For many people, having a boat is a dream. Spending some time on the water with friends and family enjoying a boat is a fun relaxing thing to do, or for others the idea of sailing off shore and enjoying the sun and sea breezes is the thing to do on a nice day. What you choose to do in your boat is your business, but like anything else, you must make sure you’re covered if anything unexpected should happen. So how can you insure your boat?
Here is an overview provided by the Insurance Information Institute regarding what kind of insurance policies exist and how they can cover your boat. Just remember that the size, cost, and type of boat will dictate how much you pay for coverage and what benefits you receive.
Boats like canoes small sail boats and small power boats with light horse power are considered small boats. According to the Institute, these can usually be covered under a homeowner’s or renter’s insurance policy. The amount of coverage is usually either $1,000 or 10% of the homes insured value and protects the boat, motor, and trailer combined.
With this kind of policy, you will have no liability, but you may have the option of adding liability as an endorsement to the homeowner’s policy.
Once you get into the bigger, or faster boats, your insurance will have to be a separate policy. Your Homeowner’s policy will most likely not cover your larger or faster boat as the liability and value increases. Watercraft such as yachts, jet skis, or wave runners need to have their own insurance policy that reflects either the actual cash value, or an agreed upon value.
Boating is a fun thing to do but along with owning a boat comes a certain amount of responsibility. Make sure you are insured for the unexpected. Talk to an agent and get the right information so you can make the choice that is best for you.