When an insurable issue comes to light, it’s important to have good, comprehensive boat insurance in California. It’s often best to rely on a broker that specializes in marine policies, since he or she can determine the type of policy best designed to suit your needs. They understand that routine homeowners policies limits can be restrictive (or won’t necessarily cover marine-specific risks, such as pollution or environmental damage, which might otherwise be quite costly to you, as an owner.
While some homeowners policies include perfectly good coverage for smaller boats and motors, most homeowners riders aren’t adequate for any larger vessel that you may own, so your agent can help you to decide exactly what type of coverage you require and specifically the type of dangers that need to be covered.
Available coverage options
There are two basic types of boat insurance available: agreed value and actual cash value. What sets them apart is the way that depreciation is handled. An “agreed value” policy covers the boat based on its value at the time that the policy was written. It will generally cost you more up front and there is no provision for depreciation for a total loss of your boat, although some partial losses may be depreciated based on the language in the policy.
“Actual cash value” policies will cost less up front, but you must also factor in depreciation, which means the policy will only pay up to the actual cash value of the boat at the time it’s declared a total or partial loss.As the boat ages, many insurers will insist on your changing to an actual cash value policy, which often gives a substantial savings.
An “all risk” policy, on the other hand, might offer the best protection, since all risk means that any risk not specifically omitted in the policy will be covered. However, an all risk policy does not cover every type of possible loss. Typical exclusions include:
- Wear and tear
- Manufacturers defects
- Design defects, and
- Icing, and freezing
Ask your agent about boat insurance in California. It’s important to have whenever you experience any damage, or are responsible for any damage to the property of others.