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Boat Insurance

Do Boat Owners Need Boat Insurance?

Owning a boat can lead to weekends of outdoor fun. But before the fun begins, it is a good idea to get boat insurance. There is a chance your home insurance may offer coverage for boats, but the scope of coverage would be narrow.

Liability coverage for a boat provides financial assistance in the event of damages and injuries that take place on or around a boat. Even if you are careful, accidents happen, and coverage helps with medical expenses or repair costs. Accidents may involve other boaters, swimmers or water skiers, so it’s important to protect yourself. Property damage can include other boats, a dock or even environmental issues, such as a fuel spill. Many no-fault clauses provide coverage for passengers injured onboard. In short, insurance coverage keeps you from paying large sums of money out of pocket.

An agreed value policy defines the value of the boat when you purchase the policy. If total loss occurs, then depreciation does not affect the settlement. On the other hand, an actual cash value policy pays out the depreciated value of the boat at the time of the accident.

An all risk policy provides the most extensive coverage, but it does exclude certain situations. Normal wear and tear, manufacturer and design defects or animal damage is usually not covered. However, an all risk policy usually does include: specialty equipment, consequential damage, towing, and salvage coverage.

If you own a boat, then you probably plan to use it. If not often, then you still have to park it. You should consider the benefits of boat insurance. Become familiar with the policies, and find what you need and can afford. You can own your boat without worrying about what happens in the event of damage.