Boat Insurance Basics You Need to Know

A spin around the lake or a cruise down the river can be a great way to spend a summer afternoon. Just make sure you have the necessary coverage to protect your boat (and your wallet).

The type and amount of boat insurance you need depend on the kind of vessel you own and how you use it. Simple craft such as kayaks, smaller sailboats, and small powerboats may be covered by your homeowners policy. Larger, more powerful vessels such as yachts and Jet Skis require separate coverage.

A boat insurance policy typically covers damage to the boat itself, theft, and general liability. Additional coverage, including protection for trailers and boating accessories, may also be available.

• Property coverage. Once your boat is out of the water, insurance coverage can change should something happen. Property coverage manages any physical damage that happens to your boat and equipment, radar systems and sporting equipment like water skis. This also involves transport of your vehicle. One example is if an automobile collides with your trailer on the way to your festivities.
• Personal liability. This coverage is useful in the case that there’s any bodily injury or damage to another’s property. Additionally, medical payments coverage takes care of medical expenses incurred from any accident involving your covered boat.
• Uninsured boaters. This insurance is also important, as it helps to cover expenses should you be involved in an accident with an under- or uninsured boater in the busy summer season.
• Exemptions. Losses and damages involving racing or stunts, failure to properly maintain your boat or damage that occurs from improper storage or animals like birds and rodents are typically not covered under a standard policy.

As a boat owner, you may be eligible for discounts to your insurance premiums. Common discounts include those for multiple policies with the same provider, safety equipment onboard the vessel, and crew’s completion of safety education courses. Remaining claims-free for a certain period of time may also qualify you for a discount.

In addition to obtaining proper insurance, maintain best practices to protect your boat and its passengers. Equip your vessel with proper lighting, an emergency signal (horn, whistle, or bell), and life jackets. Stock your boat with an emergency kit that includes fresh water, a flashlight, a radio, flares, tools, and a first aid kit, and keep a fire extinguisher readily accessible. Lastly, always adhere to marine traffic laws.

It’s important to discuss all the aspects of your policy with your insurance agent, including how your boat will be valued should a claim occur, how repairs and claims are managed, how your policy deals with salvage coverage and towing reimbursement, and much more.

We can guide you through these questions and determine what’s best for you. From land to open water, we can also help you save on your premiums by bundling your boat policy with your homeowners insurance.