If you’re thinking of purchasing a boat insurance plan, it’s important to understand the basics of this policy. For physical damage or total loss, the coverage includes the entire hull, fittings, equipment, furnishings and all permanently attached tools, as part of an agreed amount value policy or an actual cash value policy. These key policies also offer comprehensive liability protection to Memphis, TN boat owners, though you can also opt for a standard homeowner’s policy. There are some unique differences between this two main types of policies offered by insurance companies like Keltner Insurance.

Actual cash value policy – This coverage pays for replacement expenses minus depreciation value at the time of loss. In case a total loss occurs, boat pricing guidelines and other key resources are utilized to determine the boat’s estimated market value. A partial loss is normally settled by deducting depreciation percentage from the total repair cost. 

Agreed amount value policies – When you take this policy, it means that you and the carrier have agreed on your vessels value, and in case of a total loss, the insurer will pay this amount. This coverage also replaces old items with new ones after a partial loss without deducting the depreciation cost.

Physical damage exclusion can include damage from insects, animals (like sharks), mold, defective machinery, zebra mussels, machinery damage, or normal wear and tear.

Your boat insurance can also cover:

• Property damage –This is the damage that may be caused to another individual’s property
• Bodily injury –covers injuries caused to another person
• Medical expenses –pays for injuries to the boat owner and passengers
• Theft

Note that there are liability limits for each coverage, so it’s safer to ensure that your policy exceeds the set boat insurance limits in Memphis, TN.

For more information on boat insurance basics, be sure to contact Keltner Insurance today.