Whether you already own a sailboat or are thinking about purchasing one, it’s hard to go wrong with getting sailboat insurance.
The truth is, no one thinks they’ll get into a boating accident. Sure, practicing boating safety is a great help in this regard. However, there’s always a chance the trouble could find you.
To illustrate our point, here are the most recent boating statistics. Annually, there are almost 4,500 boating accidents in the United States alone. They result in more than 700 deaths and close to $50 million of property damages.
The only way to be truly safe on the sea is to protect your property and liability obligations. Here are four things you should consider before insuring your sailboat.
In a way, sailboat insurance is a lot like auto insurance.
The main similarity between them is that the cost of your insurance premium will depend on the market value of your property. The more expensive your sailboat is, the higher the insurance premium will be.
Most of the time, the premium will set you back 1% to 2% of the sailboat’s market value. If you live in a hurricane-prone zone, it may cost you more than that.
There are several other factors that influence the cost of boat insurance. These include boat age, condition, length, speed, and more.
Just like there are many types of sailboats, there are many types of insurance.
For example, hull insurance covers any damage caused to and by your sailboat. This includes the costs of boat repairs. In case of total loss, you will be paid the agreed value of your sailboat.
All-risks insurance covers any risks that are not excluded in your insurance policy. These types of risks include freezing, ice damage, pollution liability, and more.
3. Available Discounts
The best way to get value on an insurance policy is to use the available discounts.
Many companies offer discounts to sailboat owners who have a boater education certificate. You may also be eligible for a discount if you’re storing your sailboat under a shed or similar covered structure.
In some cases, you’ll have to put some effort into getting a discount. For instance, you may qualify for one by letting the Coast Guard Auxiliary inspect your sailboat.
4. Special Cases
Every sailboat owner should know when their sailboat is not covered by their insurance policy.
Let’s say your sailboat policy specifies that your boat should be stored between December and February. If you take your sailboat out for a ride during that period, you won’t be protected against accidents.
Also, you may occasionally find yourself using a car to tow your sailboat to the water. In this case, the sailboat will be covered by your auto insurance policy. If you want to be on the safe side, you can add a rider to cover any towed items.
Buying Sailboat Insurance
Think you’re ready to purchase your own sailboat insurance policy? Not sure which types of insurance to go for? Want to know more about the various aspects of watercraft insurance?
We at Amistad Insurance Services can help you out! For a free consultation, simply contact us right here. We’ll get back to you as soon as possible.