*Please understand that all the content mentioned in the above video are based sololy on the current market status and our personal experience in this field of service. For further enquiries regarding your purchase of a Pleasure Craft Insurance, please approach a professional financial adviser or contact us for more details. Thank you!

Hi! Welcome to Raffles Provident, where your interest is our utmost priority. You probably have known about health insurance and car insurance, but do you know that there are insurance policies for pleasure crafts (boats) too? In today’s video, we will be sharing with you some general information on pleasure craft insurance.

Pleasure craft insurance policies basically cover for physical damages and liabilities that your boat experiences. Physical damages can be the accidental loss and damage to your boat, while liabilities refer to your legal obligations to the third parties involved. Typically, there are two common types of pleasure craft insurance.

Third-party coverage covers the financial cost of any damage you might have accidentally caused to other individuals, boats or even property.

On the other hand, Comprehensive coverage covers both third party liability and first party losses. This means that it also protects your personal financial loss in the event of an accident. 

As with all other kinds of insurance, by purchasing the right pleasure craft insurance, you can rest assured that you are financially secured in the event of an accident.

Pleasure craft insurance is important for pleasure crafts, as it is for car insurance being important for cars. This is because it is required by the Law for the owner of a pleasure craft to purchase a pleasure craft insurance, similar to how owners of land vehicles. If a vehicle insurance is not purchased, it could potentially put you at risk of suffering heavy legal penalties.

Now that you know the importance of having the right pleasure craft insurance, what are the factors that one should consider when purchasing the most suitable pleasure craft insurance?  

As many of you know, the first and most important factor in selecting insurance is to identify the financial coverage that the plan can offer. Fortunately, most comprehensive boat insurance plans in the market are able to cover damages as high as your insured value preventing you from suffering major financial losses. Additionally, you have to pay close attention to the premium that comes with the insurance. The premium is dependent on many factors and so, we will discuss this topic in the later part of this video.

Apart from the premium and the coverage, we highly recommend you to know your insurer well. As each insurer varies in financial strength, products and support offered, your customer experience will depend on these factors. One effective way to identify suitable insurers is by checking out their financial strength ratings provided by reliable and reputable agencies like Standard & Poor’s, Moody’s and Fitch.

And for our final tip, we would suggest you look through the insurance contract closely and fully understand the clauses involved. Based on these clauses, the amount you can claim in the event of an accident may vary, so be careful and attentive to these details. 

In fact, when insurers underwrite pleasure craft insurance, there are many other factors that are taken into consideration. For example, desired insured value, type of boat, age of boat, previous boat history and more. From the current market status, we can see that having a third party coverage plan is a mandatory requirement set by MPA, which can cost minimum a few hundred dollars per annum.

Comprehensive plans, being a more extensive plan than third party plans, will take more factors into consideration making it slightly more expensive than the basic third party coverage. Therefore, you might want to consider carefully on how much you plan on insuring for your boat because a comprehensive plan might cost more but it comes with a more complete coverage as compared to just the basic third party liability plan.

While we are on the topic of pleasure craft insurance, I would love to take a moment to share with you our insurance services. We are proud to say that we are the most experienced local agency in offering pleasure craft insurance. On top of that, we are equally confident in our customer service with strong positive ratings and reviews from our clients. Therefore, we are looking forward to offering you our insurance services at competitive rates!

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