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WATERCRAFT AND BOAT
INSURANCE
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Watercraft is a term that is used to generally
describe fishing boats, runabouts, bowriders,
cruisers, inflatables, deck boats, yachts,
houseboats, pontoons, jet boats, personal
watercraft. Special
policies and endorsement are designed for boats and
watercraft to insure that the proper coverage. There
is little standardization of policies for watercraft
and boat insurance. Companies have designed
specific programs to provide this coverage
consistent with their underwriting philosophy.
Companies have homeowners endorsements available for
certain watercraft that provides property and
liability coverage. Also a Personal Watercraft
Policy or a Boat and Yacht Policy is offered as a
"stand alone" policy by some companies. We
will attempt to provide information of a
general nature and explain important coverages
that are necessary for the boat |
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Property Coverage
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Most boatowners
are concerned that their investment in their
watercraft is protected by property insurance.
The coverage for
the hull, motor and other
equipment such as life protectors, oars and
trailers can be covered under the property
section of a boatowners policy. The
property section includes protection while the
boat is being operated, when it is storage or
when it is being pulled by a vehicle. The
coverage in this section is very broad to
provide the maximum protection. Theft,
collision, storm damage, fire are some examples
of coverage afforded by the property section of
the boatowners policy. This section of the
policy includes a deductible (that portion of
the loss paid by the insured). Higher
deductibles offer credits to the policy which
reduces the policy premium. Some boat
policies can cover more than one watercraft.
Many companies require separate policies for
each watercraft.
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Liability Coverage
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Equally as important
as property coverage for the boatowner is liability
protection. Property damage and bodily injury
caused by the operation of the boat can often exceed
the amount of damage to the property damage in a
boating accident. The injury to someone might
be as minor as a slip and fall on the boat or as
devastating as a fatal injury to a passenger.
The liability section covers any operator of the
boat that uses the boat with the owners permission.
All activities (not excluded by the policy) are
covered for bodily injury or property damage.
An example of a liability exclusion is racing
competition. Proper powerboat training and safety
instruction are necessary a qualification for some
policies. Safe boat operation programs are
offered by many government entities such as state
recreation boards and the Coast Guard. All
owners and operators are required to have such
training for permits on many waterways in various
states and on federal park lands.
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Underwriting
Considerations
- Driving record of operators
- Experience of operators
- Loss and accident history
- Area of operation (Inland Waterways, Great
Lakes, Open Water etc.)
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Guild & Landis, Inc.© 2007 |
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