Do I really need all this coverage?

Hagerty Marine often contacts its policy holders to confirm that their coverage is adequate to meet their needs. One question we often hear is, “Do I really need all that?” Of course, that’s up to you. But history has taught us that “unexpected” doesn’t mean “impossible.” And because, with few exceptions, marine insurance is not required anywhere in the U.S. and Canada, always assume that other vessels don’t have coverage. In reality, about 60 percent don’t (BoatUS.com, 2010), so it’s best to be among the 40 percent who do.

Many of you may have seen photos from an incident last summer involving a jet ski and a classic wooden boat. The pictures alone conjure up a boatload of questions and scenarios. So let’s go over a few and see how Hagerty’s coverage would apply.

If something ran into your boat and caused damage, our Agreed Value physical damage coverage would come into play. If it wasn’t a total loss, your policy would cover the cost of repairs, minus your deductible. If your vessel was declared a total loss, you would be paid the full insured value and the deductible would be waived. You would also be offered the opportunity to obtain the actual physical salvage (what may be left).

If anyone in your vessel was injured, your Uninsured Boaters Coverage would pay for medical expenses associated with the injury to the amount identified on your Declarations page. In most cases that amount is $300,000.

If your vessel leaked fuel or oil as a result of the accident, our policy would pay up to $854,400 for clean-up and/or containment.

If your boat sank and had to be salvaged, you would receive the full Agreed Value of the boat plus the lesser of $100,000 or boat value for salvage.

So let’s say your vessel, valued at $100,000, was declared a total loss after being struck by a jet ski (rupturing the fuel tank in the process) and sinking. Your Hagerty policy would pay $100,000 for the boat and up to $100,000 to salvage the boat, $854,400 for fuel containment and $300,000 for any personal injury, along with a $2,500 base amount for personal effects. That’s a potential total payout of $1,356,900 for an incident you had no fault in causing – which gives you 1,356,900 reasons to be properly covered.

To find out more about Hagerty’s Classic Boat Insurance, click here.