Auto insurance is the main type of vehicle
insurance that most people are familiar with, but many forget to include
their precious boats and other watercraft for protection. While you're
not likely to suffer an intersection collision, highway traffic accident
or even a mere fender-bender in your boat, it's still important to get a
good insurance policy to keep you covered.
Risks Associated with Owning a Boat
Boat insurance coverage is important for every boat owner to protect their watercraft from the potential risks that come with owning or operating a boat. These risks include:- Physical damage to your watercraft vehicle.
- Bodily injury suffered by the boat owner, passengers and anyone involved in a water collision or accident, and medical payments.
- Property damage in case the boat damages someone else's property. This can range from another person's watercraft vehicle to an actual home.
- A sunken or capsized boat.
- Adverse weather that can damage your boat.
- Fires or explosions.
- Boat theft.
- Lawsuits from damage or injury caused by your boat.
1. Getting the Right Boat Insurance for Your Use
The type of boat you own and its main form of use will affect your boat insurance requirements. A fishing boat might have additional equipment that requires coverage in your boat insurance policy than a smaller jet boat. Boat insurance companies might also ask whether your watercraft is used for inland or ocean boating. Make sure you are getting reasonable boat insurance coverage that will meet all of your boating needs. Here is a list of other things to consider when looking for the right boat insurance coverage:- Do you plan on having frequent fishing trips on your boat?
- Are fishing trips going to be for deep sea fishing?
- Are you planning to sail by yourself, or is your boat intended to carry multiple passengers?
- How many passengers on average do you plan on taking on boating trips?
- Will you need extra coverage for specialized equipment like navigational systems for deep sea trips, or fishing poles, lures and netting?
2. What to Look for in Your Boat Insurance Coverage
Make sure you closely examine the conditions and coverage of your boat insurance policy. You'll want to find out if your boat supplies are also covered in your boat insurance policy. Check and see if the trailer used to haul your boat is also included in your insurance. Find out if there are any discounts available if you pass a boating safety course. Also, look for any exclusions on your policy for the particular area you will be using your boat. And just like auto insurance, you need to understand what your liability limits and deductibles are. One final thing you should also determine is whether you will receive an "Agreed Value" or "Actual Cash Value" for your boat insurance coverage:- Agreed value may be more expensive, but has the potential to pay out more depending upon the stated value of your boat on your policy.
- Actual cash value is less costly, but your insurance company will only pay the actual cash value of your boat at the time of its loss. This means that depreciation is a major factor in determining how much you will receive for a total loss.
3. Get to Know Your Insurer
If you like the coverage provided by your current home and auto insurance company, you may feel inclined to ask them for a boat insurance quote. Often times, you can add a boat insurance policy to the rest of your coverage, which will keep things easy and convenient. However, your current insurance provider may not have the experience necessary to offer you the proper boat insurance coverage you need. Shop around, and don't be afraid to go with a separate company for your boat insurance if your regular insurance company does not commonly deal with marine related coverage. Here is a list of things a specialized boat insurance company should know how to deal with:- On-water towing costs and coverage.
- Fuel spill clean-up.
- Coverage for salvaging your boat in case it sinks and needs to be recovered.