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Boat Insurance

Guide to Boat Insurance


Boat insurance is a special type of motor vehicle coverage that is designed to specifically protect boat owners from the financial consequence of damage and/or injury that can happen anytime while boating. In some cases, like car insurance, boating insurance is legally required.

Who Needs Coverage?

After a home, a boat is likely a person’s biggest investment he or she will ever make and, if the boat owner has no insurance, it would likely take years to repair any damage to this investment if loss were to occur. Personal items stowed on board can also be valuable and very expensive to replace out-of-pocket if lost in a boat accident. Good boat insurance coverage can be the answer.  At the very least, boat owners would likely benefit from the purchase of coverage that is for bodily injuries and property damage. This will include injuries that occur on the boat and injuries or deaths that might happen to other related individuals related to the operation of the boat.

Policy Aspects

Boat owners are wise to learn the components of their boat insurance. For most boat owners, coverage is not designed to be in effect for the entire year, usually being less needed during the off-season in which a boat is likely put out of the water. Additional coverage is also available for any damage that might happen during these off-season times.

How the Insurance Works

Boat operators can carry boat insurance coverage for protection from loss due to hurricanes, theft, capsizing, fires and more. The proper insurance coverage can protect boat owners from huge financial costs. Keep in mind that companies will likely deny coverage when the boat owner is underinsured. The insurance provider and the boat owner agree to a contract that outlines the policyholder’s agreement to pay his or her premiums in exchange for the provider’s guarantee to compensate for any covered losses. It is important to note that many lenders will require proof of coverage before they provide a loan.

Kinds of Insurance Policies

It is important to fully investigate the boat insurance policy details before buying to avoid any misunderstanding or confusion in future. For instance, a policyholder should know of that which a company will not cover due to poor maintenance. Policy coverage can include:

Property Damage – Any permanently attached equipment on one’s boat, like anchors, masts, anchors, oars, and fuel tanks are examples of what’s protected. This coverage does not include any personal property on the boat and items that might be damaged during a sanctioned race event for example.

Medical Payment- A policy will normally provide coverage options for medical care for those injured while operating the boat.

Personal Liability- This will cover the policyholder in the event of a lawsuit with claims for bodily injury or property damage caused by the usage of the boat.

Insurance Benefits

Other insurance coverage that a boat owner may wish to consider include personal item coverage and uninsured boat owner protection. A boat owner can also be eligible for a myriad of discounts due to such aspects as up-front full payment of a policy, an accident-free record, homeowner or multi-boat policies, safe operator status, and safety course completion (and more).

Additional Coverage

Boat owners are advised to determine when, where and how frequently they might be using their boat when shopping for the right policy. Some coverage will only protect boats used on freshwater bodies, while others can be engineered for craft that move out beyond certain distances off the coast. Owners are smart in seeking the many methods to lower costs like a boat safety course or via the installation of safety extras like an engine kill-switch, and so on. Speak with an insurance professional today for guidance in determining the most appropriate and best boat insurance policy that fits your circumstances.