Spring is just around the corner. Before you know it, flowers and lawns will be blooming with beautiful and vivid colors. Springtime is also when boat enthusiasts often start to consider purchasing a sail boat or power boat. Many consumers, however, lack an understanding of the myriad and multi-faceted loss exposures associated with boat ownership. And boat lovers may mistakenly believe that coverage applies under their homeowners policy for these loss exposures.
Most homeowners policies, however, only insure losses arising from certain low-valued or low-powered boats. Therefore, you should contact us before buying a boat to discuss the proper insurance protection for it. You do not want to be “underwater” when it comes to the proper watercraft insurance. Consider the following tips to assist you in this process.
If you do not already have one, purchase a personal umbrella policy in addition to a watercraft policy, particularly if you buy a speed boat, a boat designed for water skiing, or some other craft with a higher potential to cause damage or loss of life. Umbrella policies are relatively inexpensive, and since most forms do not have limitations with respect to watercraft, they will provide excess limits above the liability coverage in the watercraft policy.
In addition, the watercraft liability limits should meet the underlying limits requirements of any applicable personal umbrella policy. Lastly, use the same insurance company that writes your homeowners and personal auto policies for your personal umbrella policy. This approach will alleviate many potential issues in interaction between policies and coverage concerns.
International Risk Management Institute, Inc.
For more information or answers to your insurance questions, contact us at Allan Block Insurance Agency, www.ambins.com, located in Tarrytown, NY in the heart of Westchester County, a key business district near New York City. We write auto, home, renters, condo, co-op, personal, business, life and group insurance for clients locally and in NYC, CT, NJ, PA, MA and many other states. The Professional Agency with the Personal Touch.