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Success F inan ce
Most people think of a boat insurance policy as a straightforward, all-encompassing document and that one
policy is pretty much like another…only the rates are different. Wrong, wrong, wrong…
T E X T BY SA N DY L I N D S E Y
7. Consequential Damage: Don’t just
assume that everything — sinking, fire
and more — is covered. Also, check if
your policy covers salvage. Many don’t.
Popular Update: A clause that is
becoming much more common lately
is one that involves the exclusion of
any alcohol-related incidents.
2. Navigation Limits: Beware of
going outside your agreed-upon
territory or you will not be covered.
This usually applies to yachts and larger boats.
Potential Payout: The declaration
pages of two policies may show the
same amounts but there is a large
difference between “agreed value” and “actual
Many carriers will deny a claim if
your boat is unseaworthy or deferred
maintenance led to the claim, such as in the
case of sinking at the dock.
46 Underage Operators: Just because
your 12-year-old can “hold the wheel just
for a minute” doesn’t mean they should.
Age requirements vary from state to state.
Dockage/Storage: If you move your
boat, you must inform the insurance
company. Location plays a significant
part in insurance calculations, even if you
don’t move it far.
8. Liveaboard Coverage: Some
companies charge extra for it it,
some don’t, and in some cases it’s not
allowed at all.
9. Almost Done: Lastly, ask your
agent to play around with the value
of the boat, medical coverages, etc. A
small tweak to the policy can often mean a
10. Get Rewarded: Better
companies give credit for not
having claims with a reduced
rate or lowered deductible. Don’t forget to ask
over the coming years.