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Boat Insurance

Why Boat Insurance?

Countless numbers of Americans take part in recreational boating and this popular form of recreation does come with some risks. Obtaining good boat insurance before cruising is vital, but there are some unique aspects to this type of coverage. At the very minimum, boat owners should carry insurance protection for bodily injuries and property damage. This includes injuries that occur on the boat and injuries or deaths that befall other parties.
There are events and perils over which you have no control, such as severe weather, accidents with other boats, theft, vandalism and so on. All these perils can result in damage or downright destruction of your boat, but with boat insurance to protect your property, you can mitigate the financial consequences of loss.
Boat insurance is a special type of coverage that is engineered specifically for watercraft. It is not unusual that a boater owner will find him or herself legally obligated to buy and keep up a minimum level of liability coverage. The following are some typical coverage types:
• Liability- This coverage safeguards your guest on the boat (or those aboard another vessel or on the dock) in the event of some accident. It also provides protection for tubers or skiers.
• Property Damage- This includes theft or loss of any equipment attached or on board the boat.
• Other Damage- Other types of loss caused by your boat to another individual’s property.
• Vermin Damage- Sometimes animals can stow themselves aboard and cause expensive damage.
In some locales, such as those in Canada, one is obligated to carry a “Pleasure Craft Operators Card” to operate a motorboat. In not having this card, you can be fined for the illegal operation and this can void any of your insurance protection.
Here are some of the factors that insurance providers take into consideration when determining risk prior to the issuance of boat insurance:
• Kind of boat, its size and age
• Size of the Engine
• The intended operator(s) of the boat
• The vessel’s monetary value
• Where the boat is berthed and used
• Where the boat is stored during the off-months
Keep in mind that some insurance providers will have limits on how far a boat owner may travel in the covered vessel. When working with your insurance professional, you would be well-served by asking about this and any other relevant matters.