Ace Insurance: Find The Right Coverage

Insurance coverage for boats and yachts varies greatly from company to company. Researching and selecting the most comprehensive insurance protection available — to ensure the appropriate level of coverage for your vessel, yourself and your onboard guests — is of the utmost importance.

To assist you with this process, specialists with ACE Recreational Marine Insurance, one of the nation’s largest marine insurance firms, offer these tips for smart insurance buying and understanding coverage options:

1. Total loss settlement — The most significant coverage difference between various policies is whether the loss settlement basis is “Agreed Value” or “Actual Cash Value.” “Agreed Value” policies typically pay the limit shown on the policy when the boat is deemed to be a total loss. An “Actual Cash Value” policy may only pay the current market value of the boat, factoring in depreciation. While an “Agreed Value” policy generally costs more and provides broader coverage, “Actual Cash Value” policies may suit the needs of an owner looking for an economical alternative with less coverage. (Note: Some lenders may require you to carry “Agreed Value” coverage.)

2. Partial loss settlement — “Replacement Cost” coverage normally pays for damage on a “new for old” basis (less your deductible), and age depreciation is not factored in for most losses. Actual cash value coverage for partial losses may reduce your claim payment based upon depreciation, and your policy deductible will apply as well.

3. Liability coverage — Some important liability features to ask about include coverage for: legal defense costs, wreck removal, oil pollution and contamination cleanup, and non-owned (i.e. borrowed) boats. If you employ a captain or crew, you should ensure that Jones Act coverage is included in your policy.

4. Medical payments — Determine whether coverage includes you and your family, and that your intended activities are covered, such as waterskiing. Given equal amounts of medical payments insurance, coverage on a “per person” basis may be preferable to coverage on a “per accident” basis.

5. Uninsured boater coverage — This is an important feature to have in your policy since many boaters on the water don’t carry liability coverage.

6. Supplemental coverage — Check to ensure that personal property coverage and towing and assistance are available, and choose the limits that suit your needs.

7. Seek out the marine experts — Consider working with an insurance agent or company that specializes in marine insurance. They can help you navigate through the different options and select the coverage that’s right for you. In addition, marine specialty agents and insurance companies can generally offer broader coverage than a typical auto and home insurer.

Policy Checklist

A checklist for comparing your policy (all the following features are offered by ACE Recreational Marine Insurance):

• Automatic coverage for operating non-owned (borrowed) boats?
• Thirty-day automatic coverage for a newly acquired boat?
• Salvage costs paid up to and in addition to your boat coverage limit?
• Coverage for cell phones, computer hardware/software, sporting equipment and eyeglasses/sunglasses while on board?
• Legal defense costs paid in addition to your liability limit?
• Captain/crew covered for liability while operating the vessel?
• Pollution/fuel spill liability coverage that includes bodily injury damages?
• Pollution/fuel spill limit meets new OPA liability requirement of $800,000?

— Submitted by Ace Recreational Marine Insurance, 436 Walnut St., WA11F, Philadelphia, PA. 19106; www.acemarineinsurance.com.
The information, material and descriptions contained herein are intended to be summary in nature.

Michigan Boating 2010 » Ace Insurance: Find The Right Coverage