Understanding Coverage Needs and Policy Options for Your Watercraft
Although many types of coverage are provided by a commercial boat insurance policy, there are two primary or basic coverages that should always be considered. First, theres liability coverage, often called protection and indemnity coverage. This provides coverage for legal obligations to third parties. Your legal liability typically arises from bodily injury, loss of life, or damage to another’s vessel or other property as a result of operation of your vessel.
Hull coverage, equally vital, is the part of a commercial boat policy that pays for physical damage to your vessel and should be purchased on an all-risk basis, meaning that if the cause of the loss is not excluded under the policy, it shall be covered. The coverage will provide protection for the hull, attached equipment, (and unattached equipment) and personal belongings. It’s important to note that the owner is responsible for maintaining the vessel, which means normal wear and tear is typically excluded from your yacht insurance in Newport Beach. If you have further questions then you should seek the advice of an agent.
Terms of coverage should be specific to your needs
Before buying yacht insurance in Newport Beach you should make sure you understand just what the policy covers. Not all insurance is the same and the coverage you purchase may only apply to certain terms and conditions. For example, most boat policies require territorial limits of coverage, and the policies include a warranty of navigation.
That is to say, as the boat owner, you agree as part of the insurance contract, to stay within a certain geographical area with your yacht in order for the contract to be valid. You can purchase insurance that will allow you to travel outside of any specific area, but its important to be sure you have coverage at all times, both on land and in the water.
Don’t forget that you also need to properly maintain your trailer. Its subject to a lot of wear and tear from the amount of use you’re likely to get out of it, especially from exposure to salt water. Most boat owners have to be concerned with issues like frozen brakes, flat tires, and badly worn bearings. The majority of boat policies don’t include coverage for a trailer, but this is certainly something that can be added.