If you’re thinking of getting a new boat or already own one, you should be thinking about boat insurance. There are some important things you should know about insuring your boat. There are various reasons people get boats. Maybe just to enjoy the sun and sea breezes off shore on a nice day, or maybe you prefer to race around the lake pulling a skier. Your boat and how you decide to use it is your business, but the unexpected can still happen and you must make sure you’re covered if it does. So here are some things you should know when it comes time to insure your boat.
In most cases it’s the size, cost, and type of boat that will dictate how much you pay for coverage and what benefits you receive. You can find more information at the Insurance Information Institute who provide an overview regarding what kind of insurance policies exist and how they can cover your boat.
Small boats like canoes, small sail boats and small power boats with light horse power can usually be covered under a homeowner’s or renter’s insurance policy. The amount of coverage is usually either $1,000 or 10% of the homes insured value and protects the boat, motor, and trailer combined.
It’s a good thing to note that with this kind of policy, you will have no liability, but you may have the option of adding liability as an endorsement to the homeowner’s policy.
A Homeowner’s policy will most likely not cover your larger or faster boats as the liability and value increases. For bigger, or faster boats you will most likely need to set up a separate policy for coverage. Watercraft such as yachts, jet skis, or wave runners need to have their own insurance policy that reflects either the actual cash value, or an agreed upon value.
Boats can be relaxing and a lot of fun, just make sure you are insured for the unexpected. Talk to an agent and get the right information so you can make the choice that is best for you.