Understanding Boat Insurance

There is nothing better than being out in your own boat on the open water. However, practicing safe boating and having the right insurance policy is critical to your well-being, passengers and your craft.

Many states now require boat owners to have boat insurance. If you have a loan on your boat or use a marina, you may also be required to have boat insurance.

Boat insurance is similar to your car insurance and can help protect you in the same way. As with car insurance, this policy protects you against liability and damage in the event of an accident. However, since boats have different features than your car, make sure your insurance company includes the coverage you need. Plus, boat insurance may differ depending on the type of craft you own. Each policy provides detail on what is covered and what is excluded.

Boat Insurance Coverage You Will Want:

• liability
• physical damage
• theft
• medical payments
• motor coverage
• trailer coverage
• boat covers
• docking fenders
• communications devices

It’s likely that your boat is docked some place other than your backyard. Regardless of where you store your boat, make sure your policy covers you from damage caused by;

• a collision
• sinking
• an accident
• malicious mischief
• vandalism

Also, make sure your boat policy covers physical damage to:

• the hull
• sails
• machinery
• furnishings
• most on-board equipment
• boat trailer for damage from an external cause

Make sure your boat insurance coverage travels with you

Some insurance companies limit where you can go with your watercraft and still be covered, or they charge you extra if you travel. Confirm that your policy provides coverage in and out of the US, regardless of the body of water. If the policy does not provide the necessary coverage, make sure to add it for your trip out of the country.