Tag: Insurance

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Boat & Yacht Market

What Costs Are Associated With Buying a Boat?

There are a variety of costs associated with buying a high-end motor-driven or sailing boat.

Sailing Boat

Here are six of the points to consider before deciding to invest in a preferred type of boat:

Insurance

The cost of boat insurance can vary drastically in relation to the type and class of vessel, total insured value, and type of cover required. Contact an insurance broker or agent to get an idea of the likely costs. Also, read the terms and condition related to the home insurance policy as it is possible to include a small boat within this coverage. Plus, there are several steps that can be taken to help get the more attractive premiums from underwriters, such as completing a boating safety course, using specific types of locks, limiting the use, and building up a no claims bonus.

Maintenance

Maintenance costs are easily kept at bay with a new or previously well-maintained second-hand vessel. Boats used in salt or freshwater can benefit with a good wash down after each use. Regular upkeep of the boat can vary with the rates charged in different areas. Certain work like winterizing and oil changes can be more involved and therefore these services are more expensive to have completed.

A pre-owned vessel that hasn’t received the best routine maintenance in the past is likely to need more attention and care in the future. A regular wash of the boat is certain to help with minimizing the exposure and long-term impact of the saltwater environment as well general wear and tear.

A proper schedule of boat maintenance will ensure the entire boat is kept fully serviced at all times. Plus, on lay-up, make sure the mooring lines are properly secure and show no signs of rubbing or sun damage.

A bilge pump should be in full working order and built-in with a battery that has enough performance to operate the system for a sufficient period of time.

Mooring fees

Mooring fees relate largely to the type and location of docking, services required (sanitation, electricity, etc.), and length of boat. A popular mooring at a marine berth in a prime location can be extremely expensive and much in demand, while the buoy or offshore mooring can be more cost-effective and widely available.

Oil and gas

A motor-driven boat with inboard or outboard engine can cost quite a lot and put a dent in the finances. Search for the more fuel-efficient rated vessels. For instance, filling a 75-gallon tank on a single engine motor boat can cost in the region of $350-$400. But, for a less fuel-efficient, high-performance powerboat the costs can increase to about $1500-$1850 for a 300-gallon tank. Plus, there are the costs associated with oil changes.

Winter Storage

Winter storage is essential to maintain the condition of the craft, machinery, and accessories. Storage fees also include the hauling, transporting, and conducting the necessary winterization process. A proper winterize process is needed to protect the boat’s cooling and heating systems. Plus, extra services might be completed at the time of storage or de-winterizing, such as giving the boat a power washing session.

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Insure My Boat

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.

Categories
Boat & Yacht Market

11 Things to Know Before Buying a PWC or Jet Ski

If you are looking to invest in a personal watercraft (or jet ski) there are a variety of points that need careful consideration, such as size and type, safety, transport, insurance, and storage.

PWC to buy tips

Below is a quick overview of what to look for when buying a PWC:

Top tips for buying a jet ski

  • Size – A jet ski is designed to accept 1-4 passengers and the sports ready machine is even able to tow a Wakeboard, skis, or inflatable tube. So, before getting to the stage of investing in a PWC, make sure to determine the right type and size of machine to match the application.
  • Safety – All modern PWC’s are fitted out with safety features to ensure the driver and passengers are kept safe at all times. A standard safety feature is a lanyard, which is needed to cut the ignition should the driver dismount.
  • Specification – A jet ski is usually classified in related to the size of the engine. Hull design, engine, and horsepower will have a significant impact on the speed. A PWC with a long, wide design is able to give a more stable ride, but this shape doesn’t give the most desired maneuverability. A sportier version is narrow and short and gives much more favorable speed and handling opportunities.

Other factors include stroke type, aspiration, and fuel consumption.

Types of Jet Ski

  • Stand-up – This style of Jet Ski is small in size and built with no seat and requires the driver to stand-up while riding it. A 1-person jet ski can be difficult to fully master and relies on a certain degree of athletic ability to maneuver. Solo stand-up Jet Skis are highly agile and used by those wishing to perform freestyle tricks. The stand-up machine is more practical for the thrill-seeker with a certain degree of experience.
  • Sport craft – A solo sport craft is again intended for the single rider and comes with a stationary steering control and seat. The sport craft is larger than the stand-up model, but able to move quite fast and corner aggressively. This is a further type of PWC that can benefit from an experienced hand to control.
  • 2-seater – A 2-seater Jet Ski has a longer hull with space for two seats, so room to accept another person. The speed and maneuverability are slightly diminished on a two-seater, but they do offer a higher degree of stability while traveling straight or making corners.
  • 3 or 4 seater – A 3 or 4 seater Jet Ski is highly versatile, comfortable, stable, and a great choice for families. Common features include an enhanced suspension, cruiser seats, and navigation systems. Even thought these PWC have the longer hull and extra seats, they can still perform quite well with a single rider on-board. Plus, a 3 or 4 seater is a practical choice for towing objects like inflatable tubes.

Additional costs and thoughts

  • Storage – Storage options need to be taken into account. A compact solo Jet Ski is the easiest to store at home (in the garage), while the 4-seater model will need a lot more space. So, if you are space limited for storage, it might be necessary to go for a model that offers ease in storing.
  • Trailer – An appropriate trailer in aluminum or similar material is required for transporting the PWC from storage to preferred body of water. Plus, the towing vehicle will need to have sufficient capacity to tow the trailer/jet ski combination on the highway.
  • Insurance – A comprehensive insurance plan for the Jet Ski is a must-have before starting out on the water. Price and cover vary significantly with the different insurance companies, so make sure to shop around.
  • Fuel – Jet skis rely on fuel and costs differ based on the efficiency and size of the actual machine.
  • Servicing and maintenance – A regular service from a skilled mechanic is certain to help keep the PWC in tip-top condition.
  • Safety equipment – Safety gear of a desirable natural includes life jackets, gloves, slip-resistant footwear, goggles, and wet suit.
  • Protective cover – PWC covers give a desired level of protection while the Jet Ski is laid up. Prolonged periods of sunlight exposure are certain to cause issues with the paintwork. Air intakes can become damaged if left exposed. Plus, a cover can protect from the elements (rain, wind, snow, etc.) if stored in an exposed area.

Categories
Insure My Boat

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.