Posted by SkiSafe 0
When buying your boat, one of your top priorities should be to buy a boat insurance policy, even before you take delivery. When speaking to an underwriter or getting your online boat insurance quote, even veteran boaters may not be aware of some basic but important boat insurance terminology. SkiSafe is here to help! Read through our overview of boat insurance terms and definitions. Let us know if there are any others you think should be included!
- Adjuster: Your representative in the boat insurance claims department. When filing a claim, a licensed adjuster will record the facts of the incident and the information needed to settle your claim as quickly as possible. The adjuster will identify and let you know your coverage so you can plan for repairs and get right back on the water.
- Agreed Value: A coverage option where the value of your craft is agreed and locked in. If your craft sustained a covered total loss, a SkiSafe policy with agreed value will pay you that amount.
- “All-Risk”: An important term/condition that provides coverage for any loss not excluded by your policy. This is broader and more protective than a Named Perils policy. SkiSafe’s “all-risk” policy includes coverage for losses including fire, collision, storms, trailering, theft, and much more.
- Bodily Injury and Property Damage Liability: If you are found legally liable for the injuries to a passenger or another boater, or for damage to their property, this coverage will help pay for those associated costs that you may be legally obligated for.
- Coverage Limit: The maximum amount your policy covers for a particular type of loss.
- Deductible: The amount that you as policyholder agree to self-insure against certain losses. There is no deductible on bodily injury and property damage liability or legal expenses.
- Lay-Up Period: When your boat is not in use in the water, most likely during the winter months (make sure your policy still covers you while your boat is laid-up). You should be eligible for a sizable discount for electing to have a lay-up period.
- Liability: What the policyholder is legally obligated for.
- Medical Payments: Coverage for voluntary medical payments to a third party arising from the use or ownership of your craft whether you are legally liable or not. This is provided by the insurance company up to the specific limit of your policy.
- Navigational Limits: Your policy specifies the navigation territory. For example, if you are planning to take your boat to the Bahamas, navigating in these waters may not be covered under your policy. You may call your insurance company to endorse your policy for a trip to areas outside your normal navigation area.
- Policy Declaration Page: A document that will outline most of the specifics of your policy including limits and deductibles.
- Policyholder: The Named Insured on an insurance policy.
- Replacement Cost: If you experience a total loss within a certain timeframe, SkiSafe may replace your craft with a brand new version of the same boat, perhaps even more than what you paid and insured it for.
- Towing and Roadside Assistance: Coverage that will reimburse you for towing costs on the water or on land.
- Underwriter: The person who evaluates the risk, agrees to issue the boat insurance policy, and assists you in making changes or answering your questions about options and discounts.