It’s definitely boating season! When it comes to boat insurance coverage, understanding your options may help you make better-informed decisions to protect both your vessel and finances.
Homeowners insurance typically doesn’t cover boats when they’re off your property, or it may limit coverage to small boats, like canoes, with low horsepower (hp). Understanding the different types of boat insurance coverage is important to help protect your boat and safeguard your financial security. Here are some common coverage options you may want to consider.
Physical damage
This coverage may insure your boat against damage and loss caused by common risks, such as sinking, fire, storms, theft and collision. The property covered can vary, but the policy typically offers coverage for the hull and other components like:
- Motors
- Anchors
- Furnishings and fittings
- Extra fuel tanks or batteries
- Onboard safety equipment, such as flotation devices and fire extinguishers
A boat trailer may or may not be covered, depending on the policy.
Liability coverage
In the event of a covered loss, liability coverage may help protect you from legal claims and financial losses if your boat causes damage to other boats, docks, structures or injury to others. Damage caused by direct contact with your vessel or situations like large wakes may be included, along with coverage to help pay for resulting settlements and legal fees.
Optional coverage
Depending on your boating needs, you may consider adding additional coverage to your basic policy, such as:
- Reimbursement for boat rental costs due to a covered loss
- Coverage for your boat while rented to others
- Liability coverage for rented boat usage
- Uninsured and underinsured boater coverage
- Coverage for equipment, such as fishing gear (often excluded from standard hull coverage)
When selecting a policy, it’s important to determine if it may provide coverage for the replacement cost or actual cash value (ACV) of your boat. In the case of covered claim, this choice will help determine how much you may get paid if your boat is a total loss.
Buying boat insurance may help you be prepared when the unexpected happens. Ask us about boating safety ideas and which coverage options may be best for you. Our team would be honored to help!
Happy Boating & Stay Safe!
~ Sharlene
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