Building your own boat can be an exciting and difficult process that will give you the confidence to sail around with something you created. Whether you want a cabin cruiser or an aluminum fishing boat, something is refreshing about life out on the open water. Although advanced watercraft might be challenging to construct in your backyard, many manufacturers allow potential boat owners to have a significant say in what their boat will look like and do. A modern ship requires extensive craftsmanship and manufacturing. Also, it’s possible to build your own boat. Regardless of how you plan to use the boat, you must remember to protect it with commercial marine insurance.
How Building Your Own Boat Affects Insurance
Though you may prefer the customization options of building your own boat, it takes more work. Additionally, it potentially increases your financial liabilities with the watercraft. You have to make sure the boat floats. Then, you also have the risks associated with the actual construction process. Regarding boat insurance, particular requirements must be met. These can include how long the boat is or the horsepower used for the engine. You could be left without the necessary coverage if your specifications don’t meet the requirements.
Outboard motors have different insurance coverage than an “L” drive or inboard motor, as do sailboats where the power is derived primarily from the wind. The type of engine, age of the boat, and where it will operate typically affect what coverage is available for insuring your boat. Alternatively, the significant issues with building your own craft are often with the value of the watercraft and covering the materials during the build.
Boat Value
Building your own boat can affect the valuation of the watercraft, with policies generally being agreed value or actual cash value. With an existing cash policy, the payout is equal to the cash value at the time of partial or total loss. With agreed value, depreciation isn’t considered with the complete or partial loss of the boat. The value of the boat, established when the policy was written, is used for the payout. If you are doing the build yourself, your emotional and physical investment can complicate a reasonable value for the boat.
Construction Materials
Your boating liability insurance won’t cover the cost of construction materials that are in transport. Commercial marine insurance is a policy that covers movable or transportable property. Also, you should check to see that your material supplier carries this to protect your cargo when in transit. You wouldn’t need to purchase this coverage on your own unless you use the boat for commercial purposes.
Given the additional liabilities when building your boat, you may need to consider more than just a standard boating insurance policy. Working with an insurer specializing in watercraft can help customize the proper protection plan for your situation.
About Mariners Insurance
Mariners General Insurance Group was founded in 1959 to protect boat owners and marine business clients. We are marine insurance experts and insure boats worldwide – in every ocean on the planet. Marine insurance is critical if you own a boat or nautical business. Trust the professionals with all of your Boat Insurance needs – trust Mariners Insurance. Call us at (888) 402-5018 any time you have questions or concerns about insurance for your vessel or marine business.
