THURSDAY, MARCH 30, 2017
So you're thinking about buying a boat. Or maybe you've done it and bought the boat already. Congratulations! But boats are unique in their coverage needs. Ohio boat insurance is designed to handle the special situations boat owners often face. For example, how do you cover damage to your boat? Are you aware of the different coverage options available? And how those options affect you? Read on to find out the options available and to help decide which option is the best one for you. Have questions? Need to discuss your boat insurance? Call us at (937) 592-4871 or fill out our boat quote request form and we'll be happy to help!
How do I cover damage to my boat?
Ohio boat insurance is designed to cover damage to the hull and motor. Physical damage coverage is what is needed here. It's similar to physical damage coverage on a vehicle- collision with another boat or other object, overturn, vandalism, theft and fire are common things that can happen to a boat.
Here are some of the options we have available to cover damage to your boat (please note- not ALL Ohio boat insurance offers these options, so ASK!):
Total Loss Replacement/Purchase Price
Total Loss Replacement/Purchase Price is available on previously untitled boats up to one model year old. In the event of a total loss, this coverage replaces the insured boat with a previously untitled boat that is, to the extent possible, the same make and model, and which contains comparable equipment. If the boat is not replaced, or over five model years old at the time of loss, the purchase price is paid. In the event of a partial loss, the coverage pays the lowest of the amount necessary to replace the stolen or damaged property, the amount necessary to repair the damaged property to its pre-loss condition, or the Purchase Price listed on the declaration page less the deductible.
Actual Cash Value
Actual Cash Value coverage is the most economical choice when it comes to insuring a boat. Actual Cash Value is determined by the market value, age and condition of the boat at the time of the loss. This coverage will pay the lowest of the amount necessary to replace the stolen or damaged property, the amount necessary to repair the damaged property to its pre-loss condition, the Actual Cash Value at the time of loss, or the market value listed on the declarations page less the applicable deductible. This is the most common option, and similar to how vehicle claims are paid.
In this situation, you provide the value of the boat (based on real-life numbers) and this becomes the rating base (how premium is calculated) for the physical damage. In the event of a total loss, this settlement method pays the rating base regardless of the Actual Cash Value. In the event of a partial loss, this settlement method pays the lowest of the amount necessary to replace the stolen or damaged property, the amount necessary to repair the damaged property to its pre-loss condition, or the agreed value listed on the declaration page less the applicable deductible. Please note, agreed value must be verified at time of application.
What coverage options are available to cover damage to my boat IF I travel?
Most Ohio boat insurance policies have a limitation on navigation- 75 nautical miles is pretty common. For example, here's the definition from one of our policies- "We’ll provide coverage for navigation of all inland lakes, rivers and navigable waterways of the continental U.S. and Canada, including ocean waters 75 nautical miles or less from the coast of either the U.S. or Canada. This does not include the territory or territorial waters of other countries."
With our boat insurance, the navigation limit can be expanded for additional premium, for example to 125 nautical miles.
If you go to Mexico, some Ohio boat insurance policies offer Mexico Physical Damage coverage (you must have comprehensive and collision coverage on the policy). . You must purchase liability insurance through a licensed Mexican insurance company for coverage to apply in Mexico. An automatic extension of the Physical Damage portion of the policy applies to cover losses occurring within Mexico, including ocean waters within 75 nautical miles of its coast.
Ohio boat insurance can cover many things, but most people are concerned about damage to the boat. Hopefully this article gives you the information you need to decide which coverage option would work best for you. Questions? Want to discuss your boat insurance, whether for an existing boat or one you want to purchase? Call us OR request your Ohio boat quote and we'll get back with you promptly!
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