The ABCs of Boat Insurance

Do you own a boat in Mt. Ephraim, NJ? If yes, do you have boat insurance from Marino Agency Inc.? Regrettably, many boaters like sharing their experience in the water but don’t like talking about boat insurance. The reality is that boat accidents can be expensive, and it can get messy if you don’t have boat insurance.

What’s your excuse for not having boat insurance? For some, they think boat accidents rarely happen. Others don’t buy insurance because it’s not mandatory. Whatever your reason, you are making a financial blunder by ignoring boat insurance. 

Here is what you need to know about boat insurance, and how it protects you and your boat.

It may be required

Boat insurance isn’t required in New Jersey, but it may be necessary if a federal-regulated lender has financed your boat. Boat insurance protects the lender’s interest, and you may be required to maintain it until your loan is fully paid.

Know the difference between agreed value and actual cash value

For the agreed value, you and your insurer agree on the worth of your boat. This amount is the much that your insurer can pay. The agreed value favors many boats because you get compensation without removing the depreciation factor.

The actual cash value is the market price of your boat at the time of damage. Unless your boat increases in value, you will always be on the losing end when receiving compensation after your boat has been stolen or written off.

Your boat has exclusions

Like other insurance coverages, your boat has exclusions. Your typical boat won’t cover the below risks:

  • Machine breakdown
  • Normal wear and tear
  • Damage by marine life
  • Damage by pests or mold
  • Intentional damage

Need to learn more about boat insurance? You can always talk to Marino Agency Inc. for more information. Also, don’t shy off from passing by our Mt. Ephraim, NJ offices to chat with one of our agents.