Going fast requires focus, high level of competency and state of the art equipment. If you are the owner of a high-performance boat, you need to apply the same focus to your insurance policy and understand that not all policies are created equal. When you sign the application attesting all the information provided is correct it becomes part of your insurance policy. If you lie on the application and a loss occurs the company can and will void all coverage even if the lie has nothing to do with the cause of the loss. Also, any modifications to your boat after the fact may void coverage if not disclosed to the insurance carrier.
What is a performance boat anyways? Technically any boat designed for speed, but in an insurance company’s eye, anything that is capable of a speed over 65 mph.
When insuring your performance boat here are some of the policy warranties/stipulations on the policy you should be aware of:
-Named operator provision, most policies have them. Only those who are listed and approved by the insurance company are covered to operate your boat. Passengers/crew would be covered if they did not operate the boat.
-Engine modification warranty. Any modifications to alter the performance of your boat must be approved, usually in writing, by the insuring company.
-Organized racing or drag racing exclusion. Poker Runs are normally covered except if you drag race with your next door neighbors’ boat!
-Controlled substance Warranty. Because of the skill required to operate boat coverage is excluded if operator/driver is charged/convicted of DWI, DUI or any other drug or alcohol related event at the time of loss.
High performance insurance premiums may vary drastically from one person to the next or one boat to the next. Factors that can affect the premium and qualify or disqualify you from obtaining coverage include but are not limited to: prior performance boat experience, claims history, insurance score, navigation territory e.g: if you operate in salt water you are likely to pay 30% more than operating in fresh water, hull type (catamaran verse V-hull) & automobile driving record history.
When selecting the best policy for your needs it’s important to know what you are buying. Make sure that the company you are purchasing the policy through knows what they are selling you and knows about performance boats. Seek out a specialty agent who knows the industry, can shop coverage on your behalf and has a proven track record within the industry. The last thing you want to do is spend time finding a new insurance company, especially when you could be boating.
By: Ben Belyea
Global Marine Insurance Agency
Global Marine Insurance Agency is solely dedicated to providing insurance coverage to members of the boating community. Let us help you protect your investment. Get an online quote today…