Why You Should Insure Your Boat Or Yacht
In some cases, you may be required to have your boat or yacht insured, even though state law does not require it. If you are using your boat as collateral for a loan, the bank may require you to insure it. You may also be required to carry insurance if you dock your boat or yacht in certain harbors or marinas. Ask officials at the location where you want to dock your boat if they require insurance.
Many people choose not to insure their boats or yachts because they mistakenly assume that their homeowners insurance will provide coverage if the vessel is damaged or if the operator causes an accident. Homeowners insurance provides coverage for small boats on your property in some cases, but it usually does not cover large items that have their own type of insurance policy available. If you own a boat or yacht, you need to cover it with boat insurance, not rely on your homeowners policy.
Why You Should Consider Buying Boat Insurance
Yes, the state of Connecticut does not require you to buy boat insurance but if you love being on the waters, then this insurance policy definitely works in your favor. Lets have a look at some of the basics of boat insurance:
When it comes to buying boat insurance, there are three things you need to consider: the coverage amount you need, the deductible you are willing to pay, and the type of coverage. Heres an example to help you better understand how boat insurance works:
You were in a boating accident with your family. Your boat collided with another boat and the jolt tipped your 15-year-old son into the water. Luckily, the water was pretty tame that day and you, being a good swimmer, were able to save your son. The rest of the family sustained minor injuries, and you had a few scratches on your arms and legs because of sliding on the deck.
Depending on this situation and on your and other boaters insurance coverage, the following things can happen:
- If the collision happened because of you, then liability insurance will protect you from the injured partys boat damage and medical bills.
- If the collision happened because of the other boater, then his/her insurance will cover the damage and medical bills depending on the policys limit.
- If the collision happened because of the other boater, but he/she does not have boat insurance, you will receive any monetary compensation for the damage and medical bills unless you have an uninsured boat.
What Is Boat Insurance And Why Do You Need It
Warm sun. Cool breeze. If you have a boat, you get it: Theres nothing like being out on the water.
You cherish your boat, and the memories you make there are the reason your investment is worth every penny. Having the right insurance coverage for your boat can help you float on worry-free.
If youre ready to buy boat insurance, talk to a local professional like an Erie Insurance agent. He or she can talk you through your coverage options so you understand what fits your needs and budget.
For answers to common questions about boat insurance, keep reading.
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What Does Boat Insurance Not Cover
Boat insurance generally won’t cover maintenance or general wear and tear, including gradual weathering and deterioration, insect damage, mold, or damage from animals or marine life.
Pro tip:
With Sign & Glide® On-Water Towing, Progressive will pay for on-water towing, jump starts, soft un-groundings, and fuel delivery if your boat is disabled on the water. or contact our dispatch center by calling , and we’ll make sure the tow operator is completely paid for and on their way to help.
Who Else May Require You To Carry Boat Insurance
If you intend to finance the purchase of a boat, your bank will require you to provide proof of insurance for the watercraft. Typically, the policy will need to cover the full value of the boat, and your bank may set minimum requirements for specific types of coverage. In addition, you will need to list the bank as a lienholder on the policy so that it will be included as a co-payee on any compensation in the event of a loss payment.
Most ports and marinas will require you to carry boat insurance in order to use their facilities.
For example, if you want to moor your boat at Port of Bellingham in Washington, you must carry a policy with at least $300,000 in general, legal and pollution liability with a policy term of no less than one year. As another example, the Hawaii Division of Boats and Ocean Recreation requires all vessels moored at its facilities to carry at least $500,000 in liability insurance.
Some marinas, such as the Hawaii Division of Boats and Ocean Recreation, may even require that the marina itself be listed as an “additional insured” or “additional interest” on the policy. You’ll normally need to provide proof of insurance before you can sign a contract for a slip or mooring.
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Is My Boat Covered Under My Homeowners Policy
It might be. Of course, a separate boat insurance policy is designed to offer higher limits and more types of coverage, but your homeowners policy might have a few things already built in.
For physical damage: Some carriers limit the amount of coverage you can get under a homeowners policy, depending on the size or horsepower of your boat. An ERIE homeowners policy provides physical damage coverage for any watercraft up to $2,000.
As for liability coverage: It varies by insurance carrier. Some homeowners policies dont automatically cover liability for boats at all. Other times, you can add a small amount of liability coverage if you have a smaller or low-horsepower vessel.
An ERIE homeowners policy includes liability coverage for motored watercraft under 75 horsepower or for sailing vessels under 26 feet in length. You can also add watercraft liability coverage for up to four faster or longer vessels.
Boat Insurance Cost Factors
Many factors are used to set the cost of a policy, and they vary among insurers. Here are some items to consider:
- Cruising Area: Where you boat.
