FAQ
1. Why Should I insure my boat or PWC?
In some cases insurance is mandatory – to obtain a loan on your watercraft for example the financial institution will require an insurance policy to be in place for the life of the loan. Otherwise, the choice is yours, but it’s a wise choice to reduce worry. With the right type and amount of insurance on your watercraft, you can be protected from the risks to property and person that are inherent in everyday life.
2. Why is it important to insure your property to the correct amount?
Don’t over or under-insure
Under-insure and you might be left carrying the cost of damage, theft or loss of property. Over-insure and you will be paying more than you have to.
3. How can I lower the cost of my insurance policy?
Set the right deductible levels
One way to control your premiums is to set a higher deductible, which means you accept more risk for covering small losses. Insurers tend to have deductibles ranging from $300 to $1,000. Ask your broker to explain the cost implications of different deductibles.
Stay claims-free
One of the best ways to minimize premiums and obtain discounts is to avoid making claims. One of the best ways to do this is to reduce the risk factors that drive claims.
On the water:
- Avoid accidents by navigating and operating safely and never while impaired
- Never leave valuables onboard
- Carry proper safety and emergency equipment
- Wear approved PFDs
In storage:
- Consider locking devises to immobilize a watercraft stored on a trailer
- Install satellite monitoring systems to monitor the whereabouts of the watercraft
- Clear the snow and ice off your watercraft to prevent damage
These are just a few examples of ways in which lowering the risk can mean lowering the cost to you.
4. When should I claim against my insurance policy?
If you experience a loss that exceeds your deductible, ask your broker what the impact might be on your premiums if you make a claim. Weigh the cost of premium increases vs. the cost of repairing the damage. The best advice might be to absorb the cost yourself in exchange for lower premiums long-term. If it is the right time to make a marine insurance claim. The right time to make a claim is immediately or as soon as you are able.
Alert your broker as soon as practically possible.
If there is any danger or on-going damage occurring, your first priority should be to insure your safety and limit the damage to your property. At that point, you should take care to act quickly and with the right information.
- Alert your broker and your insurer of an insured loss as soon as your situation permits
- Keep phone numbers available
- Alert the police of any theft or break-in
- Do not alter evidence of the loss, for example, by starting to repair the damage after a collision has occurs, or altering the scene of a break-in. If you absolutely must alter anything, take detailed pictures of the damage first
5. Will my insurance policy cover my loss?
Remember that your policy has limits and exclusions that mean’s some losses are not covered. Wear and tear the natural deterioration of the watercraft is not covered by your watercraft insurance policy. Damage from a fire that was set intentionally might not be covered, and the theft of portable equipment from your watercraft could be beyond your insurance limit.
Is it covered? Ask your broker first.
6. I have reported my claim, what will happen now?
Once your claim has been made, the insurance company may appoint an adjuster to get a clear picture of the circumstances and extent of the loss. They may assist in securing repairs and can help with various arrangements that may be required. They might also decide to limit the amount of a payment or to not pay at all – depending on the situation. If you are unsure about the role of your adjuster and the information they are using, be sure to contact your broker who can help bring clarity to the situation.
When it comes to insurance, there is no question too basic. If there is anything you don’t understand, don’t be afraid to ask us. At Northstar we are here to help. It’s what we do.