July, 2020 | Boizelle Insurance Partnership

Why Do I Need Boat Insurance?

Typical boat insurance policies have two basic sections: physical damage and liability. Physical damage pertains to accidental loss or damage to the boat and its machinery. Various parts of the boat would be covered in this section of the policy: the hull and engines, sails, personal property, and any other operating equipment that is essential to the boat’s functionality.
Liability Coverage
The liability section of the policy is where you will find your coverages for your legal obligations to third parties, as well as damage caused to someone else’s property as a direct result of operating your boat. For example, let’s say you’re on your boat with your family and some guests. One of the guests on your boat slips and falls, breaking their ankle. The broken ankle would be considered bodily injury. Your policy would also cover you if someone died while on your boat.
Medical Payments Coverage
Another part of a boat insurance policy that is very important is your coverage for medical payments. If the event of an injury to another party, your Medical Payment coverage would cover the costs for any first aid treatments, an ambulance, hospital bills, and any other costs resulting from an injury on your boat. You’ll want to make sure that you have coverages for in place for when people are either coming aboard your boat or if they’re leaving. Always makes sure you have enough coverage on your policy to cover potential injuries to yourself or members of your family.
Uninsured/Underinsured Boat Coverage
When it comes to legal operation of a boat, liability insurance is not required. Therefore, in some instances, it is not unlikely that someone may not be carrying liability insurance on their boat policy. Uninsured/Underinsured Boat Coverage is meant to cover you for injuries sustained that are caused by an operator of another boat that doesn’t have liability insurance on their boat policy.
How Much Will It Cost to Insure My Boat?
This is not a simple question to answer. There are several factors that go into determining the cost of insurance for a boat. For instance, the value, length, and age of the boat; type of boat, type of engine, where you plan to use your boat, and claims history. Naturally, someone who has a long history of filing insurance claims for their boat is going to pay a higher cost than someone who has a clean slate because they are deemed to be higher risk. As is the case with other types of insurance, there are ways to lower the cost of your premium. The easiest, and perhaps most commonly used way is to select a higher deductible for your policy. This is the money you would pay up front out of pocket before your insurance policy kicks in. It may also be possible to include something called a lay-up period which is a period of time in which your boat is not being used (typically during the winter months). Your insurance underwriter may offer a discount for each month you are not using your boat.
Call our office to discuss your options for boat insurance today! We’re here for you!

Read more

Guaranteed Replacement Cost Gives You Something Other Coverages Don’t


Life is unpredictable and disaster can strike at any moment. Insurance provides you with peace of mind knowing that if something unexpected happens, you’re going to be okay. You won’t face financial ruin. Determining how much it would cost you to rebuild your home can be a giant headache.

What is Guaranteed Replacement Cost?

Guaranteed Replacement Cost ensures that no matter how much it costs to rebuild your home in the event of a claim, your insurance policy will cover you.

Why should I buy Guaranteed Replacement Cost coverage?

For many people, buying a home will be the biggest investment of their lifetime. So, it makes sense that they’d want to do everything in their power to protect that investment. It’s actually not uncommon to think that protecting your home with enough insurance coverage costs more than the home itself. The reality is that the insurance company is not insuring your home with the idea of buying it from you. Rather, the goal is to insure your home with enough coverage in case an unforeseen event happens. So, instead of thinking about what you paid to purchase your home, think “How much would it cost if a builder needed to completely rebuild my home?”

The most important thing to remember about guaranteed replacement cost is that this coverage gives you peace of mind, knowing that no matter how bad the damage to your home is, even if you have to rebuild from the ground up, your insurance will cover you.

As a Homeowner, Do I Have Choices as to What Coverages I Want?

Yes. In the insurance business, Guaranteed Replacement Cost is only one option you have for coverage as a homeowner. Listed below, you will find a detailed breakdown of some of the differences between these coverage options.

Replacement Cost vs. Guaranteed Replacement Cost

Guaranteed Replacement Cost offers something that the other coverages do not: peace of mind. This means that no matter how severe the damage to your home is, your policy will cover you. Period. Replacement cost is a little different in that it has a specific limit of coverage. This coverage amount is listed on your policy’s declarations page. Your insurance company will not exceed that dollar amount. This is why, as a homeowner, it’s essential that you are comfortable with the amount of coverage you choose to have on your homeowners insurance policy. If you do not have Guaranteed Replacement Cost, you will likely be responsible for paying the remaining balance out of your own pocket.

Example: Let’s say your home is insured at a replacement cost value of $350,000. In reality, it’s going to cost $400,000 to rebuild your home back to its original state before the loss occurred. You must find a way to pay the extra $50,000 or accept the realization that your newly-built home will not be the same as the one you had before.

Extended Replacement Cost vs. Guaranteed Replacement Cost

Again, Guaranteed Replacement Cost is going to give you the most coverage out of all of these options. Extended Replacement Cost basically gives you a little bit of extra wiggle room with regards to your loss.

If you have this coverage with Erie Insurance, that added protection sums up to 25% more than the listed dwelling amount as seen on your policy’s declarations page. For example, let’s say your home is valued at $600,000. With this particular coverage, your policy will give you an additional $150,000 to put towards replacing your home. As stated earlier, if it is determined that the costs to rebuild your home are exhausted before it restored back to its original state, you will be responsible for the remaining costs, whatever they may be. In the cases of a natural disaster, it is, oftentimes, determined that this coverage is not sufficient enough to cover the full cost of restoration. Guaranteed Replacement Cost is your best option in these cases.

Guaranteed Replacement Cost vs. Actual Cash Value

Actual Cash Value is typically going to be your least expensive option. However, it is commonly known and understood that the less something costs, the less value it has. This means that if you buy something cheap, expect less in return.

Actual Cash Value is a coverage that is for a pre-determined amount. No more. In addition, some insurance policies may factor in depreciation. For example, in cases where a home has an aging roof, you very well may end up with less money than your policy indicates. That’s definitely a tough situation to be in.

Guaranteed Replacement Cost versus Actual Cash Value is simply a case of most coverage vs. least coverage. Also, Actual Cash Value leaves you most at risk of having to pay out of pocket in the case of a catastrophic claim.

It is very important to remember that Erie Insurance does not offer Actual Cash Value for the dwelling on your primary home. This coverage is only available for secondary homes like vacation homes.

In short, Guaranteed Replacement Cost is always going to be your best option when choosing how to insure your home. No matter what happens, you will be covered!

Read more