As with any other type of major asset, it is important to protect your boat from loss due to damage or theft with an insurance policy. The type of policy and coverage you get will be determined by a number of factors, such as the use of the craft, and the type of boat you own. There are many options and coverage types when it comes to Boat Insurance in San Jacinto CA.
Agreed VS Actual Cash Value Policies
Boat insurance can be divided into two main categories, agreed cash value and actual cash value. Actual cash value policies tend to be cheaper to purchase, but in the event of a partial or total loss the value of the policy is calculated by the value of the boat or other watercraft at the time of the claim. Agreed cash value policies, on the other hand, payout the value of the boat at the time the policy was purchased. This often means more up front cost but a higher payment in the event of a loss.
Much like auto insurance, boat insurance covers a wide range of circumstances, depending on the level of coverage purchased and any additional aspects added to the policy. Typically, standard boating insurance is considered “all risk” policies which cover everything not listed as an exclusion. Common exclusions include:
* Cold weather damages
* Manufacturing and design defects
* Damages caused by wildlife
* Rot, mold, corrosion
Coverage normally consists of accident damages from collisions and is meant to protect the policy owner from personal liability in the event their craft damages another person’s property as well as causing personal injury.
Boat owners can add additional coverage options to their policies. These additions can include towing, salvage, and temporary cruising coverage, among others. These optional items can help to protect the owner from additional damages and costs, particularly when boating outside the USA, such as taking a trip to Mexico. This can prove invaluable should the boat break down because the users will have the option of towing the boat to safety.
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