Watercraft and Boat Insurance In Massachusetts
Watercraft and Boat Insurance in Massachusetts
We understand that when boating season comes around a boat owner’s first thought is to send their watercraft or boat into the water. The last thing they want to think about is a watercraft or boat insurance policy, however, no matter how much you prepare for accidents, without a boat insurance policy you are risking your safety, the passenger’s safety and the value of your boat. Although there is no legal requirement for a watercraft or boat insurance policy, it should be the first thing on your mind.
Protecting Watercraft and Boat Owners in Massachusetts
Watercraft and Boat Insurance Important Terminology
Agreed Value: The Agreed Value is the fair market value of the vessel that is agreed upon between the insured and the insurance carrier. Under Agreed Value policies, if there is a total loss, then the full agreed value is paid without any depreciation. When there is a partial loss, the company will replace old equipment with new to bring the vessel back to its' condition prior to the loss.
Deductible: The deductible is the portion of a loss that is the responsibility of the insured. There is an inverse relationship between deductible and premium. The higher the deductible, the lower the premium. The hull deductible is typically 1% of the hull value. Credits up to fifteen percent of the hull premium are available for higher deductibles. Lower deductibles are assigned for specific equipment such as personal property, electronics, and dinghies. These lower deductibles are separated from the hull deductible, and therefore, reduce your exposure to a loss.
Exclusions: Typical broad exclusions include dishonest, intentional, and illegal acts, fraud, wars, seizures, and nuclear radiation. The marine exclusions include wear and tear, deterioration, corrosion, osmosis, electrolysis, or design defects. Check with your agent for a full list of exclusions that apply to your specific policy.
Lay-up Warranty: A lay-up period defines the months that the vessel is out of action. During the lay-up period the vessel is out of commission and is not used for any boating activities. In New England, the typical lay-up period is from November to April. Longer lay-up periods are available.
Medical payments: Provides coverage for medical, ambulance, and hospital costs should someone be injured while boarding, leaving, or upon your vessel.
Navigational Warranty: The policy defines the navigational limitations by a navigational warranty that specifies dates and geographic locations. For instance, a navigational warranty may limit navigation north of Cape Hatteras, North Carolina during the hurricane months of June 1st to November 1st.