10 Ways to tell a Good Boat Insurance Policy from a Bad one

​If you're looking for boat insurance, or if you already have boat insurance, you may want to take a close look at your policy. It's very important that you know exactly what you're getting before you buy a new policy or renew your old one.

    That's because when it comes to boat insurance, there are huge variances between one company's boat insurance policy to the next. Sometimes there are very big differences that go unnoticed until a claim needs to be filed.

    So I have comprised an easy checklist for you, so that you can go over your boat insurance policy to see if you have adequate coverage. A common theme you're going to be hearing throughout this article is comparing standalone boat insurance to boat insurance that is attached to a homeowners policy. There are usually huge differences between the two as far as what is covered.

Nine times out of 10, a standalone boat insurance policy is going to offer more and better coverage than a boat that is insured under a homeowners policy. There are some exceptions where companies offer excellent boat insurance coverage as a homeowners endorsement. But many other homeowners policies that attach boat insurance are lousy!. You certainly wouldn't take a boat out in the water if you are aware of any holes that might leak. So why would you want boat insurance coverage that has more holes in it than Swiss cheese?

Here are some of the things to look for when reviewing your boat insurance policy:

1. Many boat insurance policies get picky about where you store your boat during boating season. Some homeowners insurance companies won't even cover a boat that is moored in a marina. How crazy is that?
2. A good boat insurance policy will always be flexible with mileage. Most companies offer up to 75 nautical miles at no additional cost with the option to purchase more coverage if you need to go farther.
3. Boats that are attached a homeowners policy typically have less flexibility about the size and the horsepower of the boat. If you have a larger or more powerful boat, you're much better off with a stand-alone boat insurance policy.
4. Liability coverage. Liability coverage is an area that many boaters settle for state minimum limits. This is a huge mistake simply because liability coverage on boats is very inexpensive. But in addition to how much is covered, the difference between a good policy and a bad policy can be how exclusive the liability coverage is. For example a good boat insurance policy will offer the liability coverage for spillage and fuel leakage. A good boat insurance policy will also pay the recovery costs for debris removal. These types of things aren't covered with many boat insurance policies.
5. Coverage for your personal property. If you have personal property that gets stolen or destroyed you should be able to find very adequate coverage for very minimal cost. However you will find that a bad insurance policy isn't much help with personal property. This is especially true for you fisherman, who have a lot of money invested in fishing equipment. Make sure your coverage is adequate.
6. Trailer coverage. A good boat insurance policy will offer the option of insuring the trailer as well. Some trailers can cost into the thousands so it's not a part of insurance you want to neglect. Trailer coverage is fairly inexpensive as well.
7. Accessory coverage. Have you made any improvements to your boat? Is your boat totally tricked out? A good boat insurance policy offers free accessory coverage up to a certain amount and will also give you the option to purchase extra coat coverage if you need. People who make expensive improvements to their boat need to keep this in mind. One example would be those who have nice stereo systems installed into their boat.
8. A lousy boat insurance policy will sometimes exclude very popular boating activities. A good boat insurance policy will not do this. But some of you need to look at the exclusions on your boat insurance policy. Because many do not offer coverage when you're involved in a fishing tournament, regatta or poker run.
9. A good boat insurance policy will also offer uninsured boater's coverage. This works exactly like uninsured motorist works with auto insurance. This is simply the marine version of that. Also, a good boat insurance policy will offer some type of medical payments coverage as well. And again these coverages are very important and inexpensive, so don't overlook them.
10. Although companies very greatly on this how you would be paid in case of a total loss is very important. Most boat insurance policies that are attached to a homeowners policy usually only offers an actual cash value basis. Many of them do not offer on an agreed value basis. But many standalone boat insurance companies will cover your boat on an agreed value basis, provided your boat qualifies.

Summary: it would be a great idea for you to review this checklist at the same time while looking at your boat insurance coverage. How does your boat insurance policy stack up? If you're finding a lot of holes in your policy as far as how much or what is covered, perhaps you should shop around for other boat insurance quotes.

This thing will probably surprise you the most is the boat insurance policies with very adequate coverage don't cost that much more than a lousy boat insurance policy. So make sure you have proper and adequate coverage before taking your boat out on the water this year.


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