Home - insurance - 4 Insurance Mistakes First-time Boat Buyers Should Avoid
4 insurance mistakes first-time boat buyers should avoid

4 insurance mistakes first-time boat buyers should avoid

Owning a boat can be an exciting experience. Whatever the reason for buying a boat—adventure, transportation, or leisure—a lot of thought and consideration need to go into the decision. After all, a boat can be quite expensive and prone to risks. So, first-time boat buyers need to do their research to choose the right boat and also maintain it. They also need to choose the right insurance policy to minimize the risks of boat ownership.

1. Assuming existing insurance will suffice
Most homeowners’ and renters’ insurance policies offer some coverage for boats. But, the coverage has many limitations. For instance, a home insurance policy offers coverage of around $1,500 for damages to a boat. Apart from this, some policies offer liability coverage, but only if the boat meets specific criteria. For example, the boat must be under 26 feet long, and the motor must be under 75 horsepower. So, if any other boat is destroyed or damaged, one will not be able to fully recover the entire cost of the boat. Besides, most home and renters’ insurance policies do not offer coverage for certain kinds of damage, such as sinking, collision, and disablement. Also, these policies will have higher deductibles compared to dedicated boat insurance. So one will end up paying a lot of money out of pocket before the insurance provider starts to pay for the loss. This is why buying a dedicated boat insurance policy is a better move, as it can cover all the risks that are associated with boat ownership. These policies also have better coverage and provide complete protection against different types of damages that are not covered by homeowners’ or renters’ insurance policies.

2. Not considering requirements
Buying a boat for the first time can require careful consideration of many factors. Here, it can be easy to either forget about the boat insurance or ignore it. Or, many first-time buyers end up buying an insurance plan that does not work for them. To avoid this mistake, it is crucial to dedicate some time and resources to assessing insurance requirements when buying a new policy. Depending on the preferences, one may want to go for comprehensive coverage that protects the watercraft against damages caused by events outside of one’s control. One may also want to get liability coverage to pay for damages or injuries one causes while on the water.

3. Not insuring for agreed value
Typically, there are three ways to value a boat for insurance. One can insure the boat for its actual cash value, replacement cost, or agreed value. Choosing the wrong option can make one lose a lot of money.

Actual cash value: This refers to the current market value of the boat minus depreciation. Insuring a boat for ACV allows the insurance provider to reimburse the current depreciated value of the boat. For example, the cost of a boat is around $100,000, and it has depreciated by 25%, the estimated ACV would be about $75,000. So, if the boat is destroyed or damaged, the ACV insurance policy will only pay $75,000, even if the cost of repairing or replacing the boat is higher.

Replacement cost: This is often considered a better option than ACV. As the name suggests, replacement cost is the cost of buying a new boat of similar quality and model. So, when insuring a boat for its replacement cost, the provider would typically pay the entire cost to replace the boat, even if this cost is more than the overall ACV of the boat. However, here, one does not get to decide which boat they want to purchase to replace the existing boat. The insurance provider and the policy terms will dictate the make and model of the new boat. Another drawback is that the provider can place a ceiling on the amount by which the current value can exceed the policy coverage amount. So, one may not get the full replacement cost if the price of the new boat exceeds the limit set for reimbursement.

Agreed value: To avoid dealing with the limitations associated with insuring the boat for replacement cost and ACV, first-time boat buyers may consider going with the agreed value. This is because insuring for agreed value can offer the maximum protection and coverae. Here, one can discuss with the provider and set the value of the boat before signing up for the insurance plan. So if the the boat is completely damaged in the future, one will get the agreed value in return. One also does not have to worry about depreciation while setting the agreed value.

4. Providing incorrect information
Not giving the right mooring and storage information for a boat can have a significant effect on the insurance rates. Most boat insurance providers require information regarding where the boat is regularly docked, used, and stored. These locations directly impact the cost of the policy. If incorrect information is provided, the provider will be unable to accurately assess the risk associated with insuring the boat. So, there is a high chance that the insurance rate will be higher. It also increases the risk of policy cancellation.

