Boat Insurance Claims Advice

November 12, 2018 by Steve Gebhardt

According to the U.S. Coast Guard, in 2017, there were 4,291 recreational boating accidents. As a result of these accidents, there were 658 fatalities, over 2,600 injuries and $46 million in personal property damage. In 2016, there were roughly 5.9 fatalities per 100,000 active, registered boats and this ratio was 5.5 in 2017.

Some of the leading causes of boating accidents are due to operators who are inattentive and lack experience, mechanical failures as well as alcohol usage. For these reasons, responsible boat owners and operators are encouraged to maintain comprehensive boating insurance coverage.

Boating in Arizona

Arizona has several lakes and rivers that are popular for recreational boating. The National Safe Boating Council reported that Arizona ranked 8th nationally in the number of boating accidents that occurred within the state. Roughly 2% of all boating-related deaths in the nation occurred in Arizona last year. Far too often, boaters simply ignore some of the fundamental safety practices associated with boating. Some examples include having inexperienced boaters or children operating the vessel, failing to wear a life jacket and operating under the influence of alcohol.

Do You Need Boat Insurance?

Unlike car insurance, Arizona currently does not mandate that a boat owner or operator maintain any type of marine insurance. Boat liability insurance is designed to cover damages such as bodily harm to others that is caused by the operator. Many boats are expensive and an insurance policy is critical to protect your watercraft if it is damaged. Since boats tend to be costly, many owners choose to finance their purchase from a lender. The lender will require the owner to maintain proper coverage for their protection. Boats may or may not be included under a homeowners insurance policy. Be sure to review the terms of your policy, as the coverage limits for boats may be insufficient.

Most Common Boat Insurance Claims

Weather related: Amid high winds or storms, larger bodies of water often become extremely volatile and troublesome. Vessels on the water during hurricanes have led to thousands of claims in many southeastern coastal areas of the country. Although it is unlikely, a boat may also potentially be struck by lightning.
Theft: Larger marinas are attractive to many thieves who seek to steal items such as equipment or electronics. In some instances, a boat itself is stolen. In roughly 90% of the cases, the loss is massive.
Striking objects or sinking: A boat may encounter shallow waters and the hull may become severely damaged by striking the bottom. Boats also incur damage when they strike objects within the water such as rocks or trees. A small opening that allows water entry can quickly become a huge problem when a boat begins retaining significant amounts of water.
Fires or explosion: The leading cause of boat fires is electrical problems, such as faulty or exposed DC wiring. Highly flammable fuel can also ignite and cause tremendous damage to your boat.

Types of Boat Insurance Coverage

The categories of coverage for boats are very similar to the various types of automobile insurance.

Bodily Injury Liability & Medical (Med) Payments: Bodily injury (BI) is a form of liability insurance. BI coverage pays for costs such as medical expenses or wage losses in a boating accident where the policyholder is found to be at fault. Med payment coverage is designed to pay for injury-related costs from a boat accident without regard to fault.
Property Damage: This is liability coverage used when a policyholder is deemed financially responsible for property damage. For example, your boat inadvertently strikes a dock and causes damage.
Collision or Personal Property: This type of coverage pays to repair or replace damage to your boat. What if your boat or some equipment is stolen? This coverage will reimburse you for your losses, unless the insurer offers a separate insurance option specifically for theft.
Fuel Spill & Emergency: Would pay for “clean up” efforts if your boat were to develop a fuel leak and cause contamination. This coverage is often bundled with emergency assistance coverage to pay for services such as towing, removal and transportation of your boat if it becomes disabled.
Uninsured Boater: This coverage would be used to repair or replace your boat if another operator was responsible and does not have insurance coverage. It is a practical type of coverage in Arizona because boat insurance is not a state requirement like automobile insurance is.

Agreed Value vs Actual Cash Value

If your boat is damaged beyond repair (a total loss) or stolen, you would file a claim for replacement. If you have an actual cash value policy, the amount the policy would pay is equivalent to the current market value for the watercraft. Boats depreciate over time just like cars. The current market value is likely to be well below what you originally paid for it. With an agreed value policy, the amount the insurer will pay for replacement is a fixed amount agreed upon in the contract. Be sure to understand your policy terms to avoid any surprises in the event you need to file a claim.

Insurance Claim Reporting

The insurance claims process for watercrafts can be somewhat more complex than those involving cars. The market for boat repair parts is smaller and there are less options and fewer repair service providers. Boat owners often find repair costs to be considerably higher than they may anticipate or expect.

In the event that you must file an insurance claim, it is best to do so shortly after the accident occurs. You should contact your provider by phone or online to start the claims process and receive a claim number. You may be assigned a claims representative at this time. If physical damage has occurred, it is often beneficial to take photos for reference and documentation. Always seek medical attention even when your injuries appear to be mild. Keep in mind that you should avoid any unnecessary delays in contacting your insurance claims department.

