If you are a first-time boat owner, you should be properly informed about safety risks, liabilities, and emergency procedures of boating before ever leaving the dock. You need to carry recreational boat insurance, and as found on https://www.merrimacins.com/, the value of your watercraft, in addition to the size and type, will be primary factors into the cost of your coverage.
The Basics of Boat Insurance
Powerboats that operate at less than 25 miles per hour or even small sailboats might be covered under a standard homeowners policy. This is general coverage that could include the boat, trailer, and motor. Larger boats and personal recreational crafts require a separate policy. These policies will cover the physical damage that might occur to the boat. It can also include coverage for theft, property damage, and medical payments. Policies are written to address the unique situations that boaters may experience provide a broader scope of liability coverage.
Know the Payout
There are two types of boat insurance coverage:
Actual Cash Value. This coverage would pay for replacements costs less any depreciation for the craft at the time of the loss.
Agreed Amount Value. This payout would be based on a valuation for the craft that both you and the insurer have agreed upon. If a total loss occurs during an incident, you would receive the agreed-upon amount.
Carrying boat insurance is one way to protect your recreational investment. Understand the terms and conditions before signing on the dotted line.