Boat Insurance Policies and Yacht Insurance Policies - The Two Most Critical Considerations

One of the key things to realise before embarking on insurance for your watercraft is to be clear about which type of policy you actually need. The way to differentiate between the two is actually fairly easy. A good rule of thumb is as follows:

Boat Insurance - Watercraft that are up to 26 feet in length

Yacht Insurance - Watercraft that are 27 feet and over in length

Once you have established which type you need (you will find that most boat insurance companies will offer both) then here are two important factors that you need to bear in mind before finally settling on which policy to get:

1/ Agreed Value vs Actual Cash Value Settlements - You want to be clear about this ahead of time, because an agreed value settlement is far more favourable to the boat owner, and an actual cash value settlement is much more favourable to the boat insurance company, because it factors in asset value when the loss, theft etc was ACTUALLY suffered.

In practice this is likely to give you a headache, because unless you are an actuary you are going to have a hard job knowing what the insurance would pay out at any particular point.

So, for a quiet life, and the sake of your wallet, you should always get an agreed value policy wherever possible.

2/ Deductible Amounts - Make sure that you are clear how much the deductible on the policy will be. This can vary much more than you might think both from policy to policy, but also depending on the type of accident that the boat suffers that requires you to seek a settlement.

For example, hull damage is likely to be a 3% deductible on a yacht, but windstorm damage is likely to be a totally different amount.

Make sure you know what they are.

The best way to proceed is to get yourself a boat insurance quote right now so that you can immediately get a feel for how much the policy will cost. In this way you will be better prepared, and can better gauge the differences between the policies.

Who Needs Umbrella Insurance? You Will Be Surprised!

Insurance by definition protects you against unforseen acts of man or nature---fire, floods, death and taxes. Yes, taxes----people who have large estates buy life insurance to pay for estate tax upon their death so their children and spouse do not have to make rash decisions to sell the business or assets to pay for estate duty.

But it is very important to consider another form of insurance not commonly in practice--Personal Umbrella Insurance Policy.

Personal umbrella insurance protects you against excess liability claims. Here is what it means. Your car, home and rental property all have specific liability insured---damage to property, theft, uninsured motorist etc. But one liability that is paramount in our litigious society is excess liability. That is where umbrella insurance protects you.

Let us say you rent your property to a tenant. There is a gas leak--thankfully it is detected in time and there is no blowup, but your tenant breathes fumes. He will definitely consider suing you beyond just the health cost and property damage if any. If you are found to be liable, and damages exceed your tenant property insurance, he can then come after your other assets, even in a civil case.

A friend had a fender bender---in fact, his car just nudged the other car in traffic. Both drivers got out, looked at their cars, agreed there was no need to inform police because there were no dents or marks on either car. My friend went home, thanking his stars NOT SO FAST! Two days later, he got a call from the other driver that she suffered neck pain, whiplash and was seeking treatment from expensive specialists. Again, lucky for my friend, his policy maximum limit was not breached for medical insurance. But what if it had? What if the neuro-surgeon had prescribed expensive diagnostics and treatment? My friend would be fighting the lawsuit and a large amount of damage claim which could only be satisfied using his personal savings, since the auto policy would have been exhausted.

Unfortunately we live in a society where lawyers, some of them not all, make a living chasing ambulance claims. This includes trauma, mental injury, incident impact and other claims that leave no physical evidence of damage, yet can cost you hundreds of thousands of dollars.

A good personal umbrella policy is one of the cheapest forms of insurance to protect against catastrophic damage claims and awards. They start covering you when your specific damage policies give up.

Some experts advise against personal umbrella policy. Their logic is, if the other party knows you have a large umbrella coverage, they are that much more incented to go after you even on frivolous charges. I disagree. Most attorneys who practice ambulance chasing act first, i.e. sue, then worry about how much they can collect. You do not want to risk your personal savings and assets being subject to such greed.

So how much insurance should you have. I suggest you add up the maximum coverages from all your policies. Then add up your gross assets. Multiply the total assets by 150%, deduct maximum coverage and if the result is a positive, that is the amount you should cover. Why 150%? Because over time your assets will grow, but your maximum coverages may not. You may also drop some policies.

Remember, when buying any insurance, cost while it is a factor should not be an overriding one. Instead look for reputable, A+ rated insurance companies and make sure your policy covers negligence.

Good luck.

Types of Property Insurance Coverage

There are Twelve types of Property Insurance coverage

Replacement cost coverage: Replacement cost coverage is the type of property insurance that will always make sure that the cost of your property assurance is being paid regardless of downfall or increasing of currency. Replacement cost coverage is made easy so that property insurance client, spend less money to get new same type of product that the assurance company does not consider to pay. Explosion Insurance: Explosion allowance coverage is a kind of insurance policy one needs to have, this kind of a insurance is designed to protect and cover the loss of property due to explosion. Fire Insurance: This is a type of property allowance that basically concentrated to damages caused by a fire. Fire assurance coverage provides the protection for damage caused by a fire into your property. Aircraft Insurance Coverage: Aircraft allowance coverage is kind of insurance that deals or designed to protect your property in case the Aircraft crush on your property. Home Insurance: Home provision covers both property and Liability,using single premium which covers for all risks. Home Insurance is also known as multiple line insurance coverage, it covers private homes also bond's various types of personal Insurance. Theft Insurance: Theft insurance is the kind of property coverage that covers the damage of the property due to burglary, theft etc. Riot/Civil commotion: This is a type of property coverage that protect or covers your property from the damage caused by the Riot. It covers the cost caused in violent disturbance caused by four or more people in your property. types of provision include an aspect of liability coverage. For example, a homeowner's insurance policy will normally include liability coverage which protects the insured in the event of a claim brought by someone who slips and falls on the property; automobile insurance also includes an aspect of liability provision that indemninate against the harm that a crashing car can cause to others' lives, health, or property. Volcanic Eruption: Volcanic Eruption is a kind of property provision that covers your property against the explosion caused by Volcanic Eruption. Hail Insurance: Hail Insurance coverage is a kind of insurance cover that protect your property against losses due from hail. Hurricanes: Hurricanes Insured coverage is the kind of insurance that is designed to cover or protect your property against the losses caused by hurricane Flood Insurance: Flood Insurance coverage is a kind of property insurance made to cover your property from the damage caused by floods into your property. Earthquake Insurance : This is a kind of property allowance that is design to cover the damage that has been caused by an earthquake to your property. Rates differ rates are determined on the location you are situated in. Homes made of wood have cheaper rates than Homes made of brick.