price that is highly affordable.

In addition, if taking on the ownership of an aged, seized, confiscated or repossessed boat or Jet Ski this often has an affect on the insurance so it will be necessary to contact a insurer to determine their particular views on this matter.

Potential Discounts – Jet Ski Insurance Rates

Some of the discounts offered by the main insurance companies consist of – multi-vehicle policies, claims-free history, responsible rider, complete safety course, paid in full, idle assisted steering, and original owner.

All in all, obtaining a customized jet ski insurance quotation is the first step to sensible PWC ownership, guaranteeing a jet ski and other’s injuries and properties are protected at all times.

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Boat Insurance Explained

Get the perfect boat insurance coverage in place to protect a high-value Motor-driven Yacht – Sports Boat – PWC against a range of eventualities, including at sea, in transit, or on moorings. Shop multiple boat insurance quotes to obtain the most comprehensive quotation, cover and cost.

Yacht & Boat Insurance

1 – Coverage Options

The degree of coverage, benefits and exclusions varies greatly with each of the marine insurance companies. Best possible coverage is available at insurers that specialize in one particular type of insurance. Dedicated insurance providers know the precise questions to ask to guarantee the most comprehensive coverage is in place.

Questions asked at the time of calculating the boat insurance rates include – type, class and age of vessel to insure, waters to explore (inland, coastal, or extended cruises), mooring or storage destination, overall value (including all equipment), season of use, claims and boating experience, etc.

2 – All Risks vs. Liability

Comprehensive (also noted as all risks or full coverage) is designed to offer the widest form of insurance coverage for a vessel in commission or static (laid up on water or ashore). Fire, theft, vandalism, accidental damage, collision, etc. form part of a standard boat insurance set-up.

All-risk insurance plans also feature a Protection & Indemnity (P&I) section (also know as the third-party or liability section) to give an adequate level of coverage in the event of damage to a third-party (person or property) – with the insured’s legal liability limit noted on the insurance schedule.

3 – Handling Claims in the Event of an Accident or Loss

Is it an ‘Actual Cash Value’ or ‘Agreed Value’ marine insurance scheme? The type of insurance protection offered can differ in the event of an accident or loss?

An ‘Actual Cash Value’ insurance plan is designed so that the insured value of the vessel and equipment is agreed at the time of the quotation and prior to putting cover in force – so in effect, the insured values are fixed for the duration of an insurance period.

4 – Savings & Discounts

The simplest method to save on insurance premiums is to search money-saving discounts and benefits at renewal. It’s not a good idea to just rely on the existing insurer to put forward the best price and terms in the market. Savings to be found: reduced rates for holding a boating qualification or completing a boat course, as well as discounts for taking out dual policies with a single insurance provider.

5 – Pre-Purchase Survey and Inspection Reports

If a motor-drive or sail boat is amateur built, aged 15+ years of age (or less with certain marine boat insurance companies), a particular type or class known to have a defect, or over a certain length, there might be a requirement to obtain a full out-of-the-water survey and valuation report.

If an insurance quotation is subject to sight of a survey or inspection report, this will need to be presented to the insurance provider prior to arranging the coverage.

6 – Making Changes to the Insurance Policy

Making changes to a typical insurance plan is often a quick and easy process. An add-on or extra to a standard marine insurance policy include:

  • Electronics
  • Dinghies
  • Trailers
  • Altering the period in commission
  • Using a different mooring location
  • Entering a one-off racing event
  • Hiring the boat out for charter
  • Extending the cruising limits

In summary

It is essential to put in place all-inclusive boat insurance coverage to protect a chosen sail or motor-driven boat from a variety of eventualities that might result in the need to make a potential claim.