Press release from BoatUS

Getting A Handle On Boat Insurance: Five Buying Tips

Understanding boat insurance can be confusing. But the smart boater can
make the right insurance choice with these "Top Five Tips for Buying
Boat Insurance" from BoatU.S., the nation's largest recreational boat
owners association:

#5 Know thy insurer: Boat insurance can be "added on" to a
homeowner's policy or purchased from an independent insurance agent or
directly from a marine insurance specialist. Buying a policy through a
reputable agent or directly from a marine insurance specialist is the
best way to go. "Adding on" to your homeowner's policy may be
convenient, but when there's a claim you will appreciate a company that
knows more about boats than homes. Homeowner's policies often limit or
don't adequately provide some of the marine related coverages like
salvage or wreck removal.

Ask experienced boating friends for their insurance recommendations and
check on the insurance "carrier," - the company that will actually be
providing your coverage - at http://www.ambest.com/ratings. A.M. Best
ratings are the industry's benchmark for assessing an insurer's
financial strength; look for an "A" rating (excellent) or better.
State insurance regulatory agencies are also a good reference and can
be found online.

#4 Agreed Value vs. Actual Cash Value: These are the two main choices
for boat insurance and depreciation is what sets them apart.

An "agreed value" policy costs more up front but it potentially pays
more - it will cover the stated value of the policy in the event of a
total loss. For example, a total loss on a $50,000 agreed value policy
would pay you $50,000. More importantly, with a partial loss an agreed
value policy replaces damaged boating equipment on a "new for old"
basis with no depreciation. Hence, a claim for a stolen four-year-old
GPS would get you a new, comparable replacement GPS. Some repairs,
however, are subject to depreciation, such as paint, canvas and aging
machinery.

"Actual Cash Value" policies cost less but only pay up to the actual
cash value at the time the boat or property was lost - depreciation is
factored in on all losses. Actual Cash Value policies are better
suited to less expensive boats or to situations where you are more
concerned with liability protection and defense against lawsuits than
you are with boat damage.

#3 Know the salvage truth: If the worst happens and your boat needs to
be salvaged, you want to ensure that your policy covers salvage costs
up to 100% of your boat's insured value. If it covers anything less,
you could end up paying salvage costs out of your own pocket.
Unfortunately many homeowners and some marine insurer policies limit
salvage coverage to a percentage of the boat's total value.

For example, if you have chosen a $50,000 "agreed value" policy,
you want salvage coverage up to the same amount as the boat's agreed
value - $50,000. You should not have to subtract these "salvage"
dollars, or the policy's deductible, from the total amount available to
fix the damage. An actual cash value policy should have the same, with
the dollar salvage limit being equal to, but separate from, the actual
value of the vessel.

Some policies also have "hurricane deductibles" - a significantly
higher deductible for damage to your boat caused by a hurricane. Be
sure that this dollar amount is acceptable to you.

#2 Speak to me in a language I understand: Don't treat boat insurance
like other insurance. Make sure you understand exactly what is covered
as well as what isn't covered. If the policy doesn't make sense, ask
for an explanation in laymen's terms.

#1 One size doesn't fit all: A bass boater may need fishing gear and
tournament coverage as well as "cruising extensions" if they trailer
their boat far from home. If you're in the hurricane belt, hurricane
haul-out coverage makes the decision to safely store your boat ashore
that much easier as a storm approaches. If you have a fuel tank
aboard, you should be concerned about fuel spill containment and
clean-up coverage along with 24-hour assistance to get it done
immediately, especially in light of today's environmental protection
laws. A good insurer will tailor your coverage to fit your needs, so
there will be no surprises if the unexpected happens.

On 11 May 2005 07:31:32 -0700, wrote:

Press release from BoatUS

Getting A Handle On Boat Insurance: Five Buying Tips

Understanding boat insurance can be confusing. But the smart boater can
make the right insurance choice with these "Top Five Tips for Buying
Boat Insurance" from BoatU.S., the nation's largest recreational boat
owners association:
I wrote the federal guidlines for marine insurance. I made so much
money, I bought a house with a 3 mile driveway.