Latest Articles

5 smart ways of using tablet computers
Tablets

5 smart ways of using tablet computers

You see tablet computers everywhere. More and more people are now moving toward tablets in offices, coffee shops, homes, and even schools. This is because they offer more power and uses than a smartphone and better portability than a desktop or even a laptop. Tablets have many more uses than simply checking your emails or browsing social media. Here are some interesting ways to find more uses for your tablet computer: Second screen Some people like to work on two screens at a time due to the demand of their work. This also enhances productivity and cuts down on time. It is easy to mirror your Android to another Android or even a computer. To use your tablet as an extended display, you need to install an application on your computer and connect the tablet to it using a USB cable or Wi-Fi. Some of the best app options to do this include Spacedesk, Google Remote Desktop, iDisplay, Duet Display, etc. As a remote to control electronics Tablet computers can be easily used to control your electronics. A tablet is larger than a remote and much easier to find and operate with better features. You can control your PC and television with it. It can also dim your home lights, open your garage door, and operate your smart fridge and washing machine. For instance, if you have a Sony Smart TV, you can use the TV Sideview application for your Apple and Android systems. E-Reader If you are an avid reader and have an old tablet, you don’t need to purchase a new e-reader. Your tablet can easily be used as an e-reader to browse your favorite books, magazines, comic strips, and even news applications. Since tablet screens have more glare, we suggest getting an anti-glare film on the screen.
Ignore these 8 foods when diagnosed with hyperkalemia
health

Ignore these 8 foods when diagnosed with hyperkalemia

Potassium is an essential nutrient that allows your body to function optimally. A meal plan rich in potassium allows proper nerve function and regulates your heartbeat. However, certain conditions such as kidney diseases and consuming food rich in potassium excessively may increase its levels in your bloodstream leading to a condition known as hyperkalemia . Let’s look at foods you should limit to keep your potassium within normal levels. Bananas The first food that comes to mind when people think of potassium sources is bananas. One medium-sized banana contains almost 422 mg of potassium. Though it would take a lot of bananas to cause an overdose of potassium, if you are also eating other foods rich in potassium, it will lead to excessive potassium levels in your blood, which in turn, will trigger hyperkalemia . Tomato Sauce and Paste Raw tomatoes contain a decent amount of potassium. One medium tomato has about 292 mg of potassium. Concentrated forms of tomatoes, such as sauces, salsa, paste, puree, etc., contain even higher amounts of potassium. For instance, a small cup of tomato sauce contains almost 728 mg potassium. So, it is advised to skip tomato sauce and opt for alternatives such as basil or roasted red peppers. Milk If you have been advised a low potassium meal plan, you must avoid milk or at least its consumption needs to be reduced. A cup of whole milk contains around 350 mg of potassium. The lower the amount of fat in milk, the higher the potassium content. While you may have a small serving of milk daily, it should not exceed 300 ml. It means avoiding milk and dairy products such as buttermilk, yogurt, milk-based sweets, ice creams, and other desserts. Oranges and Orange Juice Oranges have a very high potassium content and are best avoided if diagnosed with hyperkalemia .
7 mistakes to avoid when buying a new computer
Tech

7 mistakes to avoid when buying a new computer

With all the options of computer brands available in the market today, you might think it is effortless to pick up one. However, with so many choices, it can get tricky as buying a computer is a hefty, long-term investment. That’s why you should be aware of some common buying mistakes people would make while purchasing this device. And so, here are a few things to avoid before you invest in a computer : Buying without knowing your needs Never buy a computer just because everyone is buying it or there’s a lot of hype around it. While you may want to prioritize aesthetics and popularity, you need to identify your need for a computer and its software . Make a list of all the features that you would need and get the computer configured accordingly. Unfamiliar with different software programs Not knowing the right software may cost you heavily. Purchasing expensive software with a long list of features may not be the best thing to do if half of these features don’t even apply to your work. Next, know how to install and use the software. You also need to know if the software is protected against bugs with an antivirus program and consider the after-sale service of the software. Not considering different operating systems There are four primary operating systems you should know – Microsoft, Apple, Google, and Linux. While technology has made it easier to switch between these operating systems, you may often find one or more applications not working on alternative systems. So, if you have an expensive software installed, check with your developer if it will be compatible with the OS you plan to get. Not accounting for other computer costs A common mistake made by many while purchasing a computer is not accounting for other costs that are part of the bundle.