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from: So you have a boat or are thinking of buying one. When you are figuring out the total cost don’t forget to buy power boat insurance. Sometimes, avoiding this purchase is impossible to as your finance company will demand you have it, especially if you use it as collateral.

You should always purchase power boat insurance. It is a necessary cost of owning a power boat and the responsible thing to do. It can, in the long or even short run, save you money.
The world of power boat insurance is a complicated one. It is basically an unregulated industry varying from state to state. An incomplete understanding can lead to serious mistakes avoidable by devoting time to examining various aspects of you and your boat and researching the company.
Be aware! Not all boats are created equal to an insurance company. Power boat insurance can range in accordance with the materials of the boat – wooden boats increasing rates, and type. It should be no surprise that racing power boats command a high insurance rate.
It is also necessary to check out the company and its records. This can be done by checking out the company’s credentials with state agencies or visiting your local Better Business Bureau. If you already have a car or house policy with a company, find out their power boat insurance rates and policies.
To help you decide what policy to take and which power boat insurance company to consider, read and understand their policy. Does it offer comprehensive coverage? After a hurricane or tornado, many boats have been abandoned by their owners because their policy did not provide them with even the money to salvage their boats.
Realize there are various degrees of coverage and be sure to ask questions on what is and what is not covered. If you have a fuel spill are you covered? If you sail off shore, are you covered? Does your policy allow for third person liability coverage? If this person drives your boat and has an accident who will pay for the damages to the boat, to another boat or object and to persons of those involved? Can the power boat insurance company you are asking provide concrete answers? Is it evasive? Listen carefully and consider what company provides the best coverage
Another important factor in power boat insurance is figuring out the value of your boat. An insurance company can provide you with a policy directed towards the agreed-upon true value or the actual cash value. The Agreed value covers replacement of your power boat. The Actual Cash value considers the boat in terms of a deprecating factor of around 10%. In most cases, the Agreed Value is the best policy.
These are some of the questions to consider when purchasing power boat insurance. There are others that will become obvious to you as you research and consider you and your boats particular needs.

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