Insurance is one of the key things involved in boat purchasing. Also, it is essential to separate it from the owner’s policy because the latter does not cover most risks such as pollution, environmental hazards, shipwreck, etc. However, exceptions are provided in some cases.
While we don’t offer insurance services, we have third-party partners that are available to help you through the process. They are available to guide you through the whole insurance registration process. For more information, you may contact them through the email provided below.
Factors Considered During Insurance
First, there are certain factors insurers must consider before offering or approving any insurance policies. These factors are critical determinants that the insurance complements with your needs. They are:
The Age of the vessel
It refers to how long you have been using the vessel for counting from the date of procurement from a manufacturing company.
The Boat Measurements
It includes the overall length, waterline length, beam measurements, weight, sailing plan, etc.
The value is essential to determine the insurance policy you are taking. The insurance company is interested in knowing how much weight they are protecting to enable neat calculations towards future indemnity.
The speed level adds up to the value of the boat.
Certification involves all paperwork and legal issues involved. It must show that the boat meets the country’s standards.
Current Location of the Vessel
The current location must be made known to the insurance company. It will determine their jurisdiction and, therefore, power over the vessel.
Type of Boat
The types of boats include saltwater, performance, cruiser, etc.
Types of Insurance
There are two significant types of boat insurance which are actual value and agreed value.
It costs less in the beginning but depreciates. Essentially, the insurance policy pays up to the vessel’s actual value if it is declared a loss.
As the name implies, it is agreed upon. Hence, the policy pays the value agreed upon at the time of the insurance contract, and it can only increase upfront; it would not depreciate.
Why Insurance Policies?
Insurance serves as a protection tool against any accident concerning your boat. Hence, there are different types of insurance coverage. They include:
It covers a specific or named injury on your boat, for instance, in case of an expensive feature.
It covers the whole yacht. The insurance company repays value for any damage done to it.
This insurance protects the wear and tear of the vessel.
The cost of towing is entirely on the high side. Getting insurance minimises these costs.
Taking a Boat Insurance
Before you insure your boat or yacht, it is expedient that you conduct a little research and weigh the pros and cons and the company itself. The best method of analysis is confirming their records of insurance.
At Icecat, our insurance partners are ready to guide you throughout the whole process. You can contact them for more information.