BoatU.S. - August/September 2011

TAKE A SAFETY COURSE: Safe boating has benefits beyond not becoming an accident statistic. Completing a safe boating course can earn you a 10-percent discount on your insurance premium. Take the BoatU.S. Foundation’s Free Online Course at www.BoatUS.org. 1

MEMBERSHIP HAS ITS
PRIVILEGES: Membership
in either the Coast
Guard Auxiliary or the United
States Power Squadrons is reward-
ing in its own right, but if you’ve
been on the fence, here’s another

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reason to join — a 10-percent
discount on your insurance.

FOCUS YOUR CRUISING
AREA: If your insurance
policy covers you on the
waters of the Pacific from Vancouver,
to Mexico, and you never leave Puget
Sound, chances are you’re pay-
ing too much for your coverage.

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UPDATE YOUR HULL
VALUE: Many policies are
based on an “agreed hull
value,” the specific dollar amount
that you and your insurer agree your
boat is worth at the time the policy

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is written. This is the amount that your insurer would pay you in the event of a total loss of your vessel (minus salvage costs if your policy doesn’t cover them, see sidebar). But boats, like cars, depreciate over time. If it has been a few years since you first insured your boat, it may be worth looking into what it’s currently worth. Lowering the agreed hull value will lower your insurance premium. Just remember to consider any outstanding balance on your boat loan as a minimum, regardless of the NADA or BUC book values.

HOW MUCH SALVAGE COVERAGE DO I HAVE?

financially for third-party damages in the event of an accident, but will not reimburse you for the loss of or damage to your boat. If you’re thinking about switching to a liability-only policy, make sure it still provides coverage for salvage. If your boat sinks at its slip and your policy doesn’t cover salvage, you’ll be out not only a boat, but also the thousands of dollars it will cost to raise, remove, and dispose of your former vessel!

Salvage coverage is an important component of your boat insurance policy, but not all salvage coverages are equal. Some policies will pay for the costs associated with salvaging your boat out of the agreed hull or actual cash value portion of your policy. This can effectively leave little or no money left over to pay you (or your bank) for the loss of your vessel. A more thorough policy will pay for salvage out of a separate coverage up to an amount equal to the agreed hull or actual cash value. A policy written this way will pay to salvage your boat, and pay to replace it.