In New York, boat owners face the same requirements as automobile owners. They are required by law to obtain at least liability coverage for any motorized boats. These laws prevent financial losses for boat owners when an accident occurs. A boat insurance company in Nassau County NY provides these policies for owners to protect their investments.
Liability Coverage for Accidents
Liability coverage for accidents covers the property of the other boat operator. It also provides medical coverage if another operator or their passenger is injured during the accident. The total value of coverage depends on the policy selected. However, the vehicle owner isn’t required to purchase liability coverage only. It is the least amount of coverage that is acceptable under applicable laws.
Limited Navigational Boundaries
Limited navigational boundaries may apply in some policies. These restrictions apply to where the boat owner may travel and still maintain coverage. To eliminate these possibilities, the boat owner must review the terms of their policy. If they wish to travel outside of the boundaries assigned to the policy, they should acquire a different policy to increase their coverage area.
True Replacement Value When the Boat is a Total Loss
The true replacement value for a boat is defined in the policy. The value is based on the replacement of the same model possessed by the boat owner. To achieve this value, the boat owner must ensure that their policy states true replacement value in the terms.
An agreed-upon value isn’t the same as the actual cost of replacing it. This is a value that is acceptable to the property owner. An insurance provider could utilize these option if the policy doesn’t specify the actual cash price of the boat. This value is lower than market value in most cases and could produce a potential financial loss.
In New York, boat owners need to evaluate their options when choosing an insurance policy. The terms of the policy may lead to limitations if the property owner isn’t careful. Owners who need to evaluate coverage should contact a Boat Insurance Company in Nassau County NY or get more information about policies here.
