Expert Opinion: Things You Need to Know About Boat Insurance

You need boat insurance to protect your investment, yourself, and your passengers. Here is what the experts have to say about boat insurance:

1. The need for boat insurance

Most home insurance policies do not cover boats. Some of them may include cover for small sailboats, but they generally do not cover larger boats. It is necessary that you get separate insurance for your boat.

2. The difference between ‘agreed value’ and ‘market value’

‘Agreed value’ is a figure that both the insurer and insured agree upon. If you were to have an accident or your boat gets stolen, you will get back the agreed upon amount. ‘market value’ takes into account the depreciation of the boat. As with a car, a boat starts losing value the moment it leaves the lot. Most boat owners tend to go with the ‘agreed value’.

3. Coverage out of the water

Your boat insurance does not cover your boat off-land. At least not generally. Your boat may be protected by your home policy, but you need to clarify the terms of that. When driving and trailing your boat, your car policy will cover any damages or accidents. A good idea is to get an umbrella policy. This will cover the costs that are not covered by your other policies.

4. Coverage in different areas

Your insurance coverage will specify to where it extends. Some policies may only cover you while you remain within US waters. You may not be covered to sail far away from home. You should clarify this with your insurance provider.

5. Ways to save money on boat insurance

Once you have all the specifics of your boat insurance, you can start thinking about how to save money on it. The experts shared these tips:

Be specific in your policy. Make sure you get the correct policy for your specific type of boat. You don’t want yacht insurance on a dinghy.

Add safety features to your boat. You may be eligible for discounts of your boat is fitted with certain safety features.

Go for a boating class. If you are a trained boat driver, you can save on your policy because you will be a safer driver.

There you have it. Consider all these things when you start looking for your boat insurance provider.

5 Reasons Why You Should Get Boat Insurance

If you own a boat or plan to buy one, you may be wondering if you should get boat insurance. The answer is yes, you need to get boat insurance. There are different reasons for this that include the safety of you and your passengers. If you are still wondering, consider the following reasons why you need to get boat insurance.

1. You may need insurance to get a spot at a marina. Some marinas require proof of insurance before they will give a spot and accept your contract. This is part of their safety and liability precautions and is also good for you.

2. You need insurance to protect your investment. Boats are generally not cheap to buy and you need to protect it with insurance. Insurance will cover your boat for fire, vandalism, accidents, breakdowns, and theft. Most insurance will specify whether it is valid for when the boat is in water or on land.

3. You need insurance to protect yourself in the case of an accident. If you are responsible for an accident where another person, boat, or swimmer gets injured, you will be liable to pay their medical and repair costs. With insurance, you will pay a smaller amount, if any, because the policy will cover any costs.

4. You need insurance to protect passengers. When people are on the boat with you, they should be covered by your insurance. If an accident happens and they get hurt, your insurance should be able to cover expenses for their medical costs.

5. You need insurance to prevent environmental damage. In accidents, boats can spill oil into the water, leave wrecked hull or other pieces in the ocean and cause damage to the ocean, the environment, and potentially other boaters. Your policy should include Fuel Spill Liability and Wreckage Removal so you don’t have to do it yourself. The law requires clean-up and if your policy covers this, you will spend less money and effort on cleaning up.

Insurance for your boat is not something you want to skip. Do some research about available insurance providers and what their policies include. Ask a lot of questions and find the policy that works for you.