Repair Estimate for Claim

The insurer may have a field representative or a claims adjuster investigate the incident and review the damage. For minor claims, the insurance company may allow you to proceed with the repairs after providing the insurer a repair cost estimate. If the repairs are costly, the insurer may require that you obtain multiple quotes or estimates. Avoid using repair or body shops that predominantly focus on repairing vehicles, as the quality of the work may not live up to your expectations.

Is Your Boat Trailer Covered?

Another critical policy detail is whether the trailer used to transport your boat is included in the policy. Many insurers require an additional coverage option, which will slightly increase the premium price. It is also possible that your car insurance may include or provide optional coverage for a trailer.

Insurance Coverage When Renting a Boat

Those who are renting a boat should also consider the potential liabilities involved. This situation also is one that should be addressed prior to an accident, potential claim or coverage denial. If you have an up to date boat insurance policy, it will likely provide liability coverage if you are operating the boat; however, damage to the vessel may not be covered. Be sure to verify the details with your agent.

Most boat rental locations require a security deposit ranging from $200-$500. This deposit is unlikely to cover any excessive wear & tear or significant damage to the rental boat. One possible option is to obtain temporary coverage from the rental site. For example, Arizona Boat Rentals makes it clear that renters are responsible for damage and offers an insurance coverage option through a third-party.

Pinal County Boat Insurance Agency

A boating accident may quickly spoil a fun day on the water. In these situations, it is critical that a comprehensive boat insurance policy is in place from a reputable insurance company. The Gebhardt Insurance Group in Casa Grande provides boating insurance that will protect you from liability and protect your boat. Contact our office today to speak with an agent about all of your insurance needs at (520) 836-3244.

Does Boat Insurance Cover Blown Engines?

October 25, 2018 by Steve Gebhardt

Your boat should be a source of enjoyment and relaxation. Purchasing a great boat insurance policy can keep your time on the water stress-free. From collisions to a blown engine, even the most responsible boaters can run into problems out on the water. Before you take your boat out, make sure you have the proper insurance coverage. You do not want to be left without a safety net in the case of an accident or property damage.

Boat insurance can be purchased for all types of motorized watercraft from jet skis to fishing dinghies to yachts.

A common question boaters ask is, “Does boat insurance cover blown engines?” Whether or not your insurance company will pay for repairs not only depends on the cause of the damage, but on the type of insurance policy you have purchased.

Types of Damage Coverage

When purchasing a boat insurance policy, there are three main options for covering property damage.

Actual Cash Value (ACV) pays the cost of replacing the vessel, less depreciation.
Agreed Value consists of a payout amount the boat owner and insurer have previously agreed upon in the event of a covered total loss.
Replacement Cost means if your boat is three years old or less, the insurer will replace it with a similar vessel.

Within those types of coverage, your individual policy will have guidelines for when property damage is covered by your insurance and when it is not. This can depend on your insurance company and the limits of the policy package you purchased.

Commonly Covered Loss

Standard boating policies are considered “at risk” policies, meaning that if the cause of the loss is not specifically excluded, it is automatically considered a covered loss. The following events are usually covered within claim limits.

Fire, theft, and vandalism.
Damage to person or property caused by your boat.
Injuries to you and anyone on your boat in case of an accident caused by an uninsured boater.
Medical payments including hospital bills, surgeries, and x-rays due to a boating injury.
Oil removal and damage costs for fuel spills, up to certain statutory limits.

Mechanical Coverage

Your boat insurance may provide coverage for a blown engine. This depends not only on your insurance company but also on your policy. Your reimbursement may include replacement cost coverage, but can be subject to depreciation. The age of your motor will also be a factor.

For most policies, there are certain limitations to this type of coverage. It is mainly a question of cause. Common exclusions include:

Normal wear and tear on the engine
Improper engine maintenance
Damage from mold, insects, zebra mussels, or small animals
Defective machinery or machinery damage

Liability Coverage

Your boat liability insurance will cover financial obligations you incur if you are responsible for a boating incident that results in harm or damage to people or property. Without adequate liability insurance, you will have to pay these expenses out of your own pocket. Liability costs add up quickly. If you cause an accident, boat insurance could be one of the best investments you have ever made. Events you may be held financially responsible, or liable for, include:

Property damage liability to another person’s boat, dock, or possessions.
Bodily injury to another boater or passenger on your boat.
Environmental damage, such as fuel spills.
Wreckage removal after an accident.

When you file a claim, your insurance company will also consider the factors surrounding the incident and there are several considerations that may determine whether or not your insurance policy will cover it. It is important to find out these limitations and keep them in mind before you take your boat out onto the water.

