People usually tend to underestimate the potential value of boat insurance policies. In some cases, they are so excited after buying a boat that they forget about boat insurance in the bargain. The truth is that boat insurance is just as necessary as car insurance but some people assume that they won't need boat insurance at all. Even when people buy boat insurance, they usually cancel it during the off-season for many reasons. Due to weather conditions, you won't be able to use your boat for a particular time of the year, usually between Labor Day and Memorial Day. Chances are that your boat will remain stored under your garage during this period of time and you assume it is entirely safe under storage. As a result, you might be tempted to cancel the boat insurance policy during the off-season in order to save a little money. Here are five reasons which will force you to rethink your decision:
Five reasons to insure your boat in the off-season
1. Statistics show that nearly 20% of all insurance claims are reported during the off-season. The truth is that a thousand things could go wrong even when your boat is off the water. If you don't have proper insurance throughout the year, you might be forced to pay for repairs out of your own pocket. Needless to say, this could mean bad news for your finances.
2. Incidents of theft and vandalism happen all the time. In fact, chances of your boat getting stolen are higher when it remains in the same place for an extended period of time. To make matters worse, a regular home insurance policy does not cover your boat in case of a theft or robbery unless you have purchased a specialized form of coverage. In the absence of such a clause, you might lose out on any form of compensation at all.
3. Natural calamities never come announced. Even when your boat is parked safely in your garage, it can be damaged in case of a flood or an earthquake. For instance, reports reveal that Hurricane Sandy caused damages worth $650 million as it destroyed close to 65,000 boats. As is obvious, these disasters can happen at any given time in a year. Additionally, other catastrophes like a fire could also destroy your boat.
4. It might sound bizarre but a stationary boat is also capable of causing injuries to people. If a certain accident occurs in the vicinity of your boat, you can be held reliable for the accident. Under normal circumstances, a boat insurance policy provides liability coverage i.e. it pays for the damages of the injured party on your behalf. However, without liability insurance, you might find yourself under a heavy debt.
5. Contrary to popular perception, cancelling your boat insurance during the off-season will not save you money. Several insurance companies offer incentives for maintaining your boat insurance policy throughout the year. Such companies reduce the deductible for every claim-free period under your insurance plan. After a few claim-free periods, your deductible will come out to be quite affordable. These benefits can be availed only by people who have a valid boat insurance policy throughout the year. If you think of long term prospects, a low deductible is a small price to pay for extended safety and protection during the off-season.
For a competitive Florida boat insurance quote, give Casey Insurance a call at 888-537-1412.