You purchased a watercraft to provide years of personal enjoyment—ensure your enjoyment by choosing the right insurance protection.
The size, type and value of the craft and the water in which you use it factor into what type of insurance coverage you need. As with any insurance policy, make sure you understand exactly what perils are covered and what your policy limits are.
The Basics of Boat Insurance
A small vessel, such as a canoe, small sailboat or other un-motorized boat, is typically covered under the personal property portion of your homeowners insurance policy.
If you own or are purchasing a larger, faster vessel, or jet skies you’ll need a separate watercraft insurance policy. A typical watercraft insurance policy is designed to protect your boat, motor, equipment and passengers. It affords similar coverages to those you typically have for your car including:
- Physical Damage: Physical damage coverage insures your boat, motor, boat trailer, boat equipment (anchors, oars, fuel tanks, life jackets, dinghies, tools, etc.) and other personal property against theft, accidental loss or damages.
- Liability: Two principal liability coverages are included:
- Personal Liability: A boatowners insurance policy provides protection for legal liability and pays, up to the limit of your policy, the legal obligations imposed upon you due to an accident resulting from the ownership, maintenance, or use of your watercraft, including bodily injury, property damage and legal defense.
- Medical Payments: This pays medical expenses, up to the limits in the policy, including the insured’s boating-related medical expenses from an accident arising out of the ownership, maintenance or use of the boat.
Additional Coverage Options
For added protection, consider the following additional coverage options:
- Flooding: It’s important to note that flood damage may not be covered under your basic boat policy. Depending on the area where you use your boat, a separate policy could be needed to cover flooding or storm damage. Be sure to check with your insurance provider to find out if you’ll need a separate policy for flood coverage.
- Reasonable Repairs: Covers repairs incurred to protect covered property from further damage.
- Emergency Service: Pays for reasonable costs that you incur resulting from specified emergency service to your boat, motor or boat trailer.
- Wreck Removal: Pays the reasonable expenses you incur for any attempted or actual raising, removal or destruction of the wreck of your watercraft when damage is caused by an insured loss and removal or destruction is required by law.
- Umbrella Liability: Provides additional boat insurance coverage across the board for home, auto and watercraft.
Boat insurance policies generally provide broader liability protection than a homeowners policy. However, depending on the assets that are at risk, boat owners may also consider purchasing an umbrella liability policy, which will provide additional protection.
Top Ways to Save on Boat Insurance
- Diesel-powered craft, which are less hazardous than gasoline-powered boats as they are less likely to explode reducing both your risk and insurance premium
- Complete an approved safety course through the Coast Guard, U.S. Power Squadrons, Red Cross or other state-administered course
- Ask about a multi-policy discount
- Anti-theft devices
Boat insurance is a crucial aspect of boat ownership that shouldn’t be overlooked. Understanding these little-known facts will help ensure that your coverage meets your needs and expectations. For more information on watercraft coverage and other insurance products, visit our locations page to find an office near you or give our team a call at 866.374.5084.
