How Much Damage Can I Do To Others
Let’s say you keep your boat in a marina. If your boat catches on fire, theres a good chance that other people’s property will also be damaged. Are the values of boats tied up alongside yours worth $50,000 or $500,000?
You should also rephrase this question to be, How badly could I hurt others? and consider scenarios that result in injury or death to your passengers or to people in other boats. Most states require car owners to carry a specific minimum limit of auto liability insurance in case they hurt someone with their car, but this is not necessarily true for boat insurance. However your marina may require you to carry specific limit of watercraft liability coverage as part of your dockage agreement.
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.
Average Cost Ranges Of Boat Insurance
Boat insurance premiums range from low to costly, Galbreath says, and some small motorboats may be endorsed onto an existing homeowners policy for little extra cost. However, he says there are limits in the policy for the boats length, motor horsepower and maximum speed.
You should consider separate coverage if you have a large, fast boat, he says. And the faster and larger you go, the higher the cost.
So depending on the size, speed and location of your boat, your policy may cost as little as $100 a year up into the thousands. Most rough estimates we found were less than $1,000 per year.
When you meet with an insurance agent to discuss what level of boat insurance coverage you need, Shasha says to be sure you discuss the following factors, all of which influence the cost of your policy:
- Your level of boating education
- The boats safety and security features
- If the boat is a hybrid or electric
- If youre insuring more than one boat with the same company
- If you have another policy, such as auto or homeowners, with the insurer.
Working with an insurance representative to create a marine insurance policy that fits your individual needs and budget can help protect you, your loved ones, and your assets in the event there is a boating accident, Shasha says.
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What Kind Of Boat Insurance Do I Need
Like many other insurance policies, boat insurance can typically be separated into a few types: liability, uninsured motorist, and collision/comprehensive coverages.
Liability insurance is the minimum standard required by most states, banks, and marinas. The boat insurance professionals at trustedchoice.com recommend buying at least $1,000,000 in liability insurance. The recommended amount of liability coverage can be even higher if you have a fast, powerful boat that is both riskier and can cause more damage.
With uninsured/underinsured motorist coverage, the standard minimum is $10,000. Ensure that you take into account any potential injuries and damages you may need to cover if you or one of your passengers is injured or your vessel is badly damaged.
The last type of boat insurance we will cover is collision coverage and comprehensive coverage. These types of coverages should be based specifically on the value of your boat. Check with your lender or your marina to see if there are insurance policies in place.
The Size Of The Engine
A boats engine size will also dictate how much insurance is needed to cover the boat. Larger engines cost more to maintain, repair, and replace.
If your boat has multiple engines, this will incur more insurance costs.
When a boat with multiple engines is destroyed, all of the engines need to be replaced. Insurance companies will take this into account when they write up their policy.
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Great Whites Are Amassing On The East Coast Will You Need A Bigger Boat
There are sharks prowling the waters off the Eastern Seaboard. A lot of them.
On any given day this week, the online Ocearch shark tracker, which follows the movements of sharks and other sea creatures that have been tagged for research, recorded more than 80 great white sharks stalking the western Atlantic Ocean. The predators could be seen hugging the East Coast from New York to Florida.
In a now-viral post, one Twitter user with the handle @punished_stu joked that “sharks are amassing on the east coast,” setting off everything from curiosity to concern about the maritime congregation.
But Chris Fischer, founder of the nonprofit Ocearch, said it’s not unusual to see swarms of great white sharks off the East Coast at this time of year.
“It’s very normal,” he said, adding that sharks typically hunt in the North Atlantic before migrating south for the winter.
“They go up to New England and Atlantic Canada in the summer and fall,” Fischer said. “They forage up there, bulking up and putting on weight, and then when it starts to get cold, they move down to their winter habitat, primarily between Cape Hatteras and Cape Canaveral.”
For more than a decade, Ocearch has been tagging and tracking sharks, sea turtles, seals and other marine animals across the world’s oceans. The subjects are outfitted with satellite devices that record “pings” with location data whenever they breach the water’s surface.
You’re Probably Not Required By Law To Carry Boat Insurance But That Doesn’t Mean You Don’t Need It
A few states require that you have liability coverage on certain types of boats powerboats with more than 50 horsepower or personal watercrafts , for example or on boats used in state parks or kept in state-run marinas. To find out if you are legally required to have insurance on your boat, search online for state and “boat insurance requirements.”
