Summer Fun on the Water – Summer Safety Part 2
By: Mary Thompson, Capstone Brokerage President, July 16, 2015
In Las Vegas summer is in full swing and the activities are endless, swimming, boating, camping and road trips. Many people enjoy summer water activities throughout the warm (rather HOT) season. Are your summer water toys properly covered by the right type of insurance policy? It surprises many of our customers that they need additional insurance for boats and personal watercraft vehicles. If you own a Jet Ski or Wave Runner for example, you are ready for some fun this summer! These fast paced exciting water sports do, however, require more insurance to help protect the owner. Owning a boat may also be considered a huge luxury during the summer, so make sure you are properly covered to ensure your protection in the event of an incident out on the water.
Many individuals think their homeowner’s insurance policies will cover them, but that is not always the case. Many Homeowners’ Policies have no liability coverage which means you are not covered for your personal watercraft or boat. It is recommended that you purchase a separate marine policy as well as umbrella coverage. Below is some information about both Boaters insurance, and PWC coverage.
Boat Insurance:
Many individuals think that having your boat added to your homeowner’s policy has you covered. One thing to consider is that many homeowners’ policies will not cover marine events such as a wreck, and salvage work. Your homeowner’s policy will basically cover the boat while on property, so unless you own a lake, it is smart to get separate coverage.
There are two popular types of Boater Insurance policies:
1. Agreed Value, which lets you, set the value of the boat and in the event of total loss you will be paid out in that amount to replace the boat.
2. Actual Cash Value, which may be the less expensive type of coverage is actual cash value, which will take into account depreciation so the payout value will be based on what the boat is worth at the time of the loss.
Personal Watercraft Vehicles (PWC):
If the water craft goes less then 25 mph, a homeowner’s insurance policy or renter’s insurance policy may cover all your needs. This would include non motorized watercraft such as canoes, sail boats and small motor boats such as those used for fishing. However, if you have Jet Skis or Wave Runners, we recommend that you obtain a separate marine policy. The increased thrill comes with increased responsibility.
Coverage for PWC should include:
1. Medical Coverage if the PWC driver or passengers are injured
2. Watercraft Liability to help protect damage or injuries caused by the PWC
3. Physical Damage Coverage to protect the PWC while in being transported to the dock or storage in case of theft, vandalism, and natural disasters.
The cost of coverage for both PWC and Boaters insurance is based on many factors such as boater’s experience. Average rates to cover a boat for example are about 1.5% if the boats value. Rates are also based on location, for example if you live in a hurricane prone area the rate may be higher. In places with decreased risk of natural disasters, like here in Las Vegas, Personal Water Craft Coverage or Boaters Insurance may be less. Proper insurance will not only pay for loss, but also covers damage, injuries and legal fees associated with an event. Be sure to be open and honest with your insurance agent and/or insurance provider to ensure you are covered properly. Next month I will give insight about summer safety and insurance for land adventures.
