WATERCRAFT INSURANCE
Keeping Your
Watercraft Afloat
With Proper Coverage
P
eople who own boats know
a few things, regardless of
whether those boats are for
personal or commercial use:
They cost a lot of money to
buy, they cost a lot of money for upkeep,
and there are a seemingly endless series
of things that can go wrong with them.
Even so, they sure are a lot of fun. When
it comes to insurance for your boat, you
probably already know that you will want
to have personal property and liability
insurance. In that way, things can feel
much like they do with other vehicles.
If an accident happens, you need to be
covered. You may not know, however,
some of the ins and outs of how that
insurance works.
If you own a boat, you need to have
insurance on it. That’s the bottom line.
Some people are under the mistaken
belief that their homeowners’ insurance
will automatically cover boats, which isn’t
always the case (especially for people who
have newer or more expensive models).
Just like there are many types of boats,
there are also many types of insurance
meant to cover a slew of situations: hull
insurance, all-risk policies, third-party
liability, boat club insurance, professional
policies (for anglers, charter boats, guides,
etc.), and yacht insurance (among others).
Just like there are many types of insurance,
there are also many variables that
can change the potential cost of that
insurance. Here are some of the variables
insurers consider when pricing premiums:
•
• Age of the boat
•
• Current value of the boat
Length of the boat (generally
anything over 57 feet is going to
be considered a yacht)
If you live on the boat, whether
or not the boat is considered a
primary residence
• What the boat is used for
(personal, commercial, etc.)
•
• Condition of the boat
•
Where the boat is going to be
operated
Speed and other engine
considerations
On average, though, you can usually
BY: WAYNE NESBIT
NESBIT AGENCIES
BY: WAYNE NESBIT
NESBIT AGENCIES
12
Wayne Nesbit is a producer at Nesbit Agencies and works
with a wide variety of clients on their insurance programs,
including assisted living facilities, property management
companies, and restaurants. He can be reached at
[email protected] or 952-746-4312
expect that you will be paying one to
t wo percent of the current market
value of the boat as a premium. The
exact cost is going to depend on your
boat, factors like those mentioned
above, and the discounts that you may
be able to receive. It’s best to talk to
a professional to get a good idea of
what you may be looking at both in
terms of cost and need.
YOU SPENT A LOT OF
MONEY ON YOUR
BOAT. YOU PROBABLY
SPEND A LOT OF
TIME ON YOUR BOAT.
WHEN IT COMES
TO YOUR CAR AND
HOUSE, YOU ALMOST
CERTAINLY HAVE ALL
THE PROTECTIONS
IN PLACE THAT YOU
NEED. CAN YOU
SAY THE SAME
THING ABOUT YOUR
WATERCRAFT?
It pays to be sure and we can help. For
more information, contact me at
952-746-4312. +