Boat Insurance

What is Boat Insurance and Why do I need it?

Boat Insurance is designed to help protect your boat, your passengers, and other boaters from the high cost of accident related damages or injuries. It is a contract between you and your insurance provider in which you pay a premium in exchange for a set of coverage options that you choose. While many states do not require Boat Insurance, that does not mean you drive without it. Increasing activity on the waterways, will increase the chance of an accident. Also, if you finance or lease your vessel, your lender may require specific insurance coverages and limits. One of the biggest myths about Boat Insurance is that you don’t need it because you're adequately covered under your home insurance policy. While your home's policy may provide some protection for a smaller boat while it's on your property, it won't offer the coverage you need on the water.

Important questions to consider as you think about insuring your boat.

• What additional equipment do you have on your boat?
• There are three different types of equipment you should consider when insuring watercraft:
  1. Attached equipment - This is aftermarket equipment that is permanently mounted, like fish finders, wakeboard racks, LED lights or sound systems. Generally, you will include permanently attached equipment in the hull value.
  2. Unattached equipment - These are items that are not affixed to the boat, but are used exclusively with the boat, like oars, boat cover, and fenders. Every boat will have unattached equipment, so you will want to ensure the policy you purchase has adequate coverage for these items.
  3. Personal contents - These are items like clothing, a portable grill or a cell phone. For most customers, it won't be a significant amount, but make sure you have adequate protection for personal items to avoid filing a claim on you homeowners policy.
• How much do you want the carrier to pay you if your boat is stolen or destroyed? New watercraft depreciate quickly, but they hold value well over time. While Actual Cash Value coverage is slightly less expensive, the settlement may be less than you had hoped. Protection on an Agreed Value Basis ensures you could buy another watercraft in the event of a total loss.
• Where do you use your boat? Most boat owners think liability is limited to medical injuries. However, one of the largest liability exposures is wreckage removal and fuel spill liability. If your boat sinks, you are required to raise the boat and remediate any oil or fuel leakage. The cost can be very expensive, especially in deep lakes.
• Will you trailer your boat? What many boat owner don't know is auto roadside assistance is for covered autos only. If the vehicle towing the boat breaks down, the tow company will leave the boat and trailer on the side of the road. Make sure you add roadside assistance to the boat policy to avoid leaving your boat behind. According to the National Marine Manufacturers Association ( NMMA), 95% of boats are under 27 feet, which means many of them travel by trailer.
• How do you use your boat? Who else uses your boat? Boat owners sometimes have unique exposures, like having co-owners, renting the boat out, or using it commercially as a fishing guide. Generally anyone you give permission to use the boat is covered. The exceptions to this are marine professional personnel and if the Boat Insurance policy has a Named Operator endorsement. With a Named Operator endorsement only operators listed can operate the boat.

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