Marine Insurance: Selecting the Right Coverage
There are many things that you need to understand in selecting the best insurance policy for your marine transportation. To be able to get the policy that is not only right but also provides maximum coverage, you must ascertain what it is that you really need from a policy. To do this you have to know what kind of marine transportation you have because a boat, like a human being, is unique in its own way and may have specialized demands founded on its use as well as its history. You have to realize that an old boat's needs are different to that of a new one.
Boat owners should be aware of their options when it comes to policies in marine insurance. This way they could not only purchase a policy that caters to the specialized needs of their boat but also tailor the policy according to the lifestyle that they lead especially in the use of their boat.
Coverages in marine insurance policies are actually categorized in two main types, the comprehensive and third-party coverages.
In case your boat was damaged or was lost accidentally at sea or even at the marina, this is protected by the comprehensive coverage policy. When other people are injured or dies or when properties are damaged because of a boating accident, these are also covered in the provisions of the comprehensive type of policy. Your boat as well as your trailer and other specified equipment are all included in the coverage of a comprehensive insurance policy when you are in the water or even on land, although only for a particular distance stipulated in the contract.
If you are the kind of person who feels that you would only need a policy that offers minimum protection for your vessel, then you could go for the third-party type of coverage in marine insurance. This kind of insurance coverage provides protection against any liability that you might incur, whether it be damage or injury, to a third party, his vessel or property.
Once you have decided on what type of insurance coverage you want that would answer your protection needs, not only for your boat but also for yourself, then to select on whether you would want an agreed value or actual value policy. The agreed value package is where your property's fair value will be decided by you and your agent. The value should be one that depreciation will not affect. For the actual value policy, your property's estimated value based on depreciation markers as well as its present condition will be the only amount that you will get once you file a claim.
You could also choose to tailor your marine insurance policy's coverage to suit your needs and that of your boat. There are extensions that could be included in your policy like coverage during competitions, towing and personal gadgets such as radios and phones. As you have the best knowledge as to what kind of risks you expose yourself and your boat to, you are the best judge as to what marine insurance policy to get.
Just a simple tip before you decide on choosing a marine insurance policy, take time to sit down and list the number of things you want protected when it comes to your vessel. Take into consideration such cases as loss or damage and what you might what from your insurance should that happen. This way, you will be able to find the coverage that best suits your boat and your needs.
by Maria-Goldsmith 19 years ago