Boating offers numerous fun experiences, such as cruising with friends, fishing, and enjoying watersports. However, purchasing the right boat insurance policy is important to protect your passengers and investment while on the water.
Hull insurance covers damages caused by sinking, fire, storms, theft, and collision. Boat liability coverage pays for injuries to others and damages to other boats, docks, and piers. Hull insurance is similar to collision and comprehensive coverage in auto insurance. It can also include equipment like dinghies, sails, outboard motors, and other boating essentials. However, the cost of boat insurance varies based on several factors.
The big question everyone asks is. What factors are used to decide my boat insurance premium?
These factors include the boat’s length, type, usage, age, horsepower, current value, condition, length of ownership, whether the vessel is used as a primary residence, and where you operate it.
The types of coverage can influence your policy’s premiums. Larger vessels typically incur higher premiums. Discounts may be available for completing safe-boating courses or having a good driving record.
There are two kinds of boat insurance: Actual Cash Value policy and agreed-value policies. Actual cash value policies pay up to the boat’s current value, factoring in depreciation. In contrast, agreed-value policies cover the boat’s value at the time of policy creation without depreciation.
Almost any vessel can be insured, including personal watercraft, dinghies, yachts, sailboats, and inflatables. If you lease your vessel to a boat club, you can also get a personal boat policy.
Like car insurance, boat insurance provides financial assistance for repairs in the event of an accident. Property coverage protects against theft or sinking, whether the boat is on land or in water.
So, What exactly does boat insurance cover? Understanding this is key to being well-informed and knowledgeable about your policy.
Liability coverage handles repairs for damages caused to other boats or property and covers legal fees from boating accidents.
Medical payment coverage can help with medical bills for injuries sustained while operating or onboard your watercraft.
Uninsured watercraft coverage helps with repair costs if an uninsured boater causes damage. It also covers medical bills for you and your passengers. However, not all states offer this coverage, so check with your insurance agent.
An optional “all-risk” policy covers any risks not omitted in the policy, with usual exclusions like wear and tear or weather-related damage. Each boater’s insurance policy may need modifications or endorsements for optimal protection.
Now we’ll discuss what boat insurance does not cover
Consider additional coverages like towing, boat trailers, custom equipment, and special trip endorsements. Most policies don’t cover wear and tear, but consequential damage coverage can be added for losses resulting from it.
If boating outside U.S. waters, notify your insurer for a special trip endorsement. Most boat insurance policies will only cover your boat while it’s in U.S. territorial waters.
Competing in boat races often requires special coverage. Speak with a specialist about adding liability insurance to cover potential collisions during competitions.
Boat policies typically cover named operators. Allowing someone not listed on your policy to drive your boat could mean you aren’t covered for any damages.
Infestations and faulty machinery due to improper use or lack of maintenance are usually not covered. Proper storage and transport are essential; improper practices may void coverage for resulting damages.
Always keep a copy of your insurance policy onboard. In an accident, ensure everyone’s safety, administer first aid, and protect the boat from further damage. Document all information before leaving the scene. Notify your insurance company immediately after an accident. Taking these steps helps ensure your claim isn’t denied.
Do You Have Questions Regarding Your Insurance Needs?
Let our knowledgeable team of award-winning insurance agents help. We provide a wide range of affordable insurance solutions for people from all walks of life. Whether you are seeking insurance for your home, auto, business, life, or health, our team of licensed insurance agents will help you find the best coverage for your specific needs at the best possible rates.
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