Whether you’re a pleasure cruiser, fishing enthusiast, or commercial boat owner, boat insurance is an essential part of owning a vessel.
It’s critical to understand the ins and outs of boat insurance so you can make informed decisions about your coverage. In this post, we’ll explore the answers to common questions about boat insurance, including:
- ● How much boat insurance coverage do you need?
- ● Is boat insurance worth it?
- ● What does boat insurance cover?
BOAT INSURANCE 101
The amount of boat insurance coverage you need will depend on several factors, such as the size of your boat, where you intend to use it, and if you plan on taking passengers.
Most policyholders opt for the highest level of liability coverage they can afford — this helps protect against potential damage caused by an accident involving your vessel. It’s also recommended to consider uninsured boater insurance, just in case of an accident with someone who doesn’t have adequate coverage.
The exact amount of coverage may also vary depending on where you live or if you dock your boat at a marina, as these locations often require certain levels of protection.
Do I Really Need Boat Insurance?
If you’re wondering if boat insurance is worth it, then the answer is yes! Considering that boats can be expensive and accidents happen, having protection just makes good financial sense.
Boat insurance may help cover the cost of repairs due to any form of physical damage to your vessel (i.e., collision with another object). It also protects from theft and vandalism, and sometimes, even offers personal property coverage for items stored onboard. Plus, liability insurance can help cover medical bills or legal fees should a lawsuit arise from the incident, especially if anyone gets injured while aboard your boat.
What’s more: depending on where you live and the size of your boat, you may or may not be legally required to purchase boat insurance. This is because only a few states currently demand boaters carry boat insurance; the most common parameter being the engine power rating, which needs at least 50 horsepower for it to be necessary.
However, even though it’s not required in some locations, purchasing boat insurance might still be well worth considering because of the financial protection it can provide in case of unfortunate events.
What Does Boat Insurance Cover?
Boat insurance covers a wide range of items, including, but not limited to, theft or vandalism as well as:
- ● Accidental collisions
- ● Fire
- ● Weather-related damages such as lightning strikes or hail
- ● Sinking or capsizing
- ● Fuel spills
- ● Mechanical breakdowns
- ● And more!
Depending on the policy type chosen, additional benefits may include:
- ● Emergency service calls (e.g., if something goes wrong while out at sea)
- ● Replacement cost value (in case your vessel becomes totaled)
- ● Salvage (if necessary)
- ● Medical payments for injuries sustained onboard
- ● Rental reimbursement for temporary vessels during repairs
Many policies offer other options, such as total loss replacement, which pays out for a new vessel should you become unsalvageable after a covered loss event has occurred. Besides protecting against physical damages caused by accidents and other unforeseen circumstances, boat insurance also offers financial protection should someone get injured while aboard one’s vessel and sue for damages incurred because of negligence. This type of liability protection can be especially beneficial when dealing with high-value assets like boats and yachts.
What Is NOT Covered By Boat Insurance?
Just like any other insurance policy, you should always read your boat insurance to be aware of out-of-pocket expenses that might occur. Among the typical exclusions are:
- ● Normal wear and tear from regular boat use
- ● Manufacturer defects
- ● Faulty design
- ● Corrosion
Some policies also won’t cover damage from aquatic life and mold damage. To ensure your coverage stretches far enough, it’s good practice to shop around and compare different policies before making a final selection.
HOW MUCH IS BOAT INSURANCE?
The last question you likely have about boat insurance is the cost. You now know that boat insurance is a valuable investment to protect your boat, yourself, and others from accidents and damage on the water. While it may seem like an extra cost, the potential financial consequences of an accident or breakdown on the water can be immense. Taking out boat insurance is a smart way to secure against liabilities and repair costs.
When it comes to cost, it’s important to note that coverage can depend on multiple factors, such as the size of the boat, type of boat, and use of the boat, which could affect the overall premiums you’ll pay. Therefore, shopping around for different quotes is essential before committing to any one policy.
That said, on average, boat insurance could cost about $200-$1,000 per year. So if you’re looking for reliable protection against costs associated with boating accidents and breakdowns, getting insured is worth considering — you won’t regret it!
Boats are valuable and require special care and attention when it comes time to insure them properly. Understanding exactly what types of coverage are available — and how much it is — is key in finding the right policy for your unique situation so that you get peace of mind knowing that any potential losses are covered adequately in the event something happens out on the water unexpectedly. Whether you own a powerboat, sailboat, or yacht, make sure you know what kind of boat insurance you need before stepping foot onto your next adventure!
If you need help finding the best boat insurance coverage for the best price, start by speaking to a SimplyIOA agent at 833.872.4467.
