Boat insurance is a critical component of owning a boat. It delivers financial protection in the event of an accident, theft, or other covered loss and can help you avoid financial hardship if you're ever involved in a boating incident. In this article, we'll explain the basics of boat insurance and what you need to know to get the right coverage.
What Does Boat Insurance Cover?
Like auto insurance, boat insurance offers various coverage alternatives to assist in various situations.
Insurance for Boats
Property insurance protects your boat from theft, damage from accidents, and sinking. The coverage frequently applies to the boat, whether on land or in the water.
You can choose between actual cash value and agreed value, often known as replacement cost coverage if your boat is totaled or stolen. Your coverage will affect your costs and the amount the insurance company will pay in case of a claim.
Liability Insurance for Boats
If your boat injures someone in an accident or damages someone else's property, like another boat, your liability insurance will cover their losses. It may also refer to problems that your boat causes for other users, such as a large wake. Liability insurance also covers the costs of your legal defense if you are sued for a problem covered by the policy, such as a boating accident.
Insurance for Health Care
The medical payments policy will cover your medical expenditures if you or your passengers are wounded in a boating accident.
Protection against Uninsured Watercraft
If an uninsured boater strikes your craft, uninsured watercraft coverage pays your medical expenses.
Supplemental Boat Insurance
As a boat owner, you might need additional insurance for things like defense against:
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Towing
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Personal property
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Dock contract liabilities
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Fishing guide insurance
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Ice and freezing insurance
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Specialty equipment like fishing gear, and nautical luxuries like radar
It's also helpful to look into coverage for fuel spills or wreckage cleaning in case of a mishap on the water.
What Does Boat Insurance Not Cover?
Exclusions are an inherent part of every boat insurance policy. Common examples include damage from aquatic life, manufacturer's defects, poor boat design, corrosion, excessive use, and wear & tear from regular boat use.
What Factors Affect the Cost of Boat Insurance?
Where you live has an impact on the cost of boat insurance. In locations without beaches and with shorter boating seasons, boat insurance frequently costs less.
Other factors that influence boat insurance rates include:
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Age
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Condition
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Boat's valuation
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Length
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Engine
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Anchorage
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Boat's use location
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Boat owner's level of boating experience
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Owner's prior claims
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Boat's ownership history
Sometimes, an insurance company may also consider your driving history and if you've attended any safe boating classes.
Conclusion
Boat insurance is important to consider if you own a boat. Purchasing a policy provides financial protection in case of an accident, theft, or damage to the boat and equipment. Understanding the basics of boat insurance, such as the types of coverage available and the conditions and exclusions included in the policy, can help you make an informed decision when selecting an insurance policy.
As with any insurance, it is important to shop around and compare prices and coverage before making a final decision. Doing so can protect yourself and your boat and enjoy the peace of mind of being properly insured.
Brand and Britt Insurance is an independent insurance agency offering auto, car, home, life, business, and employee benefits insurance. Contact us today