Is Your Boat or Personal Watercraft Properly Insured?

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Jul 20, 2011, 03:16 ET

WORCESTER, Mass., July 20, 2011 /PRNewswire/ -- As the summer continues to heat-up beaches from coast to coast, nearly 17 million boat owners and 1.6 million personal watercraft owners are having fun on the water. Unfortunately, many don't have the right insurance in place, and risk running into rough waters ahead.

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With this in mind, The Hanover Insurance Group, Inc. (NYSE: THG), a leading provider of business, auto and home insurance products, today advised watercraft owners to consider whether their risks are properly covered.

"Whether you own a powerboat, sailboat, personal watercraft, or canoe, it's smart to review your insurance coverage with a trusted independent agent to determine if you need additional coverage," said Mark Desrochers, president of Personal Lines at The Hanover Insurance Group. "Taking the time to talk with an independent agent also will offer peace of mind that the right protection is in place if something goes wrong."

A local agent can answer key questions such as: Does your current insurance provide coverage for your boating activities? Do you have coverages and limits that are adequate given the kinds of water activities you're planning? Can watercraft coverage be added to your other policies?

A good independent agent will help you answer some important questions:

Do you have coverage when your vessel is off-the-water?—Watercraft owners also need to consider coverage for their boats and trailers while parked at home. An existing homeowners policy may provide a measure of coverage, but it's likely to be limited and may not apply at all for damages while stored at your home. Other risks such as theft and vandalism also need to be considered.

Are You In Compliance With What Your State Requires?—State insurance requirements for boats and personal watercraft vary, so it's important to understand local requirements. In some places boat insurance may not be mandatory, so coverage for losses caused by uninsured boaters may be wise.

Have You Taken Inventory?—As with a home inventory, boat owners may be well served by documenting the vessel. For example, it is a good idea to take pictures and or video of the boat and to store these items in a place other than your home. A written description can further document the boat, supplemented by model and serial numbers of key mechanical and electronic items.

Is your watercraft's value assessed correctly?—Another policy consideration is whether the boat is covered at an "agreed value" or "market value" in the event of a total loss. Agreed value is more commonly applied to newer boats, while market value is generally the basis for settling the loss of older vessels. So, if you had agreed value when your boat was new, but you have had it on the water for several years, you may be over-paying.

Have You Considered a Bundled Package?—There may be a financial advantage to obtaining insurance for your boat or personal watercraft from the same company that insures your auto and home. More insurance companies are offering discounts when a customer maintains multiple policies with the same company.

Does an Umbrella Policy Make Sense?—Boat owners may be advised to consider an umbrella policy to deal with potential loss events that exceed policy limits of the boat insurance and put their personal assets at risk.

For a list of independent agents in your local area, please visit the "Find an Agent" section at www.hanover.com.

About The Hanover

The Hanover Insurance Group, Inc. (NYSE: THG), based in Worcester, Mass., is the holding company for a group of insurers that includes The Hanover Insurance Company, also based in Worcester, Citizens Insurance Company of America, headquartered in Howell, Michigan, and Chaucer Holdings PLC, based in London, and their affiliates.

The Hanover offers a wide range of property and casualty products and services to businesses, individuals, and families through a select group of agents and brokers. The company is ranked among the top 25 property and casualty insurers in the United States and has been meeting its obligations to its agent partners and their customers for nearly 160 years. Through Chaucer, the company also underwrites business at Lloyds in all major insurance and reinsurance classes, balancing global marine, energy, non-marine and aviation with U.K. motor and nuclear. For more information, please visit www.hanover.com.

CONTACT:
Media Relations
Amy Banek
[email protected]
(508) 855-4486

SOURCE The Hanover Insurance Group, Inc.