With the warmer months coming around, people in Northeast Florida are looking to hit the water with various types of boats and watercraft. And along with all of the boating and fishing fun comes the potential for personal liabilities. That's why it is important that you have adequate insurance coverage.
Most people may think that their homeowners' insurance riders will cover their boats, but there are many factors that show that a separate boat insurance policy might be needed. While many homeowners' policies are fine for smaller boats and motors, usually with a horsepower limit of 25 to 100 horsepower, anything larger is a risk. Also, homeowners' usually will apply for use on inland waterways, lakes and rivers, but they seldom cover use for coastal inlets or the ocean. With a standard homeowners' policy, there is either limited or no coverage for marine-specific risks, such as salvage work, wreck removal, pollution or environmental damage.
There are two basic types of boat insurance: "agreed value" and "actual cash value." An agreed value policy, usually a more expensive policy, covers the boat based on its value when the policy is written. There is no depreciation for a total loss of the boat. The actual cash value policy, a less expensive route, will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss.
The pricing of the insurance policy are based on factors that include, age of boat, length, value, speed/horsepower, condition, if the boat is used as a primary residence, type of boat, ownership, where it will be operated, boating safety education you have had and your boat driving record.
Along with standard boat coverage, there are other marine insurance policies that cover a wide array of watercraft industry needs. These include personal watercraft, yachts (usually considered over 27 feet), sailboats, dinghy, boat and personal watercraft rentals, boat clubs and professional use (pro-angler, fishing guides and charters).
If you are looking to purchase a new boat this season or if you need to review your existing policy based on the current condition of your watercraft, be sure to contact your J.P. Perry Insurance agent before you leave the dock.