Why Your Marine Insurance is Failing and What to Do About it?

Marine Insurance

Most people who own vessels in Canada are blissfully unaware that their marine insurance does not provide them with the necessary coverage. This is the case because American corporations issue the policies in question. Consequently, they only cover many of the dangers specific to Canada.

If you are still determining whether or not your policy will cover you in the event of an occurrence, it is time to examine the choices available to you. A good selection of reputable marine insurers in Canada can provide you the coverage that meets your requirements. You may believe you have everything covered with your marine insurance, but what if you’re wrong? Here are some potential reasons why your coverage isn’t protecting you and some possible solutions to the problem.

You Didn’t Shop Around For the Best Policy

As with any other kind of insurance, marine coverage cannot be purchased and then ignored. As your boat evolves and your requirements change, you must maintain the finest insurance policy. It’s essential to do your homework before settling on a marine insurance policy since many alternatives exist. An older yacht, for instance, may benefit from the additional protection and higher maximum limit provided by high-limit liability insurance.

Some coverages may not be suitable if you want to upgrade your boat or install new electronics or equipment. Additionally, safety enhancements should be taken into account. Verify that your marine insurance policy covers all possible outcomes. If the standard coverage your policy provides doesn’t quite cut it, consider looking into the additional coverage provided by the optional riders.

The Deductible is too high, and you can’t afford to make a Claim.

Your Deductible is the out-of-pocket expense you must make before your insurance company pays for any repairs or losses. If you have a high deductible and ever find yourself in a position where you can’t afford to file a claim, your insurance policy has failed you. Generally speaking, you shouldn’t have to sell your firstborn kid or take out a loan to meet three times your Deductible in the event of a significant medical emergency.

If you can’t pay the Deductible, getting marine insurance is pointless since any damage would result in significant financial hardship. If you’re having this issue, lowering your Deductible is your best bet. In exchange for the exact annual premium cost, you get additional safety and adaptability in the event of a catastrophe. Consult an insurance agent or financial adviser if you need assistance determining the appropriate amount to save each month for your premiums and an emergency fund.

The Marine Insurance Policy Doesn’t Cover Everything You Need It To

Marine insurance may be purchased from a wide variety of providers. The issue is that most of them fall short of your requirements. Or they are attempting to offer you a completely worthless product. After hanging up the phone, the average time it takes to purchase marine insurance is two minutes. This is because the salesman presented a laundry list of coverage options, questioned whether or not you were interested in purchasing them, and then pushed you into purchasing a “package” based on your preferences.

Although this strategy effectively gains customers quickly, there are better options for guaranteeing complete safety. The issue with this method is that it is predicated purely on what the questioner values rather than what the respondent values. What if there’s anything crucial they’re overlooking? Does it simply not apply, so they ignore it? What if they carefully consider a crucial factor but must inquire about it? This may get complicated at times.

Marine Insurance

Your Boat is Too Old or Not Worth Enough To Justify Insurance

You can’t afford to insure your yacht since it’s too old or not valuable enough. The first issue with marine insurance is the cost, especially if your boat isn’t very fancy. It might be challenging to locate reasonably priced protection for an older boat that is still seaworthy. Marine insurers, like auto insurers, will charge more for an older vessel that isn’t worth as much as a modern one. 

If you’re starting and don’t have much cash to throw at your boat, you may have to wait a few years before an insurer is willing to insure it. In addition, many insurance companies will not cover boats older than 20 years, regardless of their value. There’s no way to make a 20-year-old yacht seem new again, no matter how hard you work on it, so you’re stuck with this if you need more financial flow to fix it.

If your marine insurance is failing, you don’t have to let that happen. It’s essential to understand why you might be at risk and how to remedy the situation. You can contact the National Vessel Registry Center at +1 (800) 419-9569 (Canada) for more information on your vessel.