Have you always dreamt of buying a yacht? You may have attended boat shows, talked to boat dealers, decided on the style and the brand of the boat but you might not have been able to proceed with the financial realm of buying the boat. If you have considered a boat loan then read on for some boat finance basics so you can soon realize your sailing dreams.
There are three sources from where you can get a boat loan, the bank, your credit association and the financial service companies. Just like any other loan this loan also takes into account your financial background. The lending institution will assess your ability to afford the loan. You can opt for fixed rate or variable rate loans. If you are buying boats for professional purposes, then you will have to consider the income that you can draw from the use of the boat. In case you purchase it for personal use you need to take into account the expenditure for boat maintenance. A boat loan can be approved quickly and easily as compared to other type of financing. By financing your boat purchase you can afford a new, large and more powerful boat and can enjoy a better experience of boating.
After purchasing your boat, the next step would be to insure it against the usual hazards like damage, sinking, collision, theft etc. You can do this by getting boat insurance. Boat insurance coverage provides protection for you, your passengers and your boat.
Following are the points to be considered:
• It is not compulsory to have boat insurance, but owners always take boat insurance to help cover their large investment in the craft. Research about the financial stability of your potential boat insurance provider is necessary
• Type of boat, current value, and the current location of the boat can also affect the premium the boat owner should expect to pay.
• Ensure all items within the boat are locked away as your boat insurance may not cover you for items stolen that were left on the deck. This is also the case for motors.
• Get your boat insurance from a quality boat insurance provider. Choose a company with high standards and a strong reputation.
• Choose a boat insurance provider with a large network of boat insurance agencies, offices, claim centers, emergency services and helpful employees to serve you in your time of need.
• Check through the small print of the boat insurance cover to make sure you will be purchasing the cover you think you are. Most policies will cover for damage, sinking, collision, theft etc, but make sure this is indicated in the policy document.
• Although price plays an important factor but make sure you understand your policy; the lowest price is not always the best protection.
• Insurance policies will expect you to act responsibly and take care of your boat and not to act negligently.
Your boat is meant to give you years of enjoyment; ensure it by choosing the right protection. Happy boating!