Choosing the Right Marine Boat Insurance

If after seeking boat insurance quotes for the latest pleasure craft, it can be difficult to decide on that one policy that offers the best in terms of cover, conditions, and restrictions. Both the cover and services offered by the different marine boat insurance companies will vary.

In order to make that informed decision its important to look at the different types of cover that might be offered. Also, it can help to understand the legal requirements, as this varies from one state to the next, with some requiring more cover than others.

Full Coverage (also known as all risk or comprehensive cover) is the widest form of insurance coverage. It provides cover for the vessel against accidental damage, theft, vandalism, fire, and collision, whether its on the water or laid-up ashore.

These all risk policies also include a liability section (also called Protection & Indemnity (P&I)). This section covers a boat owners legal obligations to a third party, such as damage to property or bodily injury. Cover is limited to the amounts stated in the policy.

Also look towards the potential restrictions and benefits that might be offered your way.

How is a claim settled in the event of a claim - is it 'Actual cash value' - the market value is determined by the condition & age of the vessel at the time of the loss. Or 'Agreed Value' - the sum insured is determined by the boat owner & underwriter at the time of taking out the policy, so in affect the insured value. This can make a considerable difference when it comes to settling a claim, so be certain to ask how the insurance policy operates.

Often insurance companies offer benefits or discounts. If having auto and boat insurance with the one company, this might result in 10 - 15% discount or more. And if the boat owner has competed a boat course or qualification this can result in a further discount. Remember to ask for these discount when getting the boat insurance quotes.

If a vessel is 10+ years of age, over a certain length or amateur built, a insurance company might ask that a survey report is carried out ashore prior to offering cover.

Is the navigational limits suited to where you intend on using the vessel. Also, if you decide on making a trip outside those limits at a later date, how is that going to affect the premium. Be sure to ask all relevant question at the time of the quotation so that there is no nasty surprises later on.

Restrictions that are seen often on marine boat insurance policies include - date restrictions, does the craft need to be laid-up at any time of the year. Also, are there restrictions on who can operate the vessel.

Its important that when seeking out boat insurance quotes it is tailored to suit your individual needs. This can have a dramatic effect on how a potential loss is handled. So, be certain that the right marine boat insurance is in place.

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Ontario Marine Insurance - Does Your Boat Have Replacement Cost Coverage?

Boat Insurance in Ontario does not have to be complicated, nor does it have to be difficult. It is actually a simple process to insure your personal watercraft, boat or Yacht. Do you have replacement cost included on your boat insurance policy? Check your watercraft policy and be sure! Stay above the waterline by staying on top of your marine insurance policy.

When you make a watercraft purchase you should review all your boat coverages in the same sense you would when buying home insurance or car insurance policies. Don't always rely on cheap insurance; double check everything about your boat policy! Marine insurance is a very broad business and there are a lot of insurance brokers that carry watercraft insurance coverage. However, some brokers may not have the right boat insurance coverage for you and your boat; should you need to use your coverage.

I have had the opportunity to buy marine insurance and work in the marine insurance business for several years and know that there are many policies out there with many different limits.

I recommend you shop around and review the policy coverages, after all sometimes $50 in your pocket matters, but it matters even more if you are not getting the coverage you want.

Guaranteed Replacement Cost-This feature is an extremely important coverage to have and it works along the same lines as a homeowners policy. Does your broker offer replacement cost? Will they repair, replace or rebuild your boat with a like kind quality of the same materials. This indemnifies an insured back to their financial situation they should be.

Professional Staff- As an experienced broker working in Ontario, I have had the experience and knowledge of working with brokers in the Marine Insurance business. I have had first hand experience to review the thorough training program every boat insurance broker needs to receive. Some brokers train their staff with more than just general insurance knowledge, which is extremely important when dealing with a million dollar yacht. Most brokers do not have the best markets to quote yachts, PWCs, fishing boats, pontoon boats and runabouts with inboard or outboard engines, however there are a lot of brokers who do have this capacity.

Emergency Towing- Some marine insurance companies will pay for towing of your vessel in the event of a claim situation without having to pay your deductible.

Loss of Use (Rental) - You need to be covered for reasonable costs incurred should your vessel be disabled as a result of a claim, limits may vary so ask your broker.

Agreed Value-In the event of a total loss, you want to be indemified for the amount of insurance shown on the policy at the time of the loss (less any applicable deductible) without depreciation.

No Depreciation on Partial Loss-In the event of a partial loss, if no used replacement parts of like kind and quality are available, make sure your insurance company will repair your vessel with new parts.

Customized coverage - No matter what kind of vessel you own, you need to be in touch with the right broker to insure your personal watercraft or luxury cruiser.

Instant Approval - When consulting a marine insurance expert ensure you can get the quote in writing and that they can offer you coverage instantly.

Quick Claims Settlement - When it comes to insurance claims, you want the best possible solution when it comes to making a claim. Question your Ontario marine insurance broker's service and find out who will adjust your claim and if it is a 24 hour claims service.

Territory - Know your navigation limits.

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Marine Insurance - Reinsurance Cost Pressures - 2009

Reinsurance, and in particular treaty reinsurance is a fundamental part of any insurers' internal risk management plan.

The protection of the company balance sheet and capital base from extremes in loss frequency and severity or aggregations is of critical importance to the viability of an insurer.

Reinsurance is a global business heavily intertwined with the trade, commerce and finance industries of most, if not every nation on earth.

Events of significance to, or which impact on the reinsurance industry will affect all insurers to some degree.

Recent events may combine to have a sizeable impact on 2009 reinsurance renewals.

Hurricanes Gustav & Ike

They did not have the same news profile as that attributed to Katrina and the subsequent flooding of New Orleans but, the most recent loss estimates suggest that Gustav & Ike will contribute significant claims to reinsurers. In particular, the oblique angle at which Gustav approached the Gulf Coast as it produced a greater than anticipated impact on the rather dense concentration of oil and gas facilities in that region.

Recently reported figures suggest a combined industry loss from Gustav and Ike in the US$20 - $25bn range (A$28 - 35bn). Losses of this magnitude will put pressure on many insurer and reinsurer margins.

Global Credit Crisis

The sub-prime mortgage problem in America has put the international banking industry in the spotlight. Some have failed and many forced to merge or seek funds from the State. The supply of credit has evaporated or become prohibitively expensive as inter-bank lending ground to a halt. In addition the dive in world share prices will bring ratings, valuation and capital adequacy pressures to many other companies across all market sectors.

Introduction Of more immediate concern to the Insurance Industry is the potential for capital to disappear or be re-directed away from reinsurance. In addition, poor investment decisions may have a profound impact on otherwise secure businesses and downgrades may result where ratings agencies are obliged to delve more fully into any affected company.

Impact on Reinsurance

Reinsurance cost pressures will develop due to:

o Reinsurer difficulties in sourcing new capital and/or an increased cost of capital.

o Capital Market demands for increased returns.

o Capacity restrictions.

o A flight to quality (of security) - cedants to reinsurers and vice versa.

o Reduced return on investments.P

o Write-downs in value of investments.

Recent comment from reinsurers suggests an upward pressure on treaty pricing for the December 2008 renewal season with flow on effects to insurance contracts during 2009.

Disclaimer: This bulletin is for information purposes only and is not legal advice.

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