Six Steps to a Better Florida Boat Insurance Policy

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Why Having The Right Boat Insurance Can Give You Back Your Sanity

Everybody loves Florida. And if you own a boat, you quite possibly love the sunshine state even more. Boats are the gateway to endless hours of fun filled hours, spent rolling up and down our great state's shores. For some of us, owning a boat is one of the reasons we live in Florida, even though, as boat owners, we know all about the challenges we sometime have to face. The good news is that having the right Florida Boat Insurance policy can go a long way in ensuring our peace of mind.

If you own a boat, or are planning to acquire one, here are a few points worth bearing in mind:

  • Florida is frequently affected by hurricanes. For that reason, some underwriters might require that you move your boat away from the hurricane landing zone, even if that means moving it out of state.
  • The size and value of your boat may play a role as to whether a limit is set by some insurance companies
  • If you travel to Bahamas with your boat, you may be in luck as some companies include Bahamas in their coverage
  • Some companies will not ensure boats if they are 20 years old or more
  • Capsized catamarans that are not easily righted may not be covered
  • It is cheaper to ensure a sailboat then a speedboat
  • Some companies will require that be a resident of Florida as they want to ensure that you do not fall into the category of absentee owner.
  • Separate windstorm deductible are sometimes put in place

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The right boat insurance can make a real difference. Make sure yours is not a time bomb

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1) No, your homeowners insurance policy does not extend to your boat.

It's a question that is often asked by new boat owners:
Is my boat covered under my existing homeowner's policy?
It is not an unreasonable question because, in some cases, some homeowners policies will include coverage for very small boats, preferably without an engine. A small sailboat for example that you take to your local lake, or a really small boat under $10.000 might be covered, but that's about it. Anything over ten thousand dollars and you will need a separate policy.
Just like you need separate coverage for you car, so you will need separate coverage for your boat

2) Is a boat insurance policy the same as a car insurance policy?

Yes and no. Yes, because just like for a car, a Florida boat insurance covers things like:
  • Bodily injury inflicted on others
  • Property damage (docks, other boats)
You can also purchase coverage against:
  • Theft
  • Vandalism
  • Flood and fire
  • Personal property coverage for your fishing equipment
  • Uninsured boater insurance
  • Tow assistance.
No, because unlike car policies, it is possible to suspend, or lay up coverage for specific periods. For example, you might decide that you will be unlikely to use your boat during the month of December (particularly if it is stored in a dry and covered storage facility) and suspend your coverage during that period.  Just make sure you don't take your boat out on a December sunny day, only to run into situation during which you might discover that you coverage is suspended.

3) How do you keep the cost down?

Your shiny new boat cost you a fair chunk of your savings but the moment you take it out for a spin, it starts depreciating.Boat insurance companies have the option of an "agreed value" (sticker price) as opposed to the "market value". This means that with an "agreed value" any coverage amount paid by the insurance company will not exceed that agreed value. This option is better than the market value, which takes into consideration the full value of depreciation. In other words, a boat bought today will have a different market value 5 years down the line.

4) How do you keep the cost down?

Your shiny new boat cost you a fair chunk of your savings but the moment you take it out for a spin, it starts depreciating.Boat insurance companies have the option of an "agreed value" (sticker price) as opposed to the "market value". This means that with an "agreed value" any coverage amount paid by the insurance company will not exceed that agreed value. This option is better than the market value, which takes into consideration the full value of depreciation. In other words, a boat bought today will have a different market value 5 years down the line.

5) Is there a discount if I keep my boat out of the water

The short answer to this is yes but with the following caveat. If your tow your boat, then the auto policy will most likely cover damages in the event of an accident. Like backing up into someone else's car. Or property.
Questions about Florida Car Insurance? Let Liz and her team of experts give you the answer that matters.
Based on the above assumption, it is crucial to make the following clarifications:
  1. Your auto policy only covers the limits contained theirin
  2. Your homeowners insurance will cover some of the damages incurred if you boat is parked on your property and may, or may not include theft or vandalism
  3. Your boat insurance does not extend to situations when your boat is being transported on land Now, here is the bad news.

6) Consider an umbrella policy

An addition to both your homeowners and car insurance policy, and umbrella policy will extend the limitations as discussed above and provide additional coverage, like personal injuries.Navigational restrictions: Having a boat may give you the freedom to go anywhere, and if your boat is large enough that you can take it beyond the immediate shore line of Florida, be aware that most policies will contain a navigational warranty. In other words, your policy may not cover the areas you wish to navigate to.

Final Thoughts

Owning a boat can be a lot of fun but with it comes specific responsibilities. Shopping for the right boat insurance coverage can be overwhelming due to the complexity of this particular insurance field. Make sure you talk to a real expert. If you haven't bought the ship of your dreams yet, ask questions. Be specific. Your agent will be able to recommend a coverage policy that will meet your needs.Be smart, listen to the advice of your agent. If you're new to boating, take a boating class and become a better, safer and well trained boater. A boating class may even qualify you for discount.Above all, stay safe and enjoy.