Navigational Limits

For larger boats, insurance policies have limits outlining where you can or cannot navigate your vessel. If you operate your vessel outside of the agreed upon territory, your insurance may not cover you. Broader navigational parameters come with more expensive insurance policies.

Layup Periods

Most boat owners store their boats out of the water during cold weather and insurance companies often give boat owners a credit because the vessel is not being used. However, if you take your boat out on the water before your agreed upon layup period ends, any damage you incur will not be covered by your insurance.

Underage Operators

It can be tempting to let your children try their hand at driving the family boat, but if your child does not meet the age and license requirements, any damage to your boat caused in an accident will not be covered. You may also face legal expenses incurred through liability. Age and license requirements for operating personal watercraft vary from state to state, so be sure to check the requirements where you live before turning over the wheel.

Marine Inspections

Most insurance companies require older boats and jet skis to be inspected and assessed by a marine surveyor to determine their seaworthiness, condition, and market value. The results of the inspection will be used in determining your coverage. If you own an older vessel, it is a good idea to have it inspected for safety issues even if it is not required by your insurance.

Shared Ownership

A boat can be a significant investment and friends and family members often buy a boat together. In most cases, the boat will carry a single insurance policy with both owners named. If an accident happens, the owner not involved is still bound by the same liabilities and insurance responsibilities.

Boating is a popular way to get outdoors, relax, and spend time with those who are important to you. Owning a boat can be a very rewarding experience, but it is important to understand the insurance requirements that will protect both you and your investment. Before you hit the water, let an insurance agent at Gebhardt Insurance Group build you a policy that will give you adequate protection and peace of mind. Call or text us today at 520-836-3244 to find out more.

What To Do If You’re In A Boating Accident

September 27, 2018 by Steve Gebhardt

No one wants to be involved in a boating accident. Boaters who follow all of the guidelines and follow all safety procedures can still be involved in a boating accident. However, taking precautionary measures before getting in the water can minimize the probability of injury.

According to the U.S. Coast Guard, there were 4,463 boating accidents in 2016 leading to 701 deaths and 2,903 injuries. Even if you are equipped with navigational kits and life jackets, maintain a safe speed and are aware of the weather conditions, your security in the water can never be assured.

All boaters should be educated on the proper procedure to follow in the moments following a boating accident.

Step One: Seek Medical Assistance

Immediately following an accident, the first thing you should do is see if anyone involved needs immediate medical attention. Check to see if you are injured. Call for help or ask a bystander to call for medical assistance if you are unable. If the boat operators are not in need of immediate medical assistance, they should make sure that everyone involved in the accident gets the medical attention they need. Even someone who has sustained minor injuries should see a doctor immediately. Some injuries do not exhibit symptoms right away. It is highly advised for everyone to see a doctor.

Step Two: Move To A Safer Place

Boating accidents can be lethal. Often the impact is so high, it throws passengers off of the boat. If you find yourself in the water after a collision, the first thing is to do is get back to the boat as long as it is not broken or unstable. There may be other boaters in the water who need your help. Ensure that everyone affected is safe and secure.

Once you and all other passengers are back onboard, move away from the scene of the accident to a safer place. Ensure that your boat is not blocking the path of any other boat to reduce the risk of another boating accident.

Step Three: Contact The Coast Guard

Inform the Coast Guard about the accident as soon as possible. The location of the accident and where you are currently located should be made clear to further the rescue effort. The Coast Guard should be informed of all injuries and casualties so they may provide you with the proper assistance. Remain at the location you gave the Coast Guard until they arrive. If you have to move, try not to move too far away from the scene of the accident or the Coast Guard may have trouble locating your boat.

They will gather information to file an accident report. It is your duty to stay truthful and cooperative. This report is vital for insurance claims and compensation.

Step Four: Share Contact information With Witnesses

Exchange information with the boaters involved in the accident as well as all witnesses present. It is imperative to ID all witnesses and boats present at the time of the accident. It will play a significant role in the insurance claim process. Secure all contact information and refrain from making any conjecture about who is at fault.

Collect as much evidence as you can from the scene. Take pictures of everything damaged as well as any food or beverage found at the scene. All evidence you capture will help you prove who is liable.

Step Five: Call Your Insurance Agent

After receiving medical treatment, the next step is to contact a your insurance agent. That is if you made the wise decision to purchase boating insurance. If you had insurance with Gebhardt then you are in good hands. If you haven’t purchased insurance, but you are thinking about if you need to or not then consider the benefits of purchasing insurance. Insurance will protect you in the case that an accident occurs and either your boat is damaged or you are at fault for damages. Not only will boat insurance cover damages, but also bodily injury liability in the event that someone is harmed in an accident. Make sure to contact a Gebhardt representative to make sure you are protected in the event of an accident.