Brockville Squadron
CPS Insurance Information
Boat Insurance Renewals
Check Your Coverage
Many boaters purchase their Boat Insurance as part of their Home Owners Policy, but does this source of insurance provide adequate coverage for all the risks faced by boaters today?
Check your policy for coverage of the following Boater's Risk:
The Situation ... you have just had serious collision on the water. No one was injured but contrary to all manufacturers specifications the boat and motor, with a full load of fuel, has sunk to the bottom in 40 feet of water. The Ontario Ministry of the Environment has got involved and wants the boat raised immediately to prevent further pollution. The cost of divers and the salvage operation will be very expensive. Do you have insurance coverage for this risk?
We hope to publish in the 2006 March issue of Meanderings another article outlining the difference between actual cash (depreciated) value coverage and agreed-upon value coverage; an important consideration when selecting the Insurance Coverage you need.
The cheapest premium may not provide the risk coverage you will need in case of a claim but your membership in the Brockville Power Squadron provides you with access to the best and most inclusive risk coverages available at the most reasonable premiums on the market.
Check out Cowan Insurance Brokers.
Pat Sayeau
Electronic Communications Officer
CPS Insurance Information
Boat Insurance
Does Your Policy Measure Up?
Boat insurance can be very confusing. With many available policies available through many insurance companies, boat owners need to take the time to understand the insurance they are purchasing. Saving a few dollars on your insurance policy could be costly in the event of a claim.
A Boat Insurance policy can provide physical damage coverage on an Actual Cash Value (ACV) or an Agreed Value basis. Both types of insurance policies offer important coverages but there are significant differences.
Actual Cash Value policies pay for Replacement Cost less depreciation at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the approximate market value of your vessel. A partial loss is settled by taking the total cost of the repair less a percentage of depreciation.
Agreed Value policies mean you and your insurance company have agreed on the value of your boat and in the event of a total loss you will be paid that amount. With respect to partial losses, there is typically no deduction for depreciation. Most Agreed Value policies will apply depreciation on certain items such as sails, protective covers, dinghies, trailers and outboard motors.
Example of Actual Cash Value vs. Agreed Value on $10,000 damage to a 5 year old outdrive:
| Actual Cash Value | Agreed Value | ||||||||||||||||
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Although this is only one aspect of a boat insurance policy, you can see how the difference between the two types of policies can be very costly. It is important that you understand what you are purchasing and that you are dealing with an insurance representative who understands boating insurance.
Cowan Insurance Brokers not only understands your unique needs, we know the proper course of action to satisfy all types of watercraft coverage.
If you are not presently insured through our Canadian Power & Sail Squadrons Marine Insurance Program, please contact one of our marine insurance representatives or log on to our website to access our online application for a no obligation quotation:
1-800-268-2628
or
www.cowaninsurancebrokers.com
Craig Beaton, Cowan Insurance
2006 February
CPS Insurance Information
Brockville Squadron
WebMaster
-first posted: 2006-02-05
-updated: 2006-10-09