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It is important to protect your boat. In the marine, boat insurance is common since this is also a vehicle. It helps you to get insured when certain conditions of the boat occur, so you will not spend a lot of money. However, what does boat insurance not cover and cover?
The coverage of boat insurance will be different depending on the companies, the type of boat, and the level of your boat. The insurance company will check the boat first before offering the right plan. Here is some information about the coverage and limitations under boat insurance.
What Does Boat Insurance Not Cover
1. When the boat is in unseaworthy condition
What kind of condition is there when the boat is in the category of unseaworthy? Many circumstances make the boat not eligible to sail. Some parts of the boat have become rusty, and those parts cannot be replaced.
The design of the boat is also inadequate though the boat is brand new. The insurance company usually refuses to insure the boat during enrollment. The boat is already unsafe to sail, so this boat will not get covered by the insurance when it is sailing.
2. Wear and tear condition
The depreciation of a boat has happened over the years. The boat will not have the same function as a brand-new one. Generally, the condition is called wear and tear. The wear and tear is common because of the waves that hit the boat and the wind that hits the sail until it is torn.
3. Corrosion
Corrosion is a serious case, and it is part of what does boat insurance not cover. Corrosion is noticeable by the rust in some crucial parts because of the salinity level of seawater. Corrosion changes how the boat will work, and be balanced on the sea while sailing, so it will not get covered.
The potential for danger on the boat is high. Once a particular part found to have corrosion, the insurance company will deny the claim immediately. Corrosion is also hard to fix when the boa owner has painted it with antifouling.
4. Mechanical breakdown
Mechanical breakdown is also the case where it will not get insured. It is excluded from the policy, and the insurance company offers additional coverage. You may pay less over time because of the age of the boat, and its functions have been lower.
5. Personal accident
Unfortunately, this case is an inclusion in what does boat insurance not cover. The insurance company will deny this case to get insured. Damage and loss surrounding the accident are not covered as well.
6. DUI case
DUI cases are serious everywhere, even on the board. The accident because of DUI by sailors, crews, and other people who are responsible for the boat sailing will not be covered. Insurance companies will work with the authorities to check alcohol levels in the crews.
7. Outsider area
When something happens outside the areas which are mentioned in the policy, you cannot submit the claim to the insurance company. They will deny all the claims. You can ask the agent first about the policies of areas that are under the coverage.
8. Theft
Losing a property on the board can only be covered if it is placed in a locked compartment.
Restriction of Boat Insurance
1. Limit
There is limited coverage in boat insurance. It still depends on the insurance company you choose, so you have to pick it carefully to get a good service. The range of boat insurance varies in price and coverage. The insurance company considers the size, age, and crew to determine the plan.
2. Exclusions
Before buying boat insurance to protect your boat, you have to know the rights and exclusions under the policy. Usually, the exclusions are some properties. Damage and loss of property will be restricted, so they will not get insured under the policy of boat insurance.
3. The excess
The company will not pay the excess when the damage has reached the limit. The rest of the cost will be paid by the policyholder using their own money. The policyholder also cannot claim the excess if the damage has not reached the limit. Ask the agent for further information about the excess.
4. Personal property
Personal property that got lost in a boat is restricted from getting insured by the insurance company. It only applies if the property is mentioned under the policy specifically. The value of the property might be mentioned and they get insured up to the limit with certain conditions.
Ask your insurance company about what does boat insurance not cover and cover, so you can be more careful. You do not waste your time as well to submit the claim where the damage is never under your policy. Check the limitations and your rights as a policyholder of boat insurance.
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