– Life Insurance
– Flood Insurance
– Cheap Insurance For Young Drivers
– Auto Insurance
Alright, in the course of this post, we’ll attempt to cover the following areas;
1. What Is Boat Insurance?
2. What boat insurance covers
3. How boat insurance works
4. FAQs about boat insurance policy and others.
Listed above and a host of others are the various things this post set out to cover. We’ve decided to arrange this post in this manner to enhance ease assimilation and faster reading. We’ll be brief as possible as we could so that nobody will be bored while reading this post.
What is boat insurance? To answer that question, let me quickly say that boat insurance covers you in the event of a loss or damage to your boat. It covers most watercraft with motors, including fishing boats, pontoon boats, paddle boats, leisure crafts and yachts. Boat insurance does not usually cover canoes, kayaks or personal watercrafts (PWCs).
For small watercrafts, you may find some limited coverage under your homeowner’s policy. You may also be able to add a special endorsement or buy separate coverage.
What boat insurance covers
I believe some of us might have been asking this question; what does boat insurance cover?
Well, your boat insurance policy may include the following:
– Collision damage: Includes repair or replacement of your boat, but may or may not include clean-up of wreckage unless you purchase optional additional coverage.
– Property damage liability: Covers damage you might cause to someone else’s boat, a dock, or other property or structures.
– Bodily injury liability: Covers injury you might cause someone while using your boat; includes medical bills, lost income, pain and suffering, and legal expenses.
– Comprehensive: Provides compensation if your boat is vandalized, stolen, or damaged in an incident other than a collision.
Additional coverage options: Coverage for medical payments, fishing equipment, oil spills, personal property and roadside assistance, as well as damages and injuries from accidents caused by boaters who are uninsured or underinsured.
Bear it at the back of your mind that the amount of compensation you receive for a claim depends on a few things, including your deductibles, limits and whether your boater’s insurance covers your boat’s actual cash value, replacement cost or agreed upon value.
How Boat Insurance Works
Here is a comprehensive guide on how boat insurance works. Interestingly, worthy of note is the fact that when you buy boat insurance, you must decide on the amount of coverage you need for your boat, the deductible (maximum out of pocket expense per claim) and the types of coverage you need.
In the event that you have an accident, experience a theft, or have another loss that is covered under your policy, you can file a claim and receive a payment covering the loss.
As an example, if you were in an accident with another boat that caused serious damage to your vessel, one of the following things would most likely occur, depending upon the insurance coverage you and the other boater own and the laws in your state:
– If you were at fault, your boat liability insurance would cover the damage up to the limits of the policy.
– If the other boater was at fault, his coverage would pay for your damages, up to the limits of his policy.
– If the other boater was at fault, but did not have boat insurance, or did not have enough to cover your expenses, uninsured/underinsured boaters coverage could cover the damages (if you have that coverage in place).
Cost of Boat Insurance
As I’m writing this post I could sense some person asking the question; how much does boat insurance policy cost? To answer this question is one of the reasons why we’ve taken the time to prepare this article.
That question is a very fine one and indeed deserves a better answer. Fortunately, the cost of boat insurance varies depending on a number of factors. The factors are as listed below:
– The state you live in
– The type, size, and age of the boat you wish to insure
– The size of motor and how it is powered
– Whether you are using it on inland waters or the open seas
– Whether you have selected additional coverage options
For those of us that want to know the amount that this form of insurance cost, it’s advisable you contact a registered insurance company in your state for the actual amount of boat insurance.
According to trustedchoice, in general, boat insurance can range anywhere from as little as $75 to as much as $500 per year. Insurance companies also offer a number of discounts. These discounts can give you a price break under certain situations.
For example, you may be able to elect a layup discount if you don’t use the boat year-round, or a discount for boating in fresh water instead of salt water.
You may also qualify for discounts if you’ve taken a boating safety course, or a good driving discount if your boating record is unblemished.
Insurance companies vary in the discounts they offer, so be sure to ask an independent agent to compare quotes and options from multiple carriers on your behalf.
How to Get Boat Insurance
There are several ways to buy boat insurance. You can easily get quotes online that will help you find a policy you can afford. You may have questions, special circumstances, or a highly customized or top-dollar boat to insure, and in this case you may opt to speak directly to an independent agent in a registered insurance company.
Note that your independent agent can shop around, compare options and rates from numerous insurance companies and help you to make the most informed decision.
One of the vital things you need to know about boat insurance policy is whether the policy also cover passengers in the case of an accident. Well, boat insurance covers both passengers as well as the owner in an accident. Passengers on the boat are covered under the liability portion of the boater’s policy.
However, depending on the policy, this may or may not extend to water skiers you are pulling behind the boat. Be sure to work with a knowledgeable professional who can help evaluate your needs and risks.
Comprehensive Boat Insurance Coverage
Comprehensive boat insurance covers the theft of the boat itself. Personal possessions carried on the boat may or may not be covered, depending on the policy.
In view of this, it’s advisable for you to carefully review the comprehensive coverage of your policy to determine exactly what is and is not covered. If you plan to carry expensive fishing equipment or other items of value, you can purchase one or more additional “rider,” or policy endorsement, to cover those assets.
Till need more? Alright, here’re some of the frequentl asked questions and their corresponding answers about boat insurance and its coverage.
Boat Insurance FAQs
– Does Boat Insurance Cover a Blown Engine?
Boat insurance covers a blown engine under some circumstances. Check that with the insurance company issuing the policy. Many policies will cover a blown engine when the cause is a manufacturer’s defect, but not if is due to normal wear and tear.
Does Boat Insurance Cover Me if I Hit a Rock?
If you have comprehensive insurance or property damage coverage built into your policy, your boat insurance will cover collision with rocks, logs, and other marine obstacles.
Does Boat Insurance Cover Engine Damage?
Boat insurance sometimes covers engine damage. This varies from company to company as well as by policy. Some insurance companies have “machinery damage exclusions” while others do not; it often depends on the age of the motor.
Reimbursement may include replacement cost or be subject to depreciation.
Does Boat Insurance Cover Hurricanes?
Depending on the insurance company and structure of your policy, boat insurance
may or may not cover hurricane damage.
If tropical storms, hurricanes, tornadoes or windstorms are a concern where you live or travel with your boat, ask your agent about storm damage coverage for your watercraft.
How Much Boat Insurance Do I Need?
The amount of boat insurance you need depends on a number of factors, including the boat’s value, motor size, age, and how you use it.
For example, if you have a brand new high performance speed boat, you will need more coverage for bodily injury and property damage liability than if you buy a pleasure cruiser.
Is Boat Insurance Required?
Boaters often want to know whether they have to carry boat insurance to enjoy the water. The answer is that boat insurance
can be required for a variety of reasons. For example, some states require that you have liability coverage. Marinas may require you to have boat insurance in order to dock your boat there.
Additionally, if you take out a loan to buy a boat, the lender will most likely require that you purchase boaters insurance.