Boat Insurance: What do you need to know?
When investing in something as expensive as a boat, you need to make sure it’s well protected. Boat insurance can be confusing to say the least. There are a few things to understand about boat insurance when shopping for coverage.
#1: Boat coverage on a homeowners policy.
Small craft may be covered under your homeowners policy or renters policy. Liability and physical damage coverage can often be added on boats such as canoes, small sailboats or small powerboats with less than 25 mile per hour horsepower.
#2: Large watercraft vessels need a boat insurance policy.
When deciding on boat insurance, several things must be considered. Not only do homeowners policies have limits on boat value or horsepower, but they also have limits on size. When you are insuring a large boat you will need a boat policy or insurance that offers a yacht program.
Typical boat insurance policies cover physical damage to the boat itself. They also cover property damage, theft and medical payments, each with different deductibles. Your insurer may offer additional, optional coverage for trailers and boat accessories.
#3: Boat policies come with limited coverage for personal property.
Coverage can be picked up from personal property coverage on the homeowners policy, even if the boat is on it’s own policy. However, additional deductibles usually apply. It’s safer, and more cost effective in the long run, to protect your personal property by increasing coverage on the boat policy.
#4: Savings on boat insurance
Some insurance companies offer a discount if you take a boating class or boating safety education course. You can also save money when bundling your boat insurance with the company you insure your home and auto policies with.
#5: Coverage options for boats
Depending on the coverage you select, boat insurance coverage provides:
- Physical loss or damage to the actual boat, including the hull, machinery, fittings, furnishings and permanently attached equipment. Physical damage exclusions might include normal wear and tear, damage from insects, mold, animals (such as sharks), zebra mussels, defective machinery or machinery damage.
- Theft of the boat.
- Bodily injury to persons other than the boat owner and family.
- Damage caused to someone else’s property.
- Medical payments for injuries to the boat owner and other passengers.
- Trailer or boat accessories.
- Towing in the event of an accident.
