If you have just purchased a boat, you may think of approaching boat insurance in the same way that you buy insurance for your car. While there are some similarities, there are some mistakes that you need to avoid when you're buying boat insurance. Here are some examples of mistakes that you may make as a new boat buyer:
Thinking Your Boat is Covered on Land
Many boat insurance policies only cover the boat when it is in the water. Many boat owners are not aware of this information, and believe that they have insurance protection while on the road. Your boat may be covered during transport by your auto policy, if you hook the boat up to your car, but it is important that you call your auto insurance provider and find out for sure.
If your boat is sitting on cement blocks at your home, you need to find out if your homeowner's insurance policy will cover the boat. You may need to get what is called a "watercraft endorsement" added to your policy to be sure that your boat is protected.
Not Knowing Your Lay-Up Dates
If you don't plan to use your boat during a period of time, such as winter, your boat insurance premiums will be much lower during that period. In some cases, you won't even have to pay for boat insurance during those so-called "lay-up" dates. However, that means that your boat is not covered during that period.
If you decide to take your boat out on a mild winter day, your boat may be uninsured during that trip, offering you no protection if something goes wrong. Know what your lay-up dates are, and be sure that you don't use the boat during that time.
Ignoring Salvage and Hurricane Coverage
In an effort to save money on a boat insurance policy, you may overlook salvage and hurricane coverage, or simply take whatever is offered. If something happens and your boat needs to be salvaged, you need to be certain that any policy you're considering offers as much coverage as possible. You need to do everything you can to avoid having to pay for salvage costs all by yourself, as it can be expensive.
It is also a good idea to check the hurricane deductible. If you live in a hurricane prone area, you need to be sure that the deductible reflects that, so that you don't find yourself in a financial hardship because of your boat when a hurricane strikes.
After reading this article, hopefully you have a better understanding of how to approach a boat insurance policy. Avoid the mistakes above, so that your boat insurance policy is one that works well for you. To learn more, contact a company like SkiSafe.