Airplanes, watercraft and other types of air and watercraft are among the most expensive forms of transportation that an individual can purchase. It doesn’t make sense to purchase one without getting it properly insured so that the watercraft or plane investment is not wasted by an accident or any number of other problems.
Insuring a Watercraft
One of the things that makes insuring a watercraft complicated is that smaller watercraft are more like cars, while larger boats, such as a yacht, are more like insuring homes. Some homeowners think that they can insure their watercraft with their homeowner’s insurance. However, this often will not cover a watercraft, especially if it has a larger motor. However, there are underwriters that will allow for homeowners to bundle their home coverage with their car and watercraft coverage.
Like with auto insurance, the watercraft policy will protect policyholders if someone is injured on the watercraft. One advantage of watercraft coverage is that boat owners will often be able to save money by suspending coverage during periods when the watercraft is not in use. However, if the watercraft is used during this period and the boat is damaged, the boat owner may be forced to pay for the damages.
Unique Features of the Avionics Industry
Aircraft have their own underwriters. However, there are some forms of aircraft that are considered difficult to insure. Obtaining coverage for a plane usually requires that the owner obtain some form of training and the harder to insure aircraft require more training. There are also sometimes age restrictions and recurrent training requirements. The aircraft that are difficult to insure include older aircraft, aircraft with parts that are not available, unique aircraft, experimental planes and rare aircraft.
Differences When Using Brokers
Avionics insurance is also different from many other types of coverage because there are less than 10 underwriters. When a broker contacts an underwriter, the underwriter will only release one quote to the first underwriter that contacts them. This reduces the competition between aircraft insurance brokers.
The rules for insuring an plane or watercraft will also vary from company to company. It is important to understand all aspects of insuring highly expensive and potentially risky assets.