Going to rent a boat out on the lake and think homeowners liability will cover you? Maybe, but most likely no! You should buy the insurance offered at a rental unless it is a boat with less than 50hp, or a Sail boat less then 26ft. Jet skis and Hovercrafts are specifically excluded. Umbrella liability policies lists the same guidelines.

Own a boat, read on?

 However if you own a boat and have it insured, in most cases the rental boat is covered from that policy.

Coverages:

 Coverages on a boat policy are listed just like an auto policy. You have liability, uninsured/underinsured boater, medical, comprehensive, collision, and towing.  

Optional coverages:

 Personal property – for skis, life jackets, etc.

Trailer – covers the value of the trailer. Note: when pulling a trailer the liability to others comes from the auto insurance policy of the car pulling it. The damage to the trailer is picked up under trailer coverage, on a boat policy.

You can get Actual Cash Value or Agreed Amount Coverage on the boat’s value. Actual cash value pays you what the boat could be bought for in the used market. Agreed Amount pays at the stated value on the policy.  Agreed value cost more but can provide better coverage.

If you own a boat larger then 26 ft, your are probably better served by an insurance policy called a Yacht policy.

Exclusions on a boat policy:

Boating outside U.S. and Canada waters (Lakes and coastal waters).

Mold, mildew, and Fungi

Lack of reasonable care and maintenance

Racing, unless a sailboat

Ice while boat is moored or laid up afloat

Insects, animals and marine life

Policy is Void if boat is used for business or rented to others.

WHY?:
Suppose that you had a machine in the living room of your home, that every month “spit out” about  $ 4,000.  Would you consider insuring that machine?  Sure you would.  You wouldn’t want someone to come and steal that machine from you as you would lose what that machine produces, $ 48,000 each year.  Well a “bread winner” is such a “money machine”.  A  family will need to replace this income and life insurance is the solution. 

RISK                                                      ODDS                               COST
 
Fire                                                      1 in 1200                  $ 200,000
Auto w/Liability                            1 in   240                   $ 355,000
Major Medical                                 1 in     15                    $   50,000
Long Term Disability                   1 in       9                     $ 160,000
Long Term Care                              1 in       2                    $ 100,000+
Death before age 65               1 in      5.5                 $ 500,000+ 

 What?: Life insurance is the solution, but the questions that stumps most is what amount and what type of  life insurance. 

The amount is called the face value of the life policy. Face values can range from 10K on up. The face amount for working adults with dependent spouses and children should look at replacing their annual income.  Most people’s incomes are generated to age 65 when they hit retirement age. For this reason we need to first focus on this time period of earning years, and not for the whole life. 

There are different methods for coming up with a face amount to replace the income. 

1) Live off the interest of the face amount and not touch the principal amount to replace the income. (Most conservative)
2) Do 5-8 times income face amount to provide an adjustment period for spouse and children. (More Flexible)
3) Just buying what is affordable as any life insurance is much better than nothing in the event of a tragedy.
You might already have some life insurance and you can subtract that out and the resulting number is your life insurance need or gap. 

Types of policies: 

1) Term policies that expire 10,20, or 30 years out from issuing. (good to cover just your earning years to age 65)
2) Annual renewal terms, these policies are typical of work group policies and can change premium year to year or lapse if job is lost. (easy but not permanent)
3) Whole life policy, never expires, and are the most costly. Can be used in some circumstances for tax deferment. 

WHO?: Any person that has dependents they want to protect, such as children, spouses, elderly parents in your care, etc. should have life insurance. 

WHEN?: Life policies are easier to qualify and a better rates when at a younger age (65 and younger). but can be obtained at almost any age for a price. 

 HOW?: To apply for a life policy personally versus being part of a group you must take a paramedical exam. The exam is paid for by the insurance company and includes health history questions, urine, and blood sample. It takes place at your home or office at your convenience. From there the insurance company determines a tier for pricing. Typically premier, preferred, or standard. 

How much?, a lot depends on age, term, and face amount, but for example policies can be had at 13 dollars a month for 150K 10-year term for a 30 year old.

Many people don’t realize that  homeowners and renters policies have special sub limits for jewelry. On most policies this limit ranges from $500 – $2000 special limit for jewelry theft losses. Many women have an engagement ring worth more than the standard limit and would be out of luck if something were to happen. So it’s important coverage to consider.

 How to get proper coverage:

  To get proper coverage on a jewelry item it needs to be scheduled on the home or renters policy with a jewelry floater. In order to do so the insurance company will require an appraisal or a receipt dated within the last 2 years to verify the value. They will also ask for some extra premium! This rate is typically 1.75-3.00 dollars per 100 insured. For example the cost for a 10K item, would cost 200 per year at a rate of $2 per 100. Seems expensive but consider you are walking around with the value of some cars on

Benefits of scheduling jewelry:

Beyond the proper coverage limits, two other very important factors come into play.

1)     Floaters typically have a zero deductible. This is important as the average home policies deductible is 2000. So even for less expensive jewelry items it can make sense to “buy back” the deductible in this way.

2)     Floaters cover mysterious disappearances. This means it doesn’t have to be a theft like it does under the home policy. You could just accidently lose it in the lake, at the gym, etc.

Other Sub-limits catagories to be aware of:

1)      Firearms

2)      Fine arts

3)      Silverware, Goldware, Platinumware, and Pewterware

4)      Imported Rugs and Tapestries

5)      Money, Securities, Deeds, Valuable Papers

6)      Comic Books, Collectable

7)      Business Property

8)      Computers