Even if your state does not require you to carry boat insurance, your bank will if you have a loan on the boat, and your marina might. You won’t be able to get a loan on your boat without providing the bank with proof of insurance that covers the full value of the boat in the event of a loss. The bank gets listed as the lien holder on the policy so that if any loss payments are made it will be listed as a co-payee on the check. Most marinas require proof of liability insurance before it will accept a contract for a slip or a mooring, and some will want to be listed as an additional insured on the policy.
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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.
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.
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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.
Q Is There A Difference Between Boat And Yacht Insurance
A. Boat and yacht insurance policies usually vary greatly in their language and coverage. In most instances, a boat is classified as a vessel that is 26? long or smaller, and a yacht is 27? and larger. Since yachts often have larger navigational ranges and face a wider variety of hazards and exposures, yacht insurance tends to be more detailed than a boat insurance policy. Global Marine is well equipped to work with either type of vessel and can help you determine the appropriate policy for your needs.
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Boat Insurance Coverage Faqs
Small Boat Insurance
What is the best coverage for my boat?
It is best to have what is known as an “All Risk” policy, which will provide coverage for all types of losses except those specifically excluded in the policy. Typical exclusions may include wear and tear, gradual deterioration, marring, denting, scratching, animal damage, manufacturer’s defects, defects in design, and ice and freezing.
How much should I insure my boat for?
You should insure your boat for the amount it would cost you to replace it with like kind and quality. This is called “Agreed Value” or “Stated Value” coverage, and in the event of a total loss, will pay the full insured amount. Beware of policies providing “Actual Cash Value” coverage, which means the value of your boat will be replacement cost less depreciation.
What other coverages can I expect with my policy?
The following are standard coverages with standard deductibles and average limits:
- Medical payments, $5,000
- $1,000 limit Personal effects, $250 deductible
- Uninsured boaters liability, between $300,000 and $500,000
- $500 to $1000 limit Towing and assistance, no deductible
- $1,000 limit Fishing equipment, $250 deductible
Who is allowed to operate my boat?
I live in an area where I can’t use my boat in the winter, but my lender requires it be insured year-round. What can I do?
Large Boat Insurance
What are the differences between boat and yacht insurance?
What should I look for in a yacht policy?
What is a normal deductible?
What Does Boat Insurance Cover You For
Here are a few situations you may be covered for, depending on your level of insurance:
- You crash your boat into someones dock. Your cover could pay to repair the dock and your boat .
- Someone was standing on that dock and broke their leg. Your insurance could pay damages for the injury.
- The person on the dock decides to sue you. The right policy will help take care of your lawyer fees and any damages you end up owing the injured person.
- Someone steals your boat. If someone steals your boat, you may be able to get the full value back from your insurer.
- A few local ruffians spray paint your boat. The right policy will also cover vandalism.
- A flood overtakes your boat. A comprehensive policy will cover damage or loss from flood, fire, hail, explosion, lighting, impact and other natural events.
- Youre towing your boat and you damage it in a crash. The right policy will also cover your boat while its on the road, even if you damage it in an accident.
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Who Needs Boat Insurance
Anyone who owns a boat needs MN boat insurance to cover them in a case of an accident, if it was stolen, if it is vandalized or if an uninsured or underinsured boat owner damages or destroys your boat or hurts your passengers. Do you need boat insurance in Minnesota? Yes, it is necessary to have it for any and all boats or other watercraft operated in the state.
You may own a small watercraft like a kayak or a canoe and figure you are covered for losses via your homeowners insurance, however, that may be true, but only up to a specific amount, which might not be enough if your craft is damaged or destroyed. So, you should speak with an agent to find out how much Minnesota boat insurance is needed and how much it cost.
Is Boat Insurance Mandatory In Canada
No. Although insurance isnt legally required for boats or personal watercraft under Canadian law, its highly recommended for boat owners. Remember: your boat, along with other marine equipment, like your trailer, fish-finders, and trolling motors, will all be covered under a good boat insurance policy.
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Q What Type Of Insurance Coverage Does My Policy Include
A. The majority of boat insurance policies sold by Global Marine Insurance Agency are Agreed Value policies. The other most common option for insurance for boats is an Actual Cash Value Policy. The policies have significant differences.
Agreed Value Policy: In an agreed value policy, you are paid the agreed value of the vessel in the event of a total covered loss. If you require repairs for a partial loss claim, you are paid on a new for old basis.
Actual Cash Value Policy: In an actual cash value policy, all covered property losses are subject to depreciation.
Global Marine highly recommends that owners chose an Agreed Value policy to protect their boat in the event of a loss. However, we do offer some Actual Cash Value policies in certain circumstances.
Most of the policies we provide have various levels of Hull, Liability, Personal Effects, Medical Payments, Fuel Spill and Towing coverage.
What May Affