Whether you already own a boat or are thinking of getting one there are some things about boat insurance that you should know. Sailing off shore in and enjoying the sun and sea breezes is the thing to do on a nice day, or maybe you prefer to race around the lake pulling a skier. However, you choose to enjoy your boat is your business, but like anything else, you must make sure you’re covered if anything unexpected should happen. So how can you insure your boat?
The Insurance Information Institute has provided and overview regarding what kind of insurance policies exist and how they can cover your boat. For the most part, the size, cost, and type of boat will dictate how much you pay for coverage and what benefits you receive.
Small boats like canoes, small sail boats and small power boats with light horse power. According to the Institute, these 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.
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.
Bigger, or faster boats will need to be covered by a separate policy. Your Homeowner’s policy will most likely not cover your larger or faster boat as the liability and value increases. 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.
Whichever kind of boat you have or intend to get, 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.
