Marine insurance comes in different forms depending on if a vessel is navigating on the ocean or is being used on inland waters such as the Great Lakes. Insurance can include coverage for yachts, coverage for a houseboat and standard coverages for inland boats. Boats come in many types and have many uses such as transporting cargo, chartering as well as pleasure cruising. A boat or marine insurance policy can also come in different types and coverages.
Yacht Policy
A yacht policy is used to cover pleasure craft, including motorboats, sailboats and the operation of yachts. A typical policy provides coverage for the boat and contents as well as liability for collision or injuries that may occur. Another type of yacht policy that can be purchased is for "all risks." This type of policy provides coverage for all risks that are not specifically excluded in the policy, such as ordinary wear and tear.
Houseboats
An insurance policy for a houseboat can be purchased as an actual cash value policy or an agreed value policy. An actual cash value policy will pay the actual costs of the boat less any depreciation when there is an accident that totals the houseboat. An agreed amount policy provides a specific payment amount to replace a boat that has been damaged beyond repair. Separate coverages for liability and property damage will also be needed on the policy.
Physical Damage Coverage
One important type of standard coverage that is needed for inland boats is physical damage. Physical damage coverage will pay for repairs to a boat when it is damaged by a peril that is covered by the insurance policy. These can include perils such as wind, rain, wave action as well as loss or damage caused by theft. Physical damage coverage can also cover collision with another boat, hitting objects that are submerged underwater as well as hitting a dock.
Liability Coverage
Liability coverage on a boat insurance policy contains many coverages that may be needed by a boat owner. One type of coverage is known as wreck removal. This coverage will pay for the removal and disposal of a boat from the water. Liability coverage can also provide protection when a mechanic or marina employee becomes injured while aboard a boat. If a boat is being chartered to someone else, separate liability coverage may need to be purchased.
Factors Affecting Costs
There are many factors that are used to determine the cost of a boat or marine insurance policy. These may include the length of the boat, the age of the boat and the type of boat. Types of boats included may be sailboats, a houseboat or powerboat. The size and type of engines in a boat can also affect the cost of an insurance policy. An insurance company will also want to know where the boat is going to be used, such as inland lakes or on the ocean.
