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June 28, 2014 By Julian

Boat Insurance

Transportation_KidsJumpingOffBoatMost companies provide limited coverage for property damage for small boats such as canoes and small sail boats or small power boats with less than 25 mile per hour horse power under a homeowners or renters insurance policy. Coverage is usually about $1,000 or 10 percent of the home’s insured value and generally includes the boat, motor and trailer combined. Liability coverage is typically not included–but it can be added as an endorsement to a homeowners policy. Check with your insurance representative to find out if your boat is covered and what the limits are.

Larger and faster boats such as yachts, and personal watercraft such as jet skis and wave runners require a separate boat insurance policy. The size, type and value of the craft and the water in which you use it factor into how much you will pay for insurance coverage.

For physical loss or damage, coverage includes the hull, machinery, fittings, furnishings and permanently attached equipment as part of either an actual cash value policy or on an agreed amount value basis. These policies also provide broader liability protection than a homeowners policy. But there are distinct differences between the two types of policies.

Actual Cash Value policies pay for replacement costs less depreciation at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the vessel’s approximate market value. Partial losses are settled by taking the total cost of the repair less a percentage for depreciation.

Agreed Amount Value basis policies mean that you and your insurer have agreed on the value of your vessel and in the event of a total loss you will be paid that amount. Agreed Amount Value policies also replace old items for new in the event of a partial loss, without any deduction for depreciation.

Physical damage exclusions might include normal wear and tear, damage from insects, mold, animals (such as sharks), zebra mussels, defective machinery or machinery damage.

Boat insurance also covers:

  • Bodily injury—for injuries caused to another person
  • Property damage—for damage caused to someone else’s property
  • Guest passenger liability—for any legal expenses incurred by someone using the boat with the owner’s permission
  • Medical payments—for injuries to the boat owner and other passengers
  • Theft

Most companies offer liability limits that start at $15,000 and can be increased to $300,000. Typical policies include deductibles of $250 for property damage, $500 for theft and $1000 for medical payments. Higher limits may be available. Additional coverage can be purchased for trailers and other accessories. Boat owners may also consider purchasing an umbrella liability policy which will provide additional protection for their boat, home and car.

Boaters should also inquire about special equipment kept on the boat, such as fishing gear, to make sure it is covered and verify that towing coverage is included in the policy.

Boat owners should also inquire about discounts for the following:

  • Diesel powered craft, which are less hazardous than gasoline powered boats as they are less likely to explode
  • Coast Guard approved fire extinguishers
  • Ship-to-shore radios
  • Two years of claims-free experience
  • Multi-policies with the same insurer, such as a car, home or umbrella policy
  • Safety education courses, such as those offered by the Coast Guard Auxiliary, U.S. Power Squadrons, or the American Red Cross.

Boat Safety

There are thousands of recreational boating accidents per year. Contributing factors to these accidents include traveling too fast for water or weather conditions, driving under the influence of drugs or alcohol, failing to follow boating rules and regulations, carelessness and inexperience.

To prevent boating accidents, we offer these safety suggestions:

Care and protection of vessel

  1. Check weather forecasts before heading out.
  2. Let someone know where you’re going and when you expect to return.
  3. Check engine, fuel, electrical and steering systems, especially for exhaust-system leaks.
  4. Carry one or more fire extinguishers, matched to the size and type of boat. Keep them readily accessible and in condition for immediate use.
  5. Equip the vessel with required navigation lights and with a whistle, horn or bell.
  6. Consider additional safety devices, such as a paddle or oars, a first-aid kit, a supply of fresh water, a tool kit and spare parts, a flashlight, flares and a radio.

Care and protection of crew and guests

  1. Make sure that every person on board the boat wears a life-jacket.
  2. Know and obey marine traffic laws, the “Rules-of-the-Road.” Learn various distress signals.
  3. Keep an alert lookout for other watercraft, swimmers, floating debris and shallow waters.
  4. Pay attention to loading. Don’t overload; distribute the load evenly; don’t stand up or shift weight suddenly in a small boat; and don’t permit riding on the bow, seatbacks or gunwales.
  5. Don’t operate a boat while under the influence of alcohol or drugs.
Skippers can obtain free advice and boating-safety courses from the U.S. Coast Guard Auxiliary. Upon request, the auxiliary will conduct a Courtesy Marine Examination (CME) on your boat, checking electrical and safety equipment and fuel hoses. Boats meeting safety standards are awarded the CME decal “Seal of Safety.”

