Five Things You Should Know About Boat Insurance
#1: Do you have the right amount of coverage on the hull? Obviously, you want to make sure you have enough insurance on the boat, but when was the last time you reviewed your policy
to be sure the coverage reflects the current value of the boat?
I’ve seen people over insure their boat by 50% or more! The premium on your boat insurance is directly related to the value on the boat. Over insuring the boat equals over paying for insurance! Check to be sure limit on the hull reflects the current market value of your boat.
While we’re talking about hull coverageare you covered agreed value or actual cash value on your boat? Certainly agreed value is much better because the company agrees in advance how much they’re going to pay you in the event of a total loss on your boat. Actual cash value on the hull would only pay you the book or depreciated value.
#2: Liability or Protection and Indemnity Coverage. This coverage affords protection for bodily injury and property damage to others. Make sure that you have enough coverage to comply with the requirements of your personal umbrella . If you dont have an umbrellayou should get one!
In the meantime, be sure you have at least $500,000 or better yet$1,000,000 of liability coverage. The difference between $500,000 and $1,000,000 of coverage many times will only be $25 or $50 for the year. A great investment!
#5: Are you getting all the credits you are entitled to?
Possible credits include:
Boat & Watercraft Insurance
Johnson, Kriste & Daily Insurance can help make your time on the water relaxed and worry-free. We will find you comprehensive protection that protects you, your friends and family, your watercraft and your boating equipment. The average boat costs less than a dollar a day to insure. Youâll enjoy being on the water even more when you arenât worried about your safety, the safety of your passengers, or your investment.
Do you know what to look for in a California watercraft insurance policy? Johnson, Kriste & Daily Insurance can help you determine the right amount of coverage to meet your specific needs. Just contact us today to get started.
Here are some items youâll need to consider when shopping for California boat insurance.
Every need is unique â contact us today to find out how to get the best boat insurance coverage for you.
You Can Typically Buy Liability Insurance Which Pays For Damage Your Boat Does To Others In Amounts From $15000 To $300000 According To The Insurance Information Institute
Depending on the boat accessories you have, you. Marinas may require you to have boat insurance in order to dock your boat. Is it mandatory to have insurance on a boat? The answer is that boat insurance can be required for a variety of reasons.
You can add additional coverage types, such as medical payment for injuries you sustain while on the boat.
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You Decide How Your Boat Or Watercraft Is Insured In California
There are plenty of ways to insure your boat or PWC in California? Whats the best option? The answer depends on your particular situation. You can get boat insurance or personal watercraft insurance quote in just a few seconds with Cost-U-Less, or you can speak to one of our boat insurance professionals in person or on the phone at .
Foremost: Best Variety Of Coverage
Variety of packages and coverage options
Several great discounts
Limitations on who can receive coverage
No mobile app
When it comes to coverage, Foremost offers many standard coverage options, including:
- Watercraft physical damage
- Personal property
Additionally, Foremost offers numerous packages that let boaters customize the coverage they receive. These include:
- Saver Package The most affordable package includes cash value settlements in case of a total loss
- Plus Package Includes all of the basic coverage plus agreed value/total loss replacement cost settlement, watersports liability, diminishing deductible, depreciation deferral, and hurricane haul-out
- Elite Package Offers the most coverage possible, with perks such as boat lift/hoist/cradle coverage, fishing tournament fee reimbursement, pet insurance, trip interruption coverage, enhanced towing services, Bahamas and Mexico navigation coverage, extended total loss replacement, and depreciation deferral
- Pontoon and Pontoon Elite Packages For the specific needs of pontoon boats
- Classic and Classic Elite Packages For boats more than 25 years old
- Performance and Performance Elite Packages For speedboats that reach speeds of 77 mph or greater
- Personal Watercraft Insurance With features specifically tailored for personal watercraft
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Damage And Physical Loss
If your boat or PWC is damaged or lost while youre operating it, this coverage will help cover your vessels repair or replacement costs. Damage and physical loss coverage will protect you whether or not youre at fault for an accident. But most policies dont cover situations such as:
- Normal wear and tear to your boat or PWC
- Defective components or machinery
- Damage from animals such as sharks, insects, and zebra mussels
How Are Small Boats Insured In California
If you have a kayak, canoe, or small sailboat, then your homeowners insurance policy typically covers your property no matter where you bring it. But before you hit the water, you should keep a few things in mind.
Most importantly, make sure your small boat is listed under your home insurance policy. If its not, then talk to your home insurance company about adjusting your coverage to include your kayak or small boat. If you own a premium kayak or small boat, then you may need to talk to your insurance company about special coverage for valuable property.
Secondly, double-check your home insurance policy to understand exactly what sorts of events are covered. Typically covered incidents include fire, theft, lightning, or physical damage. But your specific policy will outline which perils are and arent covered, and these limits apply to your small boat as well.
Finally, remember that typical home insurance coverage for small boats extends only to property damage to your boat. If you hurt someone or damage property while using your kayak or boat, then you wont be covered by home insurance. To protect yourself from liability while using your small boat, we recommend looking at an umbrella insurance policy, which protects you from liability in all sorts of situations. If you already have boat insurance, then you can also talk to your boat insurance company about adding liability coverage while youre out on your kayak or small boat.
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What States Require Boat Insurance
As of right now, only two states have boat insurance lawsâArkansas and Utah. In Arkansas, all motorboats powered by engines of more than 50 horsepower, and all PWC, must be covered by a liability insurance policy. The policy must provide at least $50,000 of liability coverage, and it is illegal to operate the PWC without the required insurance.
In Utah, all motorboats and PWC are required to carry ownerâs or operatorâs liability insurance when operated on Utah waters. Motorboats equipped with engines less than 50 horsepower and airboats are exempt. It is illegal to operate a PWC on Utah waters without the required insurance.
Utahâs boat insurance policy requires the following minimum coverage limits per occurrence:
- $25,000 for bodily injury per person.
- $50,000 for total bodily injury if multiple people are hurt in the accident.
- $15,000 for property damage.
There are some instances of states requiring insurance for boats used in some state parks or kept in some state-operated marinasâcheck with your state marine board or alternative governing agency to see if you are impacted.
Additional Boat Insurance Coverages
As with most other types of insurance, there are optional coverages you can add to your policy for extra financial protection. To find out what coverages best fit your lifestyle and boat type, speak with your agent. With the right policy, you can worry less and enjoy your boat more.
Coverages you can add to your Boat Insurance policy include:
- Total Loss Replacement. Replaces your boat with the latest model, or a comparable one, if it is deemed a total loss.
- Uninsured Boaters Coverage. Covers medical treatment, wage loss and other damages sustained as a result of a boating accident in the case that the liable boater does not have enough or any Liability coverage.
- Actual Cash Value. Provides compensation for your totaled vessel, determined by market value and condition of the insured boat at the time of the loss.
- Disappearing Deductible. Reduces your Comprehensive and Collision deductibles for each claim-free renewal period up to 25%.
- On-Water Towing & Labor. Reimburses you for costs incurred in the event that your vessel is towed.
- Agreed Value Coverage. Compensates you for the amount initially paid to buy your insured boat. No deduction for depreciation and no deductibles are applied.
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Boat Insurance Requirements By State
Generally speaking, you won’t be required by your state to purchase boat insurance. In fact, only a handful of states require boaters to purchase insurance, and the requirement is often limited to boats with engines rated to have at least 50 horsepower. The table below lists the insurance requirements for each state.
|Arkansas||Liability insurance with at least $50,000 in coverage is required for all boats powered by engines of more than 50 horsepower.|
|Hawaii||Only for boats parked in Department of Land and Natural Resources Division of Boating and Ocean Recreation facilities. Liability insurance with at least $500,000 in coverage is required for all boats parked in DOBOR facilities, including harbors and offshore moorings. The insurance policy must name the State of Hawaii, DOBOR as the “additional insured” or “additional interest”. The policy should cover salvage costs for grounded or sunken vessels, damage to docks, pollution containment and wreck removals.|
Lifejackets And The Law
For a boat less than 16 feet long, or a canoe or a kayak of any length:
- Everyone on board a personal watercraft and anyone being towed behind a vessel must wear a Coast Guard-approved life jacket.
- A Coast Guard-approved life jacket must be carried for each person on board.
- If stored, these life jackets must be readily available , and you must show passengers the location of life jackets and other safety equipment.
For a boat 16 feet or longer, you must carry for each passenger:
- The same requirements as above and
- One immediately accessible Type IV device designed for throwing such as a ring, cushion or horseshoe buoy for each boat.
- Whistle or other sound producing device is required on powered vessels, recommended on all others
- Other suggested equipment includes a paddle, a 20 foot tow line, and an anchor.
- Navigational lights during sunset to sunrise or during limited visibility
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How We Chose The Best Boat Insurance Providers
When selecting the best boat insurance providers, we compared policies and discounts for more than 20 nationally recognized insurance companies that offer boat policies. We also looked at each companys financial strength, customer satisfaction ratings, and reviews. We feel confident that our evaluations provide a useful guide to help you select a boat insurance company, but we always encourage you to shop around and compare quotes before signing on the dotted line for any insurance policy.
What Boat Insurance Will Pay For
You can typically buy liability insurance which pays for damage your boat does to others in amounts from $15,000 to $300,000, according to the Insurance Information Institute. Heres what else you can expect from a policy:
|What boat insurance typically covers||What it doesnt cover|
Check, too, about additional coverage for trailers and accessories, for towing and for damage caused by an uninsured boater.
You can buy two types of damage coverage for a boat:
- Actual cash value. This pays the value of your boat at the time of the damage. If your boat is destroyed, your insurance company determines its market value.
Some important things to know about boating and your policy:
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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 .
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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United States Coast Guard Documented Vessel Certification And Registration
If you are a Missouri resident, you have 30 days from acquiring the documented vessel to apply for a Documented Vessel Certificate of Registration . If you do not apply within 30 days, you will incur a penalty of $10 on the 31st day, increasing another $10 for every 30 days you are late up to a maximum penalty of $30.
If you are a nonresident, you have 60 days from acquiring or bringing the documented vessel into Missouri to apply for a Documented Vessel Certificate of Registration, if the vessel is to be kept in Missouri over 60 consecutive days. If you do not apply, there is a penalty of $10 on the 61st day, increasing another $10 for every 30 days you are late up to a maximum penalty of $30.
To obtain a Certificate of Registration and decal for a vessel documented with the United States Coast Guard, the owner must submit the following items to the Motor Vehicle Bureaus central office:
Outboard motors attached to documented vessels must be titled and registered.
You will pay the following fees:
- In-Lieu taxes based on the purchase date and price of the boat or vessel or proof that applicable taxes have been paid
- $12.00 processing fee
Types Of Boat Insurance
There are two basic types of boat insuranceagreed value and actual cash value. How depreciation is handled is what sets them apart.
An agreed value policy covers the boat based on its value when the policy was written. While it can cost more up front, there is no depreciation for a total loss of the boat .
Actual cash value policies cost less up front, but factor in depreciation. In other word, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss. Eventually, as your boat ages, your insurer will likely insist on an actual cash value policyand if often gives a substantial savings.
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Keeping Boat Insurance Afloat In The Off Season
Summer is over, and youve taken your boat out of the water. To save a few dollars, you cancel your boat insurance. After all, what could possibly happen to your baby while its hibernating? A lot, according to Progressive.
Youd be shocked at the number of claims filed in colder months, says Dominic Mediate of Progressive. Nearly two out of every ten Progressive boat claims filed in northern states happen between Labor Day and Memorial Day.
Dont gamble that nothing bad will happen. Common off-season claims include:
Fire, Theft, Vandalism and Flooding Most claims are filed for one of these reasons, which can occur anytime of year. Without coverage, boats damaged by fire, theft, vandalism or flooding arent protected.
Injuries that Occur On or Around Your Boat Some boaters dont realize they could be responsible for injuries that occur on or around their boat even if the injured person was there illegally. Without liability coverage, you could be responsible for the damages or the injured persons medical bills.
Keeping your policy all year round might also save you a few bucks. For example, Progressives disappearing deductibles reduce your Comprehensive and Collision deductible 25 percent for every claim-free policy period. Four policy periods in a row without a claim equals a $0 deductible.
Canceling your policy could mean paying more or the entire deductible, generally $500 or $1,000.