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.

Read Also

Know more about exciting & latest articles right here

Foods to Avoid to Manage Eosinophilic Esophagitis

Foods to Avoid to Manage Eosinophilic Esophagitis

Eosinophilic Esophagitis, or EoE, is a chronic digestive disease of the esophagus caused by an allergic condition. It is characterized by chest pain, heartburn, and solid food dysphagia. If this disorder is left untreated, it can cause esophageal remodeling and stricture formation. This disorder is also marked by eosinophilic inflammation and impacts the quality of life of the affected person. You can check out various reliable health websites to get information on eosinophilic esophagitis. A patient with EoE must be very careful with his health and meal plans, as research suggests that EoE is linked to food allergies. Therefore, the six most common food items that are responsible for such allergies include: Dairy Cow milk is said to be one of the most common reasons for EoE. Milk protein can trigger too many eosinophils. You should avoid food items made up of milk, buttermilk, lactose, and other related dairy products. You can replace dairy products with coconut hemp, dairy-free yogurts, cashew ice cream, etc. Soy Soy-based food items include tofu, soy butter, soymilk, and miso. Soy cheese, soy nuts, soy milk, etc., should be avoided and can be substituted with refined soybean oil or coconut aminos. Wheat You might think wheat is only found in bread, cereal, or baked goods.
Read More
5 Common Digestive Issues and Their Symptoms

5 Common Digestive Issues and Their Symptoms

One of the most vital systems in our body is the digestive system. It is responsible for the digestion of food and the distribution of nutrients throughout the body to meet the bodily requirements for energy, development, and cell repair. Issues in the digestive can interfere with the body’s ability to get energy from food. While some gastrointestinal issues can go away with healthy eating habits, other concerns may require treatment.  Irritable bowel syndrome (IBS) IBS is a functional bowel disorder. This means the cluster of varied symptoms categorized as IBS is brought on by changes in the normal functioning of the digestive system. The primary sign is abdominal pain, which can develop before or after a bowel movement, and is a reliable indicator of IBS. Additionally, one may experience both constipation and diarrhea. The form of IBS can be determined depending on whether a person has diarrhea or constipation more frequently or both equally. Other IBS signs and symptoms are incomplete bowel motions, white mucus in the stool, and bloating. Nutrition is important for managing the symptoms of IBS, which includes eating low-fat, high-fiber meals and avoiding common trigger foods when the cause of the condition is unknown. Food poisoning or gastrointestinal infection are common causes.
Read More
8 Common Cleaning Mistakes to Avoid

8 Common Cleaning Mistakes to Avoid

Most of us make it a goal to keep our house clean and tidy. Cleaning the house may look like a straightforward task, but there are certain aspects that are generally overlooked. Cleaning is a time consuming and tedious activity. And most of us make common cleaning mistakes that do not provide us with the results we expect. So here is a list of cleaning mistakes to avoid for better results and a sparkling clean home. Mixing cleaning chemicals You may think mixing two or more cleaning products will increase the cleaning power. However, this can be very dangerous as it might release toxic fumes. For example, household cleaners like Clorox Pinesol should never be mixed with bleach as they can react together to produce hazardous chlorine gas or even chloroform. Similarly, Pinesol disinfectant should not be mixed with room spray sanitizer as the chemicals could react together to unleash a toxic cloud of gases that can trigger respiratory problems and even cause skin burns. Instead of mixing chemicals, use a single cleaning agent or solution and stick to a reliable brand. Alternatively, you can also enlist the help of a cleaning company, like Servpro Services, which offers a range of affordable home cleaning services. Using feather dusters A feather duster may seem very useful, but all it does is spread the dust from one surface to another.
Read More
11 Potential Warning Signs of Excess Sugar Intake

11 Potential Warning Signs of Excess Sugar Intake

Processed foods like cakes, cookies, candies, and breakfast cereals contain added sugar, and most people find them delicious and irresistible. However, they have little nutritional value. Eating too many sweets can increase the risk of several health issues. For instance, it can lead to blood sugar spikes and heart disease. When a person eats too much sugar regularly, the body begins to give signs that it is time to cut back on sweet foods. High blood pressure Besides monitoring salt intake, people suffering from high blood pressure should watch their sugar intake because eating too much sugar is also linked to high blood pressure. According to a study, foods high in sugar can reduce nitric oxide in the blood vessels, which can, in turn, impact blood flow and lead to high blood pressure. Mood swings or irritability Feeling moody, irritable, or depressed on and off is a common sign of high sugar intake. Mood swings occur as foods high in sugar affect the neurotransmitters in the brain that regulate mood. Sugary foods also negatively impact gut function, another factor linked to a person’s mood. Low energy or tiredness Binging on sugary snacks wreaks havoc on one’s blood sugar levels. It first causes blood glucose to rise, providing a boost of energy.
Read More