Insurance World

Purchasing a houseboat is guaranteed to give you years of unlimited pleasure. Provided, however that you’ve insured your houseboat properly. Otherwise, you could lose your life’s savings and in the worse case scenario, and be forced to file for bankruptcy.

In the marine insurance industry, houseboats are categorized together with jet boats, ski boats, sailboats, cabin cruisers and party boats as a pleasure boat. For this reason, this kind of coverage is not generally handled by regular insurance companies. You should carefully shop for underwriters who specifically handle these policies.

The first houseboat insurance tenet you must follow is to find a reliable insurer who’ll service your needs. Conduct the search both ways.

·
Word of mouth
Ask boating friends for insurance recommendations.

·
Conduct research on the recommended insurance carriers, the company in-charge of providing you coverage.

The following facts (as provided by the Insurance Information Institute) about your houseboat, such as horsepower, size and age of your boat, the type of craft and where it is used (i.e. moored in a river or hurricane prone area), determines coverage and premium you will pay for your houseboat.

Once that’s done, you can now carefully consider which of these policy clauses can help maximize your coverage and accurately answer your particular needs.

Hull and Machinery Clause

Because your houseboat is placed in the same pleasure boat category as a cabin cruiser, certain rates, coverage, restrictions, and terms will be similar.

Still, there are differences. The function of a houseboat is different from a cabin cruiser. The construction of a houseboat reflects this. They are normally flat-bottomed and designed to navigate slowly through the waters.

Many houseboats are bulkier, since they come equipped with bigger sleeping & living areas, full galley, and enclosed head. A race boat or cabin cruiser is smaller, more seaworthy, and easy to maneuver and built for speed.

Liability and Medical Payments to Others

Pays for bodily injury or property damage you are liable for.

Physical Damage Coverage

Pays for the damage your boat, motor, and trailer sustain.

Uninsured Watercraft Coverage

Pays for personal injury damages you are entitled to recover from the owner or operator who have not insured their vessel.

Medical Payments For The Insured

Covers you and your family’s medical fees, if you sustain accidental boating injuries.

Towing and Assistance

This coverage pays for the expenses you incur when you request a towing service to deliver the fuels and replacements parts, or fix your engine.

Additional Living Expense

you’re reimbursed for expenses incurred by living in a hotel, because your boat had to be repaired.

Be a responsible houseboat owner. Customize your houseboat insurance to safeguard your personal well-being, finances, and protect your investment.

Homeowner insurance premiums are on the rise. There was a time when the home policy was the best and least expensive of all the property and casualty insurances. The homeowner policy is under attack. There are many more exposures than ever before. Toxic mold has caused some real problems in some areas of the country and caused the premiums to rise dramatically. Some states exclude coverage for toxic mold entirely. Natural disasters have had an affect on rates. The recent barrage of hurricanes has caused supply shortages and these shortages increase the demand and the price for repairs. These expenses are passed on to the policyholders eventually.

The rates are calculated by insurance company fiduciaries. They look at the cost of claims and the cost of doing business and compare it to the company revenue to come up with your rate. You have no control over how the companies derive their rates. They have to get approval from their state insurance departments before setting rates or increases. They cannot arbitrarily come up with a figure.

What Can You Do?

1.Understand Your Policy – Make sure that you know what kind of policy that you have right now. If you are making your first purchase then you need to research the kind of policy that you want. Replacement cost or Actual Cash value are your two major choices. Replacement Cost policies replace your structure or contents with material of like kind or quality with no depreciation. The actual cash value policy settles your loss by taking the replacement cost and subtracting depreciation because of age or use.

2.Self Insure – The best way to purchase insurance is to self-insure by using the highest deductible that you can afford. Homeowner policies have a much lower frequency of claims as compared to auto insurance. Low deductibles no longer justify the higher premium.

Use your declarations page when you comparison shop and make sure that you receive all the discounts. Multi-policy, protective device discounts, and retirement discounts are available on almost all homeowner policies. Check our recommended insurers for rates.