Boat Insurance

Many people enjoy being out on the water in a boat of any size. However, before launching their watercraft, people should protect their investment. Many people don’t realize insurance for their boat is as important as auto insurance.

What it is?

Boat insurance covers the risks of owning and operating watercraft in much the same way auto insurance covers vehicles. It insures the value of the boat and contents against loss or damage, along with providing medical coverage for personal injury resulting from an accident or other covered peril.

Who it is for?

People who own a motorized boat need this type of insurance, including fishing boats, large and small motor boats, pontoons, houseboats and yachts. It does not cover personal watercraft such as canoes and kayaks.

How it works?

Insurance for boats works much like any other property insurance. The owner pays the premium for the coverage they want. If they experience a loss covered by the policy, they file a claim.

Different types of coverage in existence

Boat owners can choose either an agreed value or actual cash value insurance policy. With an agreed value policy, the insurer pays an agreed-upon value for the watercraft in the event of a total covered loss. In the event of a claim for partial damage, the policy pays for repairs on a replacement basis, also referred to as new for old. An actual cash-value policy pays claims for covered property losses on a depreciated basis. In addition, owners can usually choose various levels for coverage for the medical, personal effects, hull, towing, environmental and liability portions of the policy.

Major benefits

Boat insurance provides comprehensive all-risk insurance with protection in case of loss by covered perils. It offers this protection while the boat is in the water, onshore or while being transported by trailer. In addition, it offers medical coverage for personal injury, along with liability coverage in case of an incident from any covered peril. The liability insurance includes legal defense in case of bodily injury or damage to property.