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CONSERVATION CORNER
(For the week of May 19, 2008)
Is Boating Insurance Needed?
by James L. Cummins

Last week we covered National Boat Safety Week and boating safety. However, have you considered another important aspect of boating – boat insurance?

Of course, the wise thing to do is to have your vessel insured properly – that is, if it has a value which would be difficult for you to replace. There are several factors to consider when dealing with this topic. You will have to do some research on your own before actually obtaining the appropriate insurance for your boating needs.

The first thing to do to find a good insurer is to ask friends who have had a claim in the past about their experiences with the particular insurer. Do they have a separate policy or did they add their boat to their homeowner's policy. If the boat is covered under the homeowner's policy, then this could be very limiting. Just check it out.

Do you want coverage for the fishing gear on board? What about towing service for any on-the-water problems that might occur? Find an insurance company that offers this service and ask if it will count against you as an insurance claim.

“Agreed Value” and “Actual Cash Value” are two types of coverage. The difference between them is depreciation. “Agreed Value” costs more up front but your boat is covered at whatever value you and your insurer agree upon. “Actual Cash Value” coverage costs less but the company will factor in depreciation and only pay up to the actual cash value at the time the boat is declared a total or partial loss or the property is lost.

Another item to consider is “cruising areas.” This means there are certain areas where the policy is in force. For example, is your cruising area limited to Ross Barnett Reservoir, or Okatibbee Reservoir or maybe Eagle Lake? You may have to contact your insurer for an “extension” if you travel outside of these areas. Find an insurance company that doesn’t put limits on where you can trailer your boat.

If you fish in tournaments, make sure you have the liability coverage required. Also, look for a policy that offers some type of reimbursement for your entry fee if something unforeseen prevents you from competing after you have paid.

Last but certainly not least, see if the insurer offers discounts for features such as a diesel powered engine, fire extinguishers and on-board radios. These items could save your life and your boat if an emergency occurred.

It doesn't matter if you are new to the water or if you’ve been acquainted with it for years, it is very important to have the right kind of insurance coverage. Make sure you know exactly the coverage you are getting and what is not covered. If you don’t understand any of it, ask your agent for an explanation in layman’s terms.

So get that vessel insured and continue boating in Mississippi's great waters!