Benefits of Boat Insurance
Summer is only a few months away and one of the most important things you can do for a worry-free summer on the water is to have boat insurance. Boat insurance is not legally required but is always a good idea; marinas and inland waterways require you to have it. Your home insurance usually has limited coverage for a small, non-engine powered watercraft. Engine-powered watercraft and larger boats and are generally not covered by home insurance. It is not enough to protect your investment or cover your costs in case of any liability issues. Boat insurance is available as an add-on to your home insurance.
Why do you need to insure your boat?
You need boat insurance because it covers:
- injury to others and damage to their property.
- Loss of or damage to personal property on your boat.
- Unexpected damage to your boat from an accident like striking a submerged rock and recovery costs if your boat sinks.
In order to determine how to insure your watercraft, your insurer will need to classify it. Boats are often insured by the length of the boat as well as by its type – fishing boats, sailboats, cruisers and motorboats. Once this is done, your insurer will then be able to work up a quote for you.
Types of coverage
You can choose to cover only injury to a third party or damage to their property or to cover almost every possible type of loss. You should also cover damage to your boat and standard boat insurance also provides death benefits, medical benefits, and coverage for personal effects.
Liability
The most important reason for getting boat insurance is liability coverage. It protects you in case someone is injured, or their property is damaged and pays for your legal fees, their medical expenses, and repairs to their property. This is the minimum type of coverage you should have.
All risk
You may also need coverage to your boat from fire, accidents, and theft. All risk insurance covers anything that can happen to your boat except for circumstances specifically excluded in your policy, such as wear and tear and damage from freezing.