Source: Insurance Information Institute, “Boat Insurance” http://www.iii.org website. Accessed November 30, 2015. http://www.iii.org/article/boat-insurance

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

Filed Under: Miscellaneous, Personal, Theme 43

June 28, 2014 By Julian

15 Reasons For Failing A Vessel Safety Check

15 Reasons a Vessel Might Not Pass a Vessel Safety Check (VSC) Transportation_RescueBoatThe following represents a sampling of 100650 Vessel Safety Checks.

  • 74.873% Passed the VSC
  • 25.127% Failed the VSC

Items that Failed: (Note: This is a percentage of ALL vessels examined and some had two or more items that failed so these numbers will not add up to 100%.)

  • Display of Numbers – 5.435%
  • Registration / Documentation – 5.574%
  • Personal Flotation Devices – 2.832%
  • Visual Distress Signals – 12.221%
  • Fire Extinguishers – 4.501%
  • Ventilation – 1.451%
  • Backfire Flame Control – 1.639%
  • Sound Producing Devices / Bell – 5.156%
  • Navigation Lights – 8.465%
  • Pollution Placard – 2.375%
  • MARPOL Trash Placard – 2.802%
  • Marine Sanitation Device – 2.921%
  • Navigation Rules – 2.742%
  • State and/or Local Regulations – 10.432%
  • Overall Vessel Condition – 4.670%

Recommended Items not Found: (Note: These items are not required to pass the VSC.)

  • Marine Radio – 33.433%
  • Dewatering Device & Backup – 14.347%
  • Mounted Fire Extinguishers – 21.570%
  • Anchor & Line for Area – 11.257%
  • First Aid and PIW Kits – 27.928%
  • Inland Visual Distress Signals – 24.252%
  • Capacity / Cert. of Compliance – 28.246%

Discussion Items – 14.704%

a. Accident Reporting / Owner Responsibility
b. Offshore Operations
c. Nautical Charts / Navigation Aids
d. Survival Tips / First Aid
e. Fueling / Fuel Management
f. Float Plan / Weather & Sea Conditions
g. Insurance Considerations
h. Boating Check List
i. Safe Boating Classes

 

Source: U.S. Coast Guard, “15 Reasons For Failing a Vessel Safety Check,” http://wow.uscgaux.info website. Accessed November 30, 2015. http://wow.uscgaux.info/content.php?unit=V-DEPT&category=why-boats-fail-a-vsc

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

Filed Under: Miscellaneous, Personal, Theme 43

June 28, 2014 By Julian

Accident Reporting

Misc_ChecklistFederal law requires the operator – or owner, if the operator is deceased or unable to make the report – to file a boating accident report with the State reporting authority when, as a result of an occurrence that involves a boat or its equipment:

  • A person dies
  • A person disappears from the vessel under circumstances that indicate death or injury
  • A person is injured and requires medical treatment beyond first aid
  • Damage to vessels and other property totals $2,000 (lower amounts in some states and territories) or more
  • The boat is destroyed.

You can help the Coast Guard and its boating safety partners to save lives by understanding and complying with this requirement.

Download an online fillable accident reporting form here.PDF image

Download an online fillable accident reporting in Spanish here.
PDF image

Most states and territories accept this form.  If you have an accident, file the form within 48 hours for a fatal accident or within 10 days for a non-fatal reportable accident with your state or territorial Boating Law Administrator.

Source: U.S. Coast Guard, “Accident Reporting,” http://www.uscboating.org website. Accessed November 30, 2015. http://www.uscgboating.org/safety/accident_reporting.aspx

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

Filed Under: Miscellaneous, Personal, Theme 43

June 28, 2014 By Julian Aston

IN: What You Need to Know About Boat Insurance

Dear Valued Customer,

The enjoyment of owning and operating a boat also comes with huge responsibilities regarding safety and protection. The topics of this issue of “————————-.”

Read on and you will learn that most insurance carriers provide limited coverage for property damage for certain boats. Understand the rule of thumb regarding insurance coverage and how you obtain broader liability coverage. Find out why your vessel might not pass a safety check, understand the Federal law requiring boat operators or owners to report accidents, and more.

Please contact us for more information. We have knowledgeable people on our staff who understand boat insurance.

We appreciate your continued business and look forward to serving you.

Kind regards,

Filed Under: Miscellaneous, Personal, Theme 43

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