Tips for purchasing boat and yacht insurance.

The South Florida lifestyle has an abundance of opportunities to enjoy the Atlantic Ocean, intracoastal waterways and lakes that entwine our landscape. In Florida there are 12.5 million boat registrations according to the NMMA. captains in Boca Raton, Palm Beach and Fort Lauderdale own several types of sailboats, speed boats, motorboats, and yachts. But not everyone has the proper coverage and are exposed to serious liability or loss.

Let stake a look at the types of boat coverage that are available and some considerations that you might not be aware of.

Boat insurance covers you for liabilities associated with personal injury while on your boat and also covered damage or theft of your marine equipment. You may choose replacement cost or cash value in the event of a total loss. Boat and Yacht insurance also protects you from damages that your vessel causes to docks, other boats or personal and commercial property.

When you inquire about marine insurance you have the choice of comprehensive coverage which insures several parts of your marine assets such as:
• Fishing equipment
• Physical damage to the boat from running aground
• Vandalism
• Theft of you boat or its engines and equipment
• Fire
• Flood
• Windstorm

Agreed Value vs. Market Value
Another consideration when purchasing marine insurance is the Agreed Value” option vs. the “Market Value” option. This is important as, just like everything else, the value of your yacht, speed boat, or sailboat will depreciate in value each year so what happens is that the owner and the insurance company agree to a set value for the vessel so when there is a total loss you get paid for that amount. With Market Value, your boat is insured for the market value at the time of the claim which can be substantially less that what it would cost to replace the boat today. Years of depreciation reduces the amount you will receive in order to replace that boat.

Out of water incidents
What happens when you have an accident while the boat is out of the water or being transported on a Trailer? You car insurance covers you and overrides you marine insurance in the event you have an accident while on the road. But this is not sufficient because your auto policy probably does not have enough coverage to protect you from expensive claims due to damage of your yacht. Also this policy will not cover you for bodily injury, property damage or loss of life while you marine vessel is on land.

Home insurance may protect you from damage to your marine assets while they are parked on your property but will not cover theft or vandalism. This is where an Umbrella Insurance policy comes into play.

Umbrella Policy for your yacht or boat
If you add an umbrella insurance policy this will kick in where your home, auto, and marine insurance falls short. This type of policy provides you with complete protection no matter where or what happens involving your boat.

Suspending coverage
Many boat owners in the northern part of Florida often choose to lay up or suspend their marine coverage in the colder months when the boat is not in use. You must be cognizant of the renewal and expiration dates to ensure your coverage is in tact when you hit the waters.

Navigational Limits to your policy
Your yacht or boat insurance policy most likely will contain what is referred to as “Navigational Limits” This means that there are limitations to how far off the coast your policy protects you. These territories are set forth by geographical points starting from Maine down to the Florida panhandle. Always make sure you know these limitations before you set sail so you know your navigational boundaries. Check with your insurance agent to see if you can extend the boundaries for a one time trip.

As with any type of policy you can save money by bundling your policies, taking safety classes, having good safety equipment and technology or having auto turn off capabilities in case of the operator or captain getting tossed overboard.

Talk to an experienced Blue Sky Insurance agent about comprehensive marine insurance coverage and how we can save you money and assure you are protected. You can also get a look at what your premiums will be by entering in your information into our boat insurance rate calculator for Florida boaters.