Watercraft and Boat Insurance: A Complete Guide

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Like your home, your boat and watercraft also need insurance. Some homeowners will have insurance policies that include coverage for smaller watercrafts.

However, many homeowners will have plans that provide limited to no coverage for boats and watercrafts.

They do not factor in environmental disasters, salvage work, wreckage removal, and other such marine-based perils. Here, we will discuss everything you need to know about watercraft and boat insurance.

What is Watercraft and Boat Insurance?

Boat insurance will provide financial protection in the event that you are injured or if your boat is damaged while you are operating it. If your boat or vessel has an engine with a horsepower of at least 25 miles per hour, then you will be protected in the event of damages.

If your boat is involved in a collision with another person’s boat and/or property, then your boat and watercraft insurance will help replace or repair their boat and property.

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What are the Factors that Affect the Insurance Premiums?

Your insurer will assess a wide array of factors before deciding on whether or not to offer you a policy. For example, the age of the boat and its mileage will affect your premiums. The type, size, and length of the boat may also influence your premium amount. You may require a different type of coverage for, say, a massive yacht compared to a tiny fishing vessel.

A boat that has a high value on the market will likely require greater coverage when compared to a low-value watercraft. Where your boat is situated as well as where you intend to use it will also affect your premiums.

For example, sailing on the open ocean for several hours, or even days, will be seen as a greater risk than boating on a nearby lake for an hour. The maximum speed and horsepower of your boat’s engine may also influence how much you pay.

Where the boat was manufactured may be a point of discussion with your insurance company, and they may also assess the current state or condition of your vessel.

The intended use of your boat will be discussed, as different crafts are designed and manufactured with different intentions. Where you store it when not in use may also influence your premium amount. Even ownership and primary residence details may be evaluated, so you need to be prepared before you make the call.

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What does Watercraft and Boat Insurance Cover?

Your boat insurance will protect watercrafts and boats from certain risks. Liability coveragewill be activated in the event that your boat causes damage to other structures, docks, or boats, or if you injure someone with your craft.

You should obtain uninsured watercraft coverage in the event that you need to deal with someone who does not have their own insurance coverage. Any medical payments and bills that involve you and your boat will also be covered.

Expenses related to damages to your boat, which may include damage to its trailer, hull, motor, sails, furnishings, and equipment, will be covered under your boat and watercraft insurance.

You will be covered for a new replacement if you own a new boat, and you will be protected from fuel spill liability in the event of an accident. Wreckage removal and salvage coverage will also be provided.

Watercraft protection measures should be considered in order to protect you and others in the event of an accident.

Is Boat Insurance Necessary?

Accidents do happen. Having comprehensive boat insurance will potentially save you tens of thousands of dollars that would have gone towards your boat restoration.

You may have the option to combine different coverages in order to save money. For example, if you already have homeowners and car insurance, then you may be able to add your boat policy to the mix in order to enjoy a multi-policy discount. Also, if you have no loss credits, and have successfully passed a boat safety course, then you may qualify for additional discounts.

In sum, boat insurance will help protect your boat or watercraft from physical damage, and will also protect you in the event that you damage another person’s boat or property.

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Better Safe Than Sorry

Whether you own a large yacht or a small fishing boat, having the best boat insurance in the market will help protect you in the event of theft or an accident. However, not all insurance policies are created equal.

You need to have a candid discussion with your insurance provider in order to determine what will be covered with your policy. You may have the option to add additional coverage, which may be of great use to you depending on what you will be using your vessel for.

For instance, you can add multiple towing options, both off and on the water. Freeze and ice coverage can be added if you have to deal with cold winters every year. You can also add coverage for your personal property, and include coverage for your fishing equipment if you enjoy going fishing.

Disappearing deductibles can be added to your policy. The coverage that you need will depend on what you intend to use your boat or watercraft for, as well as how often you plan on using your vehicle. In sum, boat insurance will protect you and your boat in the event of theft, an accident, or an Act of God, such as a flood, hurricane, or tsunami.

If your boat causes damage to another person’s boat and/or property, you will be covered. You will also be protected in the event that you accidentally injure or cause the death of another person while operating your boat or watercraft.