Are your agency customers boats insured as an endorsement to the HO or on a stand alone policy?

With spring quickly approaching (even in Utica), there is a good chance that you will have customers stopping in to insure their watercraft. How you insure that watercraft could significantly determine whether a loss they may suffer will be covered.

In many situations, you have options to offer them. They can insure the watercraft as an endorsement to the Homeowners policy or on a stand alone policy. There is a good chance that the premium to add the exposure to the HO policy will be less than a stand alone policy. There is a good chance that this is because the coverage is less.

Some of the differences:

Most HO policies have limitations on the length and the horsepower of the watercraft. Stand alone policies are written based on the actual exposure.

– Medical payments is available on a stand alone policy, typically not on the HO policy

– Valuation – Most HO policies only offer ACV coverage while more options are available when the coverage is written separately

– Additional coverages such as fuel spill liability, wreckage removal, roadside assistance and on-water towing are common on stand alone policies but typically not on the HO

The best approach is to offer your customer options and explain to them the differences in coverage and premium between insuring their “toy” as an endorsement to the HO policy or as a stand alone policy. Then document the file accordingly.

This should ensure that both you and your customers have an enjoyable summer.

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