Boat Insurance Information

Article From: Boat/US Magazine

Five major hurricanes in less than a year are having a profound effect on insurance markets and BoatU.S. Marine Insurance and its policy underwriter, CNA Insurance Group, have been challenged to rethink the way policies are written as well as their rate structures.

Unlike homeowners insurance, the boat insurance industry cannot tap into Florida's windstorm pool, which provides financial assistance for considerable losses related to catastrophic events. The industry has traditionally compensated for large-scale losses by building their own "pool" to cover claims, but unfortunately hurricanes Isabel, Charley, Frances, Ivan and Jeanne have significantly depleted the reserves built up in the program since the last time it was tapped in 1992 for Hurricane Andrew.

To give you some perspective, losses from Hurricane Isabel in 2003 alone were 60% larger than the those from 1992's Hurricane Andrew--and the loss from Hurricane Ivan alone was 50% larger than Hurricane Isabel. To prepare for the future, the boat insurance industry now has to rebuild those reserves back to sufficient levels to handle the next catastrophic event.

For BoatU.S. policyholders this means rate increases at various levels to boat owners in hurricane prone areas, as well as changes to deductibles and dock liability for all policyholders during NOAA named storms. All insureds can find the details in the January issue of Seaworthy and will receive specific information with their policy renewal.

BoatU.S. Marine Insurance is encouraging boaters to shop around for their boat insurance in 2005 but cautions them to compare coverages in addition to price. For example, BoatU.S. policies cover salvage assistance and wreck removal, but not all providers do. Finding the resources yourself and paying out of pocket can be extremely expensive and difficult in the aftermath of a catastrophe.

Ask fellow boaters about their storm experiences. Sometimes the best policy becomes apparent in the claims service you receive in the wake of a disaster.

Article From: www.personalinsure.about.com

According to information from the U.S. Coast Guard, property damage to boats has been increasing. Many states now require boats to be insured. If you have your boat on a loan or use a marina, you will probably also be required to insure your boat. If you are not required to insure your boat, it is important you still consider purchasing boat insurance.

Boat insurance works similar to the insurance for your car, and can protect in the same way. But, since boats have different features than your car, you will want to make sure you have all the coverages you need and any savings that may lower your premium.

List of Coverages and Discounts

Insurance coverages you will want for your boat:

• liability
• physical damage
• theft
• medical payments
• motor coverage
• trailer coverage
• boat covers
• docking fenders
• communications devices

Discounts you may be entitled to:

• new boat
• automatic fire extinguisher
• burglar alarm
• ship-to-shore radio
• approved boating education course

Remember, since every boat is unique please make sure to check with your insurance agent to see if you need any additional coverages or would be eligible for additional discounts.