The insurance approach for covering boats and boating property is quite similar to what is used to protect cars and homes. Essentially insurance is offered on a package basis, meaning that there is coverage for physical property as well as protection against the legal and financial consequences of injuring others or damaging property that belongs to others.
Property Coverage - Typically a boatowners policy covers:
Items and situations that aren’t covered include boating property that is used in business activity, losses that involve races or competitions (an exception is made for sailboats) and boats that are used, full-time, as residences.
Liability Coverage - Besides protecting boating property, a boatowners policy also responds to claims or lawsuits caused when another person is injured, and /or when another person’s property is damaged or destroyed. An example would be a collision where the owner of a large speedboat collides with a person on a jet ski, seriously injuring the rider and demolishing the jet ski. The policy would handle both portions of such a loss. The liability portion would also provide a legal defense against lawsuits.
Another important coverage under the liability section is medical payments. This provides reimbursement for, typically, emergency or immediate medical treatment expense. Consider a person who slips on a boat deck and needs transportation to an emergency for treatment of a broken bone or concussion. Such costs would qualify under medical payments.
As is the case with property coverage, there are liability situations that are NOT covered by a boatowners policy, including losses that involve business activity, transmission of communicable disease, unauthorized operation of boating property, intentional acts, and criminal activity.
Boating property is a substantial investment and boatowners coverage is an efficient, affordable way to guard against accidental losses.
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The Need for Rental Reimbursment
In most instances, carrying both adequate liability and physical damage coverage on your vehicle will be enough protection in the aftermath of an accident. However, be sure that you don’t overlook Rental Reimbursement, as it is typically only offered as an option.
An accident disables your car. Well, that happens. Your insurance company arranges for it to be repaired. Okay, that’s what you hoped would happen. Now you don’t have a car until it is back from being repaired or replaced. Hmm, hadn’t thought about that.
Well, let’s think about it now. You just may be fortunate enough that temporary loss of a car is merely an inconvenience. You can just do without one for a while. However, that’s not likely. If you have a car, you have multiple reasons for its use. You have to commute for work, you go on trips, you take family members to school, recreational activities, you go shopping for clothes, groceries, you have to pick up dry cleaning….the list goes on. Even if you have access to public transportation; it may be inadequate for your demands for mobility. In other words, it may be fine for a work commute, but not for non-work and weekend needs. Even the best mass transit system will mean extra time and inconvenience.
The option that likely best meets your needs is rental reimbursement coverage. In most circumstances, coverage is quite affordable. Minimally rental reimbursement pays a daily and aggregate amount to assist with the cost of renting a vehicle during the time yours is unavailable. A common coverage situation is to pay, say up to $20 a day for a total of 30 days ($600). Many companies also have offer options to increase the daily and aggregate amounts, such as $30 daily/$900 aggregate.
The option is well worth considering since few would want to have to deal with an additional expense after an accident. There are other benefits often available with rental reimbursement coverage. Many insurance companies make deals with different auto rental companies so that daily rates are either under or close to the amount of protection they provide. The deals often include expedited service, such as reserving a car on your behalf. Another advantage is that some insurers may offer rental reimbursement in a package with other, handy coverages such as roadside assistance.
If you wish to make sure your insurance protection serves you properly, it’s smart to look into getting rental reimbursement. The cost and time you say will be your own.