If you own a boat, you need to have it insured. You might have to take out a separate insurance policy, or your homeowners insurance policy might cover it.
When Homeowners Insurance Can Apply to a Boat
Your homeowners insurance policy might cover a small boat or canoe. For a vessel with a motor, its horsepower can determine whether or not your homeowners insurance policy will cover it.
Homeowners insurance will cover damage to a small boat, but it usually won’t cover liability. You might be able to purchase an endorsement that will provide that coverage.
When You’ll Need to Take Out a Separate Boat Insurance Policy
You’ll have to purchase a boat insurance policy if you have a large craft. Homeowners insurance generally only covers a boat if it’s used in inland waterways. If you plan to use a watercraft in other areas, you’ll probably need a boat insurance policy.
Boat insurance will cover damage to the vessel, theft, medical payments and liability if you cause an accident that injures someone else or damages someone else’s property. Each type of coverage will have its own deductible. If you have a trailer or accessories, you might have to purchase additional coverage. Insurance policies differ in terms of which perils are covered and which are excluded.
If you don’t think your boat insurance policy’s level of liability coverage is high enough, you can take out an umbrella policy. That way, you won’t have to risk losing your home and other assets if you or a member of your family causes an accident that seriously injures someone.
Some boat insurance policies provide actual cash value coverage. If your boat is destroyed by a covered peril, the amount of compensation that you’ll receive will take depreciation into consideration.
With an agreed value policy, you and the insurance company will agree on the boat’s value when you take out the policy. If the boat gets destroyed, you’ll receive that sum. In exchange, you’ll have to pay higher premiums than you would pay for an actual cash value policy.
How to Find Affordable Insurance Coverage for a Boat
If you have a boat or are thinking about buying one, contact your homeowners insurance company to find out if your policy would cover it. If you need a separate boat insurance policy, you might be able to save money by bundling your boat and homeowners coverage through the same carrier. Taking safety courses and having safety equipment on board can also make you eligible for discounted premiums.
Before you take out any type of insurance policy, make sure you understand what it does and doesn’t cover. Contact several insurers to compare coverage and rates.
