What you’ll discover in this report:
- Why your Homeowners Insurance isn’t sufficient coverage for your boat
- Types of watercraft
- What affects the cost of your Boat Insurance
- Additional coverage you may want to consider
You’ve always wanted a “pleasure craft.” But it’s not all about pleasure. Boats are expensive to buy, expensive to maintain and there’s also the potential for danger.
Do I Really Need Boat Insurance?
Boat Insurance is not required by law. In fact, your Homeowners Insurance may provide some coverage for your watercraft. But you should beware: it’s likely very, very minimal. And you should know that it only covers damage to your boat while it’s at home. That doesn’t help you when you’re out on the water.
If you belong to a yacht club or leave your boat in a marina, many of them won’t even let you dock your boat without coverage.
It’s not worth gambling your boat. You’re risking serious damage to your boat that you likely can’t afford to fix. And what if you injured other boaters? It’s best to get the right insurance for your boat.
So Many Options For Watercraft… How Do I Choose?
Just like when you bought your car, the type of boat you buy affects your insurance. So let’s start with the basics. There are several types of watercraft, and every insurance company will define them differently.
Here are a few types:
- Personal watercraft – This includes watercraft like waverunners or jetskis.
- Runabout – A small motorboat holding before 4-8 people. It can be used for racing, fishing or water skiing.
- Sailboat – Generally larger than small vessels propelled partly or fully by sails.
- Pontoon Boat – A flat-bottomed boat that sits on closed cylinders or boxes.
- House Boat – Designed to be used as a human dwelling and generally move slower than other boats.
- Cabin Cruiser – A large power boat between 25-45 feet in length that usually has a washroom, galley and at least one berth.
- Sport boat – These are the fast power boats generally used for racing and water skiing.
- Trawler – A cruiser-like vessel that uses sails for stability. These are slow-moving vehicles with a galley, washroom and sleeping berths.
- Yacht – A recreational boat that’s larger than a cabin cruiser and has the same amenities and more.
For insurance purposes, smaller isn’t always better. In fact, personal watercraft tends to be more accident-prone than most kinds of boats and yachts.
You need to make sure that your Boat Insurance includes coverage for injuries to you and your passengers, the craft itself, liability (for damage and injuries to other crafts and people) and theft.
Factors That Determine Boat Insurance Costs
So we already know that the type and size of boat will affect the cost of your Boat Insurance. Often the higher price the more you pay for a premium. Here are some of the other factors:
- Boat’s age – Like your car, age matters.
- Type of policy you choose – If you add all the optional coverages it’s going to cost more.
- Location – Where you’re planning to operate your boat.
- Experience – The experience of whoever will operate the boat matters.
- Loss/Claims history – Just like your other insurance policies, the fewer claims and losses you’ve had, the better for your wallet.
There are also discounts on your premium if you:
- Complete a safety course
- Insure a boat at market value
- Consider higher hull and machinery deductibles
What Boat Insurance Coverages Do People Usually Get?
Every insurance company offers different optional coverages. But there are some common ones available:
- Personal property – This additional coverage makes sure that all your personal property on the boat is covered.
- Fishing equipment – If you have expensive fishing equipment on your boat, you want to make sure you have this coverage.
- Uninsured boater – Boat Insurance isn’t mandatory, so there will be someone on the water without insurance. If they damage your boat, you want to make sure that you’re covered.
- Replacement cost coverage – This coverage makes sure that you get the full replacement value of your boat if it’s considered a total loss after an accident.
You want to make sure that you and your family are covered when you head out on the water no matter what type of boat you own. It’s an expensive purchase so you want to make sure you don’t lose your shirt if an accident happens. Call Secure Insurance Solutions today and we’ll start working on a quote for your boat.