- Boating Safety Education: If you have been formally trained or certified.
- Good Driving Records: Both boating and driving.
- Liability Limits: The higher the limit the higher the cost.
- Deductible: The higher the deductible the lower the premium.
- Towing insurance requirements for offshore fishing .
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Do I Need Boat Insurance When Its In Storage
Keeping your boat insured is a good idea, especially with comprehensive coverage. Your boat insurance will still cover theft, hail damage, and other hazards while its stored. Plus, you won’t have to worry about reactivating your policy once you’re ready to get back out on the water. However, some insurers will allow you to drop some coverages if youd prefer. For example, Progressive lets you adjust certain coverages while you’re not using your boat.
Do I Need Boat Insurance
If you are planning on purchasing a powerboat or a sailboat in the coming months, thereâs a good chance that you are looking into boat insurance as well. If this is the case, you likely have some questions about boat insurance companies and whether you need additional coverage. Well, you came to the right place! In this article, you will find answers the top 9 most frequently asked questions about boat insurance.
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Boats Used On Coastal And Inland Tributary Waters
This insurance is called ocean marine insurance, it is a lot more complicated and it is not wise for an agency to go without it as there may be exposure to state, federal and, for certain agencies, international law. In the United States, ocean marine policies are generally interpreted in accordance with a specialized branch of federal law known as the law of admiralty, or general maritime law. Due to this complexity and the possibility of large dollar claims, Risk Management has purchased a commercial ocean marine insurance policy. In order to generate significant premium savings, this policy has high deductibles. The deductible has been reduced for State agencies down to $1,000 per occurrence via self insurance.
Agencies are allowed to choose their own limit of liability insurance for their operations, so different agencies do have different limits. The minimum allowable limit is $400,000 per occurrence. The liability insurance provided by the ocean marine policy is called protection and indemnity insurance and it covers the following principal types of liability:
- Loss of life, injury, and sickness of the crew, passengers and third parties
- Damage to piers, docks, jetties and other fixed objects
- Damage to another vessel resulting from a collision between the two.
- Damage to other vessels and their cargo caused by a hazard other than collision
- Inadvertently incurred fines and penalties
- Expenses incurred when the law requires a wrecked vessel be removed.
When Is Proof Of Insurance Required
Even though most states dont legally require you to carry boat insurance, other situations may require proof of insurance for your watercraft.
Docking your boat at a marina
If you plan on docking your boat at a marina, many will require you to show proof of insurance before signing the contract. That being so, make sure to read the fine print and understand the requirements before proceeding with any contractual agreement.
For example, marinas such as the Charleston City Marina in South Carolina and the Kemah Boardwalk Marina in Kemah, Texas require docked boats to have liability insurance of at least $300,000.
Marinas like Brickyard Cove in Pt. Richmond, CA require an endorsement on your policy as additional interest or additional insured to avoid claims of negligence.
Harbors will carry their own liability insurance so they can protect claims where they may be at fault.
Financing your boat purchase
If you have financed your boat, your bank may require you to carry boat insurance. If the bank is using the boat as collateral for the loan, they will require you to list them as payee for loss or damage of the boat.
Unlike home and auto coverage, some policies dont require you to carry year-round coverage. But if you have financed your boat, your lender will most likely ask you to carry coverage even when the boat is stored. Your vessel may still be exposed to risks, such as theft and storm damage, while in storage.
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Am I Legally Required To Have Boat Insurance In Missouri Iowa Arkansas Or Kansas
The short answer to this question is no. Unlike car insurance, which is mandatory for all Missouri vehicle owners, our state does not legally require a boat owner to be insured. In fact, most U.S. states do not have laws that require boat owners to purchase insurance, with Arkansas and Utah being the exceptions.
Since boat insurance is not required, it may seem like an unnecessary expense. The cost of owning and maintaining your boat is already a significant expenditure without an additional monthly insurance payment. Aside from cost, some boaters may believe theres no need for them to be insured.
Do you really need boat insurance? Our insurance experts suggest the following advice:
- If youre frequently on the water, you should consider getting boat insurance.
- If you only have a few weekends each year to enjoy time out on the lake, you should consider getting boat insurance.
- If you have parked your vessel in the driveway or safely secured it in storage for most of the year and you rarely get it wet, you should still consider obtaining boat insurance.
Heres the deal: If you own a boat or are buying a boat in Missouri or the surrounding areas, you should consider purchasing boat insurance.
Does Boat Insurance Cover Hurricane Damages
This can vary, depending on the specifics of your policy and what insurance company youre working with.
Generally speaking, wind damage is covered under standard homeowners and boat policies. Water-related damage, like flooding or storm surges, is calculated and insured differently. Ask your insurance agent to explain what your policy generally covers from hurricanes.
No matter what insurance company youre working with, youll generally have to purchase boat insurance in advance to be covered during a hurricane. It varies by state, but in most places, state regulations prohibit anyone from purchasing insurance coverage at the last minute once a hurricane watch or warning is in effect.
If a hurricane or other severe conditions are in the forecast, stay out of the water and get your boat to a safe spot to weather the storm.
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Is Boat Insurance Required
Some states require a boat to have liability coverage. Check with your ERIE agent to see if boat insurance is required in your state. Liability coverage can help pay for damages to someone elses boat, dock or other property.
Even if it isnt mandatory in your state, many marinas require you to have boat insurance to dock your boat there. Additionally, if you take a loan out on your boat, banks often request you buy boat insurance.
What Does Boat Insurance Include
When you purchase boat insurance, standard insurance will typically cover the following:
- Bodily injury: If someone gets injured while on your boat, this will help cover legal and medical bills associated with the accident.
- Property damage: This coverage will protect you if you are at fault in an accident that caused damage to another boat or property.
- Collision: If youre in an accident, this will pay for the cost of repairing or replacing your boat. This coverage is usually optional however, a lender may require you to purchase it if youre leasing.
- Comprehensive: This coverage will pay for repair costs if your boat gets damaged from something other than a collision this includes floods, storms, fire, theft, and vandalism.
- Uninsured/underinsured motorists: If an uninsured or underinsured motorist causes damage to you or your boat, this coverage will help protect you.
- Medical payment coverage: If youre involved in an accident, this coverage will pay for the medical costs regardless of who is at fault. Some policies will even cover funeral expenses.
There are also additional options you can add to your coverage, such as:
Keep in mind your insurance should cover all operators.
Talk to your insurance provider and make sure you have all the appropriate options added to your plan for your specific situation and climate.
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Find Cheap Homeowners Insurance Quotes In Your Area
Most states don’t require boaters to purchase insurance for their watercraft. However, many marinas do require some form of insurance if you wish to use a slip or mooring. Additionally, your bank will require insurance if you are financing the purchase of a boat. Even if these requirements don’t apply in your situation, it’s still generally a good idea to get boat insurance.
How Much Boat Insurance Do I Need
Beyond any state legislation or binding agreements with your lender or marina, the answer to this question may come down to your individual tolerance for risk. As discussed in earlier questions, some states do have minimum requirements for liability insurance coverage. Check with your state government to see whether you are required to meet a coverage threshold. The amount of boat insurance you may need depends on a number of factors, including the boatâs value, motor size, and age. Like other vehicles, high-performance boats will likely command a higher level of coverage to compensate for the amount of damage they are able to inflict.
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Its Probably Not As Expensive As You Think
For all the coverage that boat insurance provides, youd expect it to cost as much as a comparable car insurance policy. Not true! Boat insurance is more affordable than you think. Allstate offers dependable coverage for approximately $20 per month.
For more information on boat insurance, visit the Royce Williams FAQ page or contact us at 615-356-4800 for a free quote.
Boat And Watercraft Insurance Discounts And Savings
The average boat premium costs only about a dollar a day. You can save even more by taking advantage of our discounts, so reach out to our client care team about ways to lower your rates. Below are a few great ways to save.
Be a Safe Boater
You may receive a discount when you complete a boating safety course offered by the Coast Guard Auxiliary or U.S. Power Squadron.
Be advised that some states require boaters younger than 16 years of age to complete an approved safety course before operating a boat.
Billing Plan Credit
You qualify for a discount when you pay your premium in full at the inception or renewal of a policy.
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Word Of Caution: Dont Operate A Vessel Under The Influence
Boat owners bewareoperating a boat under the influence can come with severe consequences. Drinking alcohol or taking drugs while operating a boat can put a big dent in your wallet, result in jail time, lead to revocation of your driving privileges or, worse, lead to a fatal accident. In fact the leading cause of fatal boat collisions is alcohol consumption while driving, according to the US Department of Homeland Security and the US Coast Guard.
Even though operating a boat under the influence is illegal in all states and can lead to legal and financial ramifications, it can also impact your insurance. In some cases, your insurance provider may refuse to pay out a boat damage claim if you were operating a vessel under the influence. While the insurer may pay a liability claim, if there was one, not being reimbursed for damage to your own boat will leave you financially responsible for repairs or replacement. Plus, if your accident resulted from the use of alcohol or drugs, your insurer may decide to terminate your coverage.
Even if you dont get into an accident but are convicted of a BUI, your insurance rate will likely increase substantially. Your insurance company could also cancel coverage. While you can request insurance quotes from other providers, you may end up paying a lot more than you bargained for.