Why boat insurance is important
If you like the idea of spending the summer months out on the water, a boat is one of the best ways to pass those beautiful sunny days. One part of boating life people don’t spend time thinking about though is making sure they have the right insurance. Sure, shopping for boat insurance won’t be as much fun as landing a big fish or tubing with friends, but the right insurance will allow you do have all the fun with a lot less worry.
What does boat insurance cover?
Generally speaking, boat insurance covers most watercrafts with motors: fishing boats, pontoon boats, yachts and paddle boats. Kayaks and canoes usually aren’t covered by boat insurance but can be included on your home insurance policy.
Some things boat insurance can cover include: Injury to others or damage to their property; damage to your boat from things like hitting a submerged rock; recovery costs if your boat sinks; and, damage to property on your boat
Why you should get boat insurance
New boat owners often think their home insurance covers their boats. But that is not the case. Depending on the coverage you have, home insurance might cover small watercraft like kayaks, paddle boats or canoes, but it definitely won’t cover a motorized boat.
Types of boat insurance
The type of boat insurance you purchase will depend on the type of boat you have. Here are a few of the questions your insurance broker will ask about your boat:
- Does your boat an engine? Is it an inboard or outboard engine?
- How big is your boat?
- What type of boat is it: a fishing boat, yacht, sailboat or motorboat?
- Do you use this boat for personal reasons only?
- Where do you store your boat?
- Do you have a trailer to tow your boat?
- How much coverage do you want?
There are different levels of coverage you can purchase for your boat and you can choose from basic coverage to something more extensive. Talking with one of DPM Insurance Groups licensed brokers or CSRs will help you determine what kind of coverage makes the most sense for you.
Here are a few types of coverage you might want to consider for your boat:
Not only is liability coverage the most common type purchased, it can protect you far beyond just the value of the boat. It can help protect you if someone is injured or their property is damaged. It can help pay for your legal fees, any medical expenses that result from the accident, and property repairs. When you think about how costs can add up in the event of an accident, it just makes sense.
Boats aren’t just susceptible to accidents, your boat could be damaged by fire, vandalism or theft. All risks insurance can provide coverage for these types of events. Of course, this does not cover regular wear and tear or mechanical repairs not caused in an accident.
Dos and don’ts when getting boat insurance
- DO get advice from a broker on the best coverage for your type of boat. It’s free and there is no obligation in doing so.
- DON’T buy insurance before talking to a broker, even if you decide in the end not to move forward with the coverage offered.
- DON’T start boating without the right insurance. An accident could cost you a lot of money without the right coverage.
- DO add boat insurance into your budget so you can plan accordingly.
- DON’T purchase a boat without considering all the costs first. Don’t forget, in addition to the boat, you’ll need gear, insurance, gas, and the right equipment and accessories. Make sure this is something you can afford before you take the plunge.
Does my boat insurance cover my boat if it’s not on the water?
That depends on the circumstances and the coverage you have. If you are towing your boat from one spot to another, both your boat insurance and car insurance will protect you depending on the nature of the accident. The exact coverage you have depends on the type of boat insurance policy you purchase. Speak with one of DPM’s brokers or CSRs to learn about what is and isn’t covered in your policy.
What are the factors that determine a boat’s insurance rate?
Many factors will determine your boat insurance rate. The size and type of boat, where you will be using your boat and your claims history will all be considered by the insurance company.
How do I lower the cost of boat insurance?
You can keep your boat insurance low by practicing safe habits on the water to avoid claims. You can also consider bundling your boat insurance with your car and home insurance.