Why Is Boating Insurance Recommended
Boating insurance is recommended for two main reasons, both of which can save you thousands of dollars.
What Boat Insurance Policies Cover
How and where you boat determines the type of coverage you need. An “all risk” policy will offer the best protection. However, an all risk policy does not cover every type of loss. In insurance terms all risk just means that any risk not specifically omitted in the policy is covered. Typical exclusions include wear and tear, marring, denting, animal damage, manufacturers defects, design defects, ice and freezing.
You may also be able to add extra coverage. Available options may include: medical payments, personal effects, uninsured boaters liability, and towing and assistance. Most policies will cover permanently attached equipment, as well as items like anchors, oars, trolling motors, tools, seat cushions, and life jackets. Be sure to discuss these options with your agent.
How Does Boat Insurance Work
Boat insurance works the same way as car insurance does. If you damage your boat or cause injuries or damages to someone else, you file a claim with your insurer asking them to pay for the damages. If the incident is covered, your insurer pays for the losses or injuries up to your coverage limits.
Important note: One of the biggest myths about boat insurance is that you dont need it because you’re adequately covered under your home insurance policy. While your home’s policy may provide some protection for a smaller boat while it’s on your property, it won’t offer the coverage you need on the water especially if you’re operating a powerboat.
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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.
Boat Insurance Policy Basics
What Is Boat Insurance? Why Do I Need It?
Boat and yacht insurance sometimes referred to as marine insurance is designed to help protect you and your boating guests from the potentially high cost of accident-related damages or injuries. It is a contract between you and your insurance company in which you pay a premium to the insurance company in exchange for a set of available coverages you select. If you finance or lease your vessel, your lender may require specific insurance coverages and limits.
Is a Boat Covered Under Homeowners Insurance?
Carrying boat or yacht insurance is a smart decision. Contrary to popular belief, your vessel is not automatically covered under your homeowners policy. If you cause an accident, or get into one with an uninsured vessel, you may be held responsible to cover related expenses, such as repairs, property damage, medical bills and more. Without the proper coverage, your financial well-being could be at risk.
Working with an insurance representative to create a marine insurance policy that helps fit your individual needs and budget can help protect you, your loved ones and your assets in the event there is a boating accident.
What Does Boat Insurance Cover?
Boat insurance coverage options depend on the state where your boat is used, your insurance company and the coverage you choose. Standard boat insurance coverage options typically include:
Who Does Boat Insurance Cover? Who Needs to Be on My Policy?How Do I Buy Boat Insurance?Insure
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Does Boat Insurance Cover A Blown Engine
Boat insurance covers a blown engine under some circumstances. Check that with the insurance company issuing the policy. Many policies will cover a blown engine when the cause is a manufacturers defect, but not if is due to normal wear and tear.
Contact an independent agent for assistance with all of your boat coverage.
TrustedChoice.com Article | Reviewed byJeffrey Green
Factors That Affect The Cost Of Boat Insurance
Here are some facts to discuss with an insurance agent when thinking of buying Minnesota boat insurance. These include the areas you will be covered, i.e. US waters, international waters, coastal waters, etc. You also have to know the value of your boat and if you want replacement coast or not, plus you need to know what the best deductible is for your budget.
Just like if you buy auto insurance you have to consider things like liability and medical costs if someone is hurt or killed in a boat accident that is your fault. You might also need such things as coverage for wreckage removal and fuel spill liability, as well as your own personal effects and boats content.
Other possible coverage options are unattached gear or emergency package for things like towing, bringing you gas or oil if you run out, etc.
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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.
Types Of Boat Insurance Coverage
This will depend on the type of policy, but common coverage add-ons include:
- Specialized Coverage: Coverage for something specific on your boat like an expensive prop or navigation equipment.
- Salvage: Coverage that pays to remove your boat due to damage, from substantial to minor.
- Consequential Damage: Covers a loss that was the result wear and tear rather than an accident .
- Towing: Towing your boat across a body of water to safety can cost $400 per hour.
- Cruising Extension: You can get temporary, additional coverage if you plan on leaving the USA .
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Coverages Provided By Boatowner And Yacht Policies
Physical damage coverage typically allows for the repair or replacement of your boat if it is damaged or destroyed by fire, theft, lightning, vandalism, collision or windstorm . Covered items include the boat itself, inboard and outboard motors, the boats trailer, and may include some personal property kept aboard the boat. However, your personal effects are not covered. Some insurance companies offer separate coverage for fishing equipment, cell phones and computers that you use aboard the boat.
Your liability coverage will pay for bodily injury and property damage for which any covered individual becomes legally responsible. This coverage generally includes a provision to remove or destroy a wrecked or sunken vessel, if required by law. The boatowners and yacht insurance policies may also contain a life salvage provision, which will reimburse the costs incurred by others to save the lives of insureds involved in a boating accident.
This coverage pays for reasonable and necessary medical and funeral expenses due to a boating accident. The coverage is usually limited to $1,000 per person however, the limit may be increased for an additional premium.
What Happens If My Boat Is Damaged In Transit
It doesnt matter if you tow your boat one mile to the nearest boat launch or 100 miles to the best fishing grounds accidents happen. While in transit, the liability protection on the car insurance policy of the towing vehicle will extend to cover damage or injury to others that is done by your towed boat and/or trailer, if you are negligent.
However, in case of an accident, damage to your boat and trailer would only be covered by your boat insurance policy, if you have one.
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What If I Already Have Boat Insurance
Whether your trailer is covered under your boat policy depends on many factors. Insurance coverage varies by state and by individual policy, so its important to check the fine print on your boat insurance.
Some boat policies extend to the trailer as long as a boat is on the trailer sometimes not. If you want your trailer covered, but its not specifically covered in the policy, youll likely have to pay a little extra to extend your coverage.
Which States Require A Boat License
According to the United States Coast Guard and the U.S. Department of Homeland Security, the second most common boating accident is due to inexperience. This has led to 480 boating accidents in 2016 alone.
Boating is far less regulated than operating a motor vehicle such as a car. Only a handful of states require you to have an actual boating license, including:
- Alabama
- Georgia
- Mississippi
However, even though most states dont require a license, they may still have other requirements.
Brad Goldberry, Agency Producer with Farmers Insurance says, State licensing differs from state to state, but many states require some kind of personal boating license or course.
Before you head out on the water, make sure you review your states requirements. Its always better to be safe than sorry.
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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.
Who Offers The Best Boat Insurance Rates
Many insurance companies offer competitive boat insurance rates. Shop around to make sure you are getting the information you need to make an informed decision. Sites like allthingsboat.com and consumeraffairs.com provide reviews for many different insurance companies and are great places to begin your research. Speak with other boaters find out what features are important to them and why. Do your homework by researching different companiesâ offerings and you will be prepared to make the best decision for your needs.
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What Is Boat Insurance
Boat insurance covers you in the event of a loss or damage to your boat. It covers most watercrafts with motors, including fishing boats, pontoon boats, paddle boats, leisure crafts and yachts. Boat insurance does not usually cover canoes, kayaks or personal watercrafts .
For small watercrafts, you may find some limited coverage under your homeowners policy. You may also be able to add a special endorsement or buy separate coverage. Contact an independent agent for assistance with all of your boat coverage.
Are There Speed Limits On The Water
Yes there are speed restrictions when operating a boat in Alberta.
Canada’s Vessel Operation Restriction Regulations – jointly administered with some provinces and municipalities set out the restrictions for the operation of small boats on specific bodies of water in Canada, such as speed limits, power limitations, or when and where certain activities, such as waterskiing, are permitted.
When boating in Alberta you must observe a speed limit of 10 km/h within 30 metres of the shore. This limit applies on all waters within these Alberta, except where other limits are posted. These provisions do not apply in rivers less than 100 metres in width, canals and buoyed channels, nor in the case of waterskiing, where the towboat launches and drops off skiers by heading directly away from or into the shore.
Where can I get more information on Boating rules in Alberta?
You can find more information on a number of government websites:
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Do I Need Boat Insurance If I Own A Personal Watercraft Or Human
Personal watercraft owners can face similar personal and financial risks as with a larger pleasure boat while on the water, including incidents that result in bodily injury to you or another person, bodily injury legal costs if you are sued due to an accident, or property damage to another boat or dock.
Personal watercraft or PWCs or human-powered craft may be covered under your homeowners insurance. When deciding whether a stand-alone policy or coverage under an existing policy will cover these types of devices it is best to consult with an agent or your insurance company.
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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Do You Need Boat Insurance When Renting A Boat
Watercrafts in the summer can be a fun adventure when the weather is warm. But in order to keep the experience from becoming a nightmare, its always good to be prepared for unexpected situations by possibly getting boat insurance coverage if you know youll be using the boat quite a bit. You can also have extra peace of mind by educating yourself and taking a course so that you will familiarize yourself with the basics.
First things first, before you buy a boat, renting is a good way to try it out with minimal commitment. Each boat rental company will have different requirements and varying fees for you to qualify to take a watercraft out, such as:
- Minimum age requirement, if younger, you may be required to pay extra or take a lesson
- Waiver release form
- Possible boating lessons our course certification
- Security Deposit for damages
- Option to purchase Rental Insurance or Boat Insurance
You will have to sign a rental contract that covers the terms of the boat rental, including what damages youd be responsible for paying. Often, its wise to consult your insurance company to see if you have current coverage under your policy that might extend to watercrafts. You may also have the option of purchasing coverage through the rental company, just for the rental period. Another option is to use your credit card to pay for the rental and taking advantage of the rental insurance coverage that is often provided through them.
Do I Need Insurance For My Boat
With summer arriving soon many Michiganders are looking forward to enjoying warm days in and on the water.
Did you know? Its estimated between 35 50% of all boats are uninsured. While the State of Michigan doesnt require you to have boat insurance that doesnt mean its a good idea to go without this valuable coverage for your boat or personal watercraft.
A lot of people assume its safe to go without insurance when they have an older boat or watercraft that may have a lower value. The decide insurance isnt worth the cost and bother based on the low value of their boat.Boat insurance, its important to note, protects a lot more than just the value of your boat.
What happens if you injure someone?What if your boat sinks and you need to pay to have wreck removed?What if you are responsible for a fuel spill?
A boat insurance policy will include liability protection in the event you are responsible for injuries, wreck removal or pollution.
You can also, very affordably, protect the value of your boat or personal watercraft for physical damage as well as covering auxiliary equipment, fishing equipment, and personal property you may use with your boat as well as costs for emergency assistance.
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