Sailing can be a year-round activity, but you need the right boat insurance coverage wherever you go. Some areas can have unexpected storms in any given season. Ideally, your boat insurance will cover damage from storms, lightning, hail, and floods. But you have to read the policy carefully since different providers offer their own precise coverage.
Will Boat Insurance Cover Damage from a Storm?
The specific wording of a boat insurance policy is what determines your boat insurance coverage. You should not assume that a boat insurance policy covers what you think it should without reading it. Just like with an auto or home policy, you can buy a standard boat insurance policy that offers limited coverage, or you can add your own customize coverage extensions.
A standard plan will likely pay for damage from a hurricane or named storm, but it still comes down to the policy’s details. The widest boat coverage can typically be found in a comprehensive plan with named storm coverage. Your insurer may ask to see your plan of precautions if you are ever trapped on your vessel in a tropical storm. Without making such preparation, you may pay a higher insurance rate.
Common Weather-Related Coverage Options
Due to the various weather risks involving boating, here are different types of boat insurance plans to consider:
- Named storm coverage – Your insurer pays for damage caused by hurricanes named by the National Weather Service, as well as other types of storms.
- Flood coverage – Since damage caused by a flood may differ from damage caused by a storm, you may need separate coverage for certain types of floods.
- Freeze coverage – No matter where you store your boat, it can be exposed to freezing weather in winter. This inexpensive coverage pays for damage to your boat caused by freezing temperatures.
- Wind and hail coverage – Your boat’s structure and equipment within it will be covered for damage from strong wind and hail, which may result from a hurricane or tornado.
Limits and Deductibles
Standard boat insurance has coverage limits and deductibles to consider. You can adjust your deductible, which is what you pay when you file a claim, so that you can tap into coverage that pays for repairs. Your deductible amount is a small percentage compared with what the policy pays. The higher your deductible amount, the lower your monthly premium.
Boat Insurance Coverage Based on Agreed Value or Actual Cash Value
Know the difference between what insurers call “agreed value” and “actual cash value.” The former is closer to the boat’s value at the time you purchased your insurance, while the latter reflects closer to the current market value, which is the boat’s original value minus depreciation.
Other tips to Protect Yourself from Storm-Related Expenses
- Invest in a disaster supply kit
- Be clear on what your policy says about named storms
- Register with a local area alert system
Cover Your Boat Against Storm with Jack Stone Insurance Agency
If you want answers to boat insurance coverage questions, our team is ready to help. Contact our experts at Jack Stone Insurance Agency today to get started on a customized boat insurance plan that suits your needs.