watercraft - The CommonwellThe Commonwell

1. How do insurance companies come up with a rate for my boat?

You have to submit a picture of you driving it at full throttle through a no-wake zone and then the insurance company will send you a quote.

They have a carnival-style darts and balloons game.

You take the square footage of the boat, multiply that by its horsepower and divide that by the square footage of your home. That's your boat premium.

2. Do I have to cancel my boat insurance every winter?

Yes - you have to take it to the Ontario Port Authority in Toronto Harbour before the ice sets in and demonstrate proof-of-storage.

Your insurer calculates your premium for use and spreads it over 12 months even though your boat is only floating for a few of those months. You're only paying for the period of use. So there’s no benefit to cancelling.

Climate change means you may be using your boat all year round if we keep this up, so the answer is yes. Better get used to it.

If it is a wind-powered ice-boat, you actually have to renew it for winter.

3. Is it the law in Ontario that I must have boat insurance?

Only in certain parts of Ontario where even the toughest boaters dare not go.

Not yet. But you may need it to moor at a marina or to obtain financing. If your boat is over a certain size it may not be covered under your home insurance for liability if you were to cause damage or injury to another.

It depends. If your boat leaves the water completely when at high speed, the answer is yes even if the law says you don't have to.

Since when has provincial law been a barrier to pleasure for a water-loving hombre like you?

4. What is the difference between Actual Cash Value and Agreed Value?

Cash Value is what you'll get for the boat after your son rams it into the dock for the fourth time in a week.

Agreed value is what you and your neighbour determine the boat is worth during a high-stakes game of Scrabble at the cottage.

Actual cash value takes into account depreciation and that's what you get. Agreed value is a fixed replacement cost based on a contractual agreement regardless of depreciation.

A bird in the hand is worth two in cash-to-be-determined-at-a later-date.

5. Is my boat covered while I trailer it to and from storage?

If you drive on land the way you drive on water, the answer is "you've got to be kidding".

Only if you remember to pull the plug and raise the drive.

No. It's called An In-Transit-Exclusion Clause #32B and if you look really hard, you'll find it on page 41 of your policy. If you policy does not have 41 pages, you're definitely not covered.

Think of it two ways: 1) it falls off the trailer, or 2) it falls on someone as it falls off the trailer. Marine policies cover your boat if it falls off the trailer and your auto policy likely covers the liability if that boat falls on someone while falling off the trailer.

6. Are there any secrets to reducing the cost of my marine insurance?

Avoid accidents and live a pure life slowly.

Discounts are often available when you take a marine safety course. Otherwise, being claim-free has benefits.

Don't put it in the water. Seriously.

If you only drive it on weekdays, and don't drive it on weekends, it's like a weekday ski-pass for the locals in cottage country. Same lift, way lower cost.

7. What if I want to sail or drive my boat down the coast to Florida? Is it covered?

Not if you're beset by pirates who stream out of the arrrrbour to attack you.

Most marine policies have a maximum radius. Take the time to learn what that means for your boat. We doubt you'll discover that Florida coasts are covered, but you can always make adjustments.

The Canadian border actually has an electrified wall now and that's as far as you can go, or as far as your insurance covers you.

Yes - as long as you don't leave your bay or dock area.

8. What type of insurance are you looking for today? (Select all that apply)

SEASONAL FARM COMMERCIAL RESIDENTIAL AUTO

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Let’s say Alan here only thought to look into his insurance coverage after his new ski boat did an amazing nose turn right into the dock.

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