As Americans kick off their Fourth of July celebrations, Schlitt Services vice president and Trusted Choice board member Jeffrey M. Schlitt joins Wealth! to break down what you should know before renting a boat this summer.

Schlitt stresses the importance of insurance, encouraging you to opt for coverage on physical damage and liability, explaining, “If you’re ever in an accident and you’re held liable, you want to make sure that an insurance policy can step in and provide coverage for you rather than your own checkbook.”

He explains that every boat rental policy is different, so be sure to read carefully through any agreements you sign. He adds that purchasing additional insurance waivers is always a good idea as it “picks up gaps that you may have in your own coverage, such as if you damage the boat and they can’t rent the boat, they have loss of income for that boat not being rented… So they can come back and potentially charge you for those.”

Schlitt also encourages seeking out independent insurance agents, as they have “access to many different markets and can work with you to come up with a plan.” When bad weather strikes, you can work out a plan to secure the boat or take it to an alternate location and perhaps even receive reimbursement.

This post was written by Melanie Riehl

Video Transcript

If you’re heading out on the water on this Fourth of July holiday, have you considered all the financial risks involved?

Our next guest has the tips that you need to make sure you’re properly covered with boat insurance for more.

Let’s welcome in Jeff Schlitz, who is the Schlitz Services vice president and trusted choice board member, Jeff.

Great to have you here.

So if people are perhaps taking their boat out or maybe even renting a boat, perhaps, let’s start with those who own or just got a new one to take out on the water for some water crafts and sports.

What should they remember to get covered?

Right.

Well, thanks for having me today.

I appreciate the uh the time with you.

Uh really um the, the scope ranges.

I mean, if, if you purchased a boat and maybe you have a lien on the boat, obviously, there’s gonna be a uh a bank involved who may want you to have coverage on the boat.

Um So there’s that and then as well as really, um not only damage to the boat, the hull and the motors, the physical damage, but the liability, I mean, right, now, especially it is really busy on the waterways and there’s a lot of people, um, that may or may not have a lot of experience boating.

So, um, you know, if you’re ever in an accident, uh, and you’re held liable, you wanna make sure that an insurance policy can step in and provide coverage for you rather than your own checkbook.

Story continues

Now, say you’re renting a boat for the weekend or just for a day perhaps, uh I say the weekend, but uh the holiday falls in the middle of the week this year.

So anyway, say you’re renting a boat, what should you make sure that you’re looking for in insurance that could cover your time renting that boat, right?

I mean, a lot of people now make uh these reservations with credit cards and sometimes they think that a credit card is gonna provide insurance for this sort of thing.

Um Really when you are signing to rent a boat, uh all the agreements out there with the rental boat companies um are different.

I personally um recommend to my clients um since I don’t know what you’re signing and many times um when you’re renting a boat, you don’t know what you’re signing if the boat company offers insurance.

Um I recommend purchasing that um, additional waiver from them because many times um that picks up gaps that you may have in your own coverage such as if you damage the boat and they can’t rent the boat, they have loss of income for that boat not being rented, um, diminished value in the boat.

If um, if it wasn’t an accident, you’re liable and there was damage to the boat.

That boat is not um as valuable as it was before the accident.

So they can come back and potentially charge you for those.

So those, those are some things to consider uh when you’re out, uh renting boats, uh and signing agreements to, to take care of these boats.

Jeff, I only got about 30 seconds left here.

We are tracking some severe weather systems as well.

You know, how should policies change or kind of be brought up to the current climate if you will.

Uh As many owners are trying to best figure that out.

It’s a great question.

Um First off deal with an independent insurance agent who has access to many different markets and can work with you to come up with a plan that works for you, uh specifically with, with when storms are approaching.

Um You gotta have a plan um either secure the boat where it is uh take the boat to a, to a alternative location if you can.

Uh and sometimes um some policies can uh help reimburse you for taking that boat out and getting it um out of the way of a potential storm.

So there’s, there’s a lot of different options, but planning ahead is key Jeff, great advice here and Thanks so much for joining us.

Hope you have a great holiday.

Jeff Schlitt, who’s the slit services vice president?

Appreciate it.

Happy 4th, 4th.