Purchasing watercraft such as a yacht, speedboat or sailboat is an individual preference. The difference in boat style makes purchasing insurance a little different than just a basic package. There are several boat packs to choose from. It is just making sure that you purchase the coverage you need at the best price available. The following information will be needed to receive a quotation.
– Where you are going to use the boat. It could be inland waters, lakes or out in coastal areas.
– The agreed value of the sailboat including all the rigging
-Restrictions of operators. You may just have to name any other individual who may operate the boat.
-Driver boating license, regular drivers license, boat registration. If it is a big sailboat, a more comprehensive type of license would be necessary.
Definitions between the options Actual Cash Value, Agreed Value or Replacement Cost.
– Actual Cash Value – insuring for ACV would be the value after depreciation at the time of loss. This may not be the amount of Insurance shown on the front page of the policy.
-Agreed Value – In the event of a total loss, the insurance company will pay out the total amount as shown on the insurance policy.
– Replacement Cost provides a total loss guaranteed replacement cost. It will pay out the total amount shown on the policy with no depreciation to the vessel.
Depending on the age of the vessel, you may be required to have an in-water or out of water survey done. This would be done if it is over 7 years old. This serves two purposes, one it provides a safety check and two, it gives you an idea of the value.
A general sailboat policy would offer various types of coverage such personal and third party liability. Based on a total loss, there is coverage as follows:
-Hull and machinery – would include all fuel lines, electrical lines, all parts of the vessel
-Personal effects – Coverage is provided usually as a percentage of the total value of the vessel. The amount can be increased for an additional premium. This would include water skis, tubes, scuba diving and all other water equipment.
-Personal Liability -There are two different types of liability. One is personal and one is for a third party. Personal liability is for yourself or anyone else on your boat. It will pay for medical damage or property damage.
– Third party liability -This would cover you for any other vessel for property damage or injuries to another party should you be found negligent while you are operating your yacht.
-Uninsured boat coverage would take care of any damage of repairs if you are involved in an accident and the other party has no coverage to pay for your damages.
The cost of insurance for the sailboat would depend on many of the factors listed above. There are many different sailboat courses that when completed, offer discounts. The bigger the boat, the more qualifications you will need in order to operate it. The course is set up similar to the driving schools where you have classroom time, as well an on the water training.
A few of the learning centers that are available around the state are as follows:
–American Boat Operator’s Course – boating safety courses with online certification tests for a number of states.
-Boat/U.S. Foundation Course line database listing the various safety courses available nationwide
-PWC Safety School – Offers online courses and certification for PWC operators in several states.
-Safe Boating America – Safe Boating America classes must meet the State Educational requirements for operating a boat.
-U.S. Sailing – Programs offer instruction in small and large sailboats. All levels of instructions are available around the country for beginners and for advanced boaters with advanced skills.
Insurers also know full well of the popularity and the amount of boats in the water on a daily basis. The insurance company has set up their claims reporting centers accordingly. There are adjusters all over the world to deal with any type of emergency.
It is expensive owning a large sailboat. Depending on the length, dock or slip fees, storage, raising & lower the masts, sails, rigging and yearly maintenance fees, the larger the boat, the larger the sails, strong and longer rigging. You have to be prepared to put out the money to maintain the boat. If not, the boat could cause damage that would not be covered by your insurance policy.