What is Emergency Towing?

What does “Agreed Value” and “Actual Cash Value” mean?

Does an ‘all-risk’ policy cover my boat for any kind of damage?

What’s covered in the watercraft value of my policy?

Am I covered for hurricanes, tornadoes or windstorms?

How can I reduce my premium?

Does my policy provide coverage for towing?

Why are surveys required?

How do I set up a policy?

Do I need to insure my boat?

How can I make a change to my policy?

Note: For answers to questions not covered here we invite you to call 1-877-MARINE-3 or email us at info@marine3.ca and we will be happy to provide you with the information you need.

 

What is Emergency Towing?
If your vessel is disabled for any reason there is coverage up to $5,000 for the cost of being towed to the nearest repair facility, having fuel delivered to you or the cost of emergency labour performed at the site of disablement. Use of the Emergency Towing coverage does not affect your insurance premiums and no deductible applies

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What does “Agreed Value” and “Actual Cash Value” mean?
Agreed Value means that the amount paid in the event of a total loss is the amount shown on your policy without any deduction for depreciation. Partial loss claims are also settled without deduction for depreciation. Actual Cash Value means that depreciation is deducted from all claims, so the amount you receive is the current market value of your boat or damaged equipment at the time of the loss.

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Does an ‘all-risk’ policy cover my boat for any kind of damage?
Not always. An ‘all-risk’ policy covers accidental damage unless it is excluded on the policy (mechanical breakdown, wear and tear, etc). With any all-risk policy, you must check the exclusions to discover what is not covered. A ‘named perils’ policy covers only against damage from specific perils (fire, theft, etc).

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What’s covered in the watercraft value of my policy?
The watercraft value indicated on your policy includes the machinery, equipment and electronics used to operate and maintain the watercraft. It does not include additional equipment you may have on board like downriggers, fishing tackle, trailers, etc. These additional items can be covered under separate sections of the policy.

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Am I covered for hurricanes, tornadoes or windstorms?
Yes, there are no exclusions for hurricanes, tornadoes or windstorms. However, companies control their exposure to these types of claims by excluding areas that are prone to this type of weather. It is important to know the navigation limits of your policy as it will not respond to any claims that occur outside of this area. Extensions can be granted to cover the boat outside of the navigation area upon request by you.

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How can I reduce my premium?
Reviewing the policy with your broker is the first step to getting the best value. They can identify any optional coverage on your policy that can be removed, which may result in a premium decrease. They can also explain the value in keeping the optional coverage, which you may not have been aware of. Another option is to choose the deductible amount that is right for you. In many cases, increasing a deductible can result in a lower premium.

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Does my policy provide coverage for towing?
If your vessel is disabled for any reason there is coverage up to $5,000 for the cost of being towed to the nearest repair facility, having fuel delivered to you or the cost of emergency labour performed at the site of disablement. Use of the Emergency Towing coverage does not affect your insurance premiums and no deductible applies.

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Why are surveys required?
Surveys are a very important tool used by insurance companies to identify potential safety and maintenance issues your boat may have. It can also provide an up to date value of your boat, which is helpful in determining whether or not it is over insured or under insured. Surveys are a standard requirement in the boat insurance industry on older vessels, and can provide buyers of older model boats with peace of mind that they are making a good investment prior to purchase.

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How do I set up a policy?
The first step to setting up an insurance policy with MD Insurance is to obtain a no-obligation quote. This can be done online using the Quick Online Quote feature, or by calling our office toll-free at 1-877-627-4633. Once you are comfortable with the quote and coverage offered, all that is needed to activate the policy is the effective date, the hull identification number of the boat, finance information, if applicable.

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Do I need to insure my boat?
You are not required to carry boat insurance by law; however, it is a good idea to carry at least liability insurance to minimize the chance that you will be held personally liable for damage or injury to another person or their property. In the event that you are financing your boat purchase, most finance companies will require you to insure the boat before they will approve your loan.

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How can I make a change to my policy?
You can make any type of change to your policy by speaking directly with a boat insurance specialist in our office by calling toll-free 1-877-MARINE-3. This is the preferred way to make a change as our staff members are able to inform you how the change may alter your coverage or premium, and the change can take effect immediately.

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