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Keeping Your Watercraft Afloat with Proper Coverage

People who own boats know a few things, regardless of whether those boats are for personal use or for 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 potential 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

· Length of the boat (generally anything over 57 feet is going to be considered a yacht)

· Current value of the boat

· 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 expect that you will be paying 1%–2% 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 Wayne Nesbit at 952-746-4312.

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