The Basics of Boat Insurance

If you are a first-time boater and you’re searching for information about boat insurance, or you are a veteran who needs a quick refresher on boat insurance basics, you have come to the right place. Physical damage and liability coverage form the core of any kind of marine policy. Your Richardson, TX insurer like Allegiance Insurance Agency can help you pick a perfect policy that suits your needs.

But before then, let’s discuss a brief difference between these coverages:

  • Liability coverage – it will cover legal obligation to a third party due to loss of life, property damage, or injury.
  • Physical damage coverage – It reimburses damages to the vessels and its machinery. An ‘all risk’ physical damage policy is suitable because it covers any cause of loss that’s not specifically excluded in a policy, for instance, collisions with the dock, vandalism, and wind storms. Professionals recommend choosing a policy that can cover your entire vessel when it’s being used, stored, or transported.

As you compare physical damage coverage options, you must know whether the insurance settlement you will claim will be based on “actual cash value” or “agreed value.” An agreed value policy will pay you the amount that’s listed on the policy in case the vessel is destroyed. An actual cash value plan, on the other hand, takes into account the condition of the boat and its depreciation at the time of loss.

Additional boat coverages

  • Personal property –will pay for the loss of clothing, personal effects, fishing gear, among others.
  • Uninsured boater –although this policy isn’t mandatory, it will compensate you for injuries caused by another boat owner who doesn’t have liability insurance.
  • Medical payments – pays for the ambulance and hospital bills after an accident occurs. It also covers injured passengers.

If you are Richardson, TX boat owner and you need a boat insurance coverage, do not hesitate to contact Allegiance Insurance Agency.