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What is Boat Insurance and What Does it Cover?

Want to know a bit about boat insurance? Maybe you’re thinking about buying a boat. Or you’ve already bought one and realized you should probably find a way to protect yourself from financial loss. With 87 million Americans boating every year, there are a lot of people in your shoes. 

The good news is by the time you’re done reading this blog post, you’ll know the key aspects and be able to move forward.

 

What is Boat Insurance?

The whole concept of insurance is that you make relatively small, regular premium payments to help protect yourself from loss. You pay car insurance so that if you get in an accident, your insurance can pay for the major damages. Insurance may also pay at least some of the medical bills if the accident caused an injury. Additionally, insurance covers stolen vehicles.

Boat insurance is similar to car insurance. It’s a way for you to protect yourself in case you end up having your boat damaged or stolen.

 

What Types of Boats Can Have Boat Insurance?

If your boat has a motor, you should probably consider getting a boat insurance quote. 

Do you have a fishing boat to zip around the lake so you can catch “the big one?” Perhaps you’re more of a pontoon boat person and you like to just cruise around? Some people love powerboats so they can do water sports like skiing or wakeboarding. People with a need-for-speed enjoy racing on jet skis.

All of those are covered by boat insurance.

 

How Much Does Boat Insurance Cost?

The short answer to this question is “it depends”. For example, insurance on a small fishing boat will be much less expensive than a cabin cruiser or $60,000 pontoon boat. In general, the best boat insurance will cost you around $200 to $500 depending on factors like the value of the boat, what type it is, the add-ons you include, etc.

 

What Does Boat Insurance Cover?

Every policy is different, but here are the main types of coverage:

Comprehensive  – this is the part that covers you if your boat gets vandalized or stolen. If you have an incident besides an accident, it can fall under this as well.

Collision – just as you’d expect, this is what pays for damages due to some kind of collision.

Bodily injury liability – while it’s unfortunate that boats get damaged during accidents, what’s worse is people getting hurt. In 2019 over 2,500 boating injuries were reported. Unfortunately, this can happen, and you’ll want the bodily injury liability coverage to help pay the costs associated with injuries.

Property damage liability – this is covering the other person’s property. So let’s say you get into an accident with another boat and it was your fault. In that case, property damage liability will pay for damages.

 

What are Boat Insurance Add-Ons?

The best boat insurance for you may be different from one that of your neighbor. Even if you have the exact same boat, you may want different add-ons.

Here are a few things you can include as part of your main policy.

Uninsured boaters – let’s say you get into an accident with another boat. It was their fault but they don’t have insurance to pay for the damages. In that case, you’ll be glad you invested in a policy with uninsured boater coverage! 

Boat and trailer roadside assistance – what happens if your truck breaks down while hauling your boat? Unless you have the right type of roadside assistance, the local towing company will probably leave your boat and trailer on the side of the road! That’s why it can make sense to pay a bit more for this extra coverage.

Emergency assistance – think about this as roadside assistance for your boat. If your engine dies while you’re out in the middle of the lake, this type of coverage gets someone to come out and help.

Pet insurance  – yes, you can cover Fido while they’re out on the boat with you.

There are other types of add-ons too such as hurricane hauling services or wreckage and fuel removal. We recommend asking your agent what they recommend for your situation.

 

We Can Help

Now that you know the basics, are you ready to get a boat insurance quote? The best way to start is by filling out this form and we’ll be in touch very soon!

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Come Sail Away: Why You Need Boat Insurance

There is an old sailor’s adage: “The two best days of your life are the day when you buy a boat, and the day when you sell it!”

 

For sailors, and people who love to get out on the water, whether it be in a sailboat or motorboat, you understand that saying well, and also know the need for boat insurance in order to protect you. Partners Direct Insurance mines the insurance field to find the right solution for you to get you out on the water!

 

We have a lot of clients in the areas of Newport Beach and Corona Del Mar, who own a variety of sailboats and powerboats.  They look to us to find the best solutions to keep them covered while on the water, or covered while transporting their boats from one place to the other.

 

Why Do I Need Boat Insurance?

 

If you are financing the purchase of your boat, your bank will require you to provide proof of insurance for your vessel. The policy will need to cover the full value of your boat. You will need to list the bank as a lienholder on the policy, so it will be included as a co-payee on any compensation resulting from a claim.

 

Also, if you are a member of a boat club, many require liability insurance, which means being covered for anything that could cause damage to your boat or to others. It may be a torrential thunderstorm and hail storm, where your roller furling on your sailboat is damaged and the boat’s mast is cracked in two. You may be in a situation where another uninsured boat owner runs into your vessel, causing damage that is expensive to repair. Unfortunately, sometimes theft (both of the vessel and its contents) can occur, or you might hit unforeseen objects in the water. You may have a traffic accident transporting your boat from one place to the other, damaging your boat and/or your boat’s trailer. Perhaps you run aground, causing significant damage to the hull. Maybe you have a group on your boat and someone slips and falls and is injured.  The worst case scenario is someone drowns while on your boat.

 

Do we have your attention? While only two states in the nation (Arkansas and Utah) require you to have boaters insurance, at Partners Direct, our experience has shown that If you are not covered with boaters insurance, you are opening yourself up to problems on down the road.

 

Won’t it Be Covered Under My Homeowner’s Policy?

In most cases, the simple answer is ‘No.’ Under a typical homeowners policy, there are limitations on the size and value of boats that are covered under the policy. In most cases, the value of the boat cannot exceed $2000. This may work if you own a canoe or kayak, but that’s pretty much it. Also, many homeowners’ policies will only cover a boat if it is physically damaged on your property, not on the water.

 

So with a boatowners policy, just like a homeowner’s policy, you can choose between the actual cash value or replacement cost if your boat is a total loss. You will also be covered by the policy if someone is hurt on your boat. Like an automobile policy, you can buy comprehensive and collision coverage, which is commonly called ‘hull insurance’ along with bodily injury and property damage.

 

You can get add ons to your boat insurance, which can include:

 

  • Roadside assistance and on-water towing
  • Mechanical breakdown coverage
  • Trailer trip interruption
  • Coverage for personal property, including fishing equipment and skis

How Can Partners Direct Insurance Help?

At Partners Direct Insurance, we know that heading out on the water is intended to be a relaxing, enjoyable experience. Let us take your mind off the worry of liability. We have tremendous partners with whom we connect who will help us tailor-make a policy perfect for you. Contact us and we’ll get you out on the water today!

 

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