Whether you’re thinking of getting or already own one there are some things about boat insurance that you should know. Enjoying the sun and sea breezes off shore is a great thing to do on a nice day, or maybe you prefer to race around the lake pulling a skier. What you choose to do with your boat is your business, but sometimes the unexpected can happen and you must make sure you’re covered if it does. So here are some things you should know when it comes time to insure 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. The Insurance Information Institute has provided and overview regarding what kind of insurance policies exist and how they can cover your boat.
According to the institute, small boats like canoes, small sail boats and small power boats with light horse power 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.
Just remember that 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.
Your Homeowner’s policy will most likely not cover your larger or faster boat as the liability and value increases. Bigger, or faster boats will need to be covered by a separate policy. 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.
