Why Do You Need Watercraft Insurance?

watercraft insurance

Whether you are a boat owner or you are planning to get into some business in this regard, it is very important that you opt for commercial watercraft insurance in Lake Charles LA. The one reason why so many people readily get along with motor vehicle insurance but not with boat insurance is that waterway accidents are less heard of and often recoverable. But however, it is not obsolete and it is very important.

Basics of Watercraft Insurance

Watercraft insurance is actually a cumulative term that covers a wide perimeter. There are various dimensions of watercraft insurance – yacht insurance, boat insurance, commercial vessel insurance, Lake Charles LA. Watercraft insurance aims at extending insurance coverage to waterway vehicles like yachts, boats, ships, and vessels. The basic requirement to procure watercraft insurance is that – the vehicle needs to have a horsepower of 25 miles per hour at the least. The watercraft insurance will cover the damages caused to the vessels due to any type of accident, physical injury, and even theft cases.

The insurance policy, premium paid, and the coverage offered will depend on various parameters like the size of the vessel, the speed, the type of content that was within the vessel.

Now there is one question that many people frequently ask and that is watercraft insurance absolutely necessary. Well, there are three factors to consider in this regard. 

  • First is that if your vehicle crosses international water boundaries, then it is absolutely a mandate to have watercraft insurance. Also, there are many states that do not allow waterway trade without valid watercraft insurance which acts as an identity validation as well. So, in case your waterway vehicle carries out trade with any such state, watercraft insurance is necessary to have. 
  • Second, if you are about to take some kind of vessel or boat loan, then it is essential to have watercraft insurance issues in your name as a boat owner. Usually, lenders will deny extending any type of loan to you if you cannot provide supporting documents for your watercraft insurance.

Important Facts About Watercraft Insurance

Watercraft insurance like most other insurances offers liability coverage provisions along with the physical insurance to the boat. The personal liability coverage extends the physical health insurance coverage for the members within the vessel. In case they suffer from any accident or injury while being on the vessel, they are going to get insurance coverage under the provisions of the watercraft insurance. The owner’s family members also get covered under certain insurance policies. Make sure to check the details of the provision before investing in any watercraft insurance. 

The rate of premium and other processing charges usually varies across the companies and most importantly depends on the size of the vessels. There are different rates for boats, yachts, vessels, and ships according to their size. For the liability coverages, the nature of goods being shipped also makes a difference.

The age of the vehicle, intended use, and the policy buyer’s past track records also create a significance. 

Commercial vessel insurance lake Charles la is also limited to certain geographical borders. That means the coverages provided may be restricted only up to certain waterways, lakes, or water bodies. So, make sure to check whether the water body that your vessel uses the most is covered under the policy or not. 

Choose your insurance agent properly. Go for the insurance companies that have a good track record. Also, make sure to go through the terms and conditions of the policy really well before making any payment. There are many fraudsters in the market who can dupe you. Hence it is always better to be aware

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