ANGLER'S BOAT INSURANCE: WANNA' BET?

Boat owner's insurance can seem terribly complex; particularly if you read -- and you must do that! -- the typical policy. But at the bottom all insurance is a bet. The company bets that they can quote prices that permit profits from premiums and their money management. You bet your coverage removes the risk of unacceptable loss. So don't bet too high -- unless you expect a physical damage loss due to accident or your own fault. Of course, insurance isn't voluntary in many cases. Lenders, for example, usually require insurance to cover their boat loan. Don't bet too low on the personal liability coverage side either. There's no limit on the foolishness and culpability of others.

Broadly speaking you buy two types of coverage: physical damage insurance to cover losses to your own boat and equipment, and liability damage insurance that covers other people's injury or property damage.

Physical damage insurance is usually called hull insurance although it takes in the whole boat. Three types of hull insurance are common:

1. Limited-named perils are specified in the policy and usually cover fire, collision, winds etc. What you see is exactly what you get here so premiums are less.

2. Broad-named perils cover "perils of the sea" due to wind, storm, shoals etc. and are broadly interpreted by the courts. Such a policy won't cover damages due to normal conditions. Exclusions like a "machinery damage" clause that limits power train recovery to that caused by perils of the sea, not owner error, are usual.

3. Comprehensive boat insurance is the most common type of policy. It covers physical loss or damage "except as specifically excluded." Do realize that you can often get coverage for these excluded perils for an additional fee. You pay more for this kind of coverage. It's a good choice for new boaters who can find odd and interesting troubles on the water.

Here are ten points to consider:
1. CHECK RATES BEFORE YOU BUY
Since the amount you pay for insurance depends on the kind of boat you own and how and where you use it, think about insurance before you buy a new or used boat. Smaller boats with lower horsepower diesel or outboard engines used in sheltered waters with a long winter layup used by skilled, accident-free skippers cost less to insure. Larger or "zoom" boats with big engines run all year in exposed waters by beginners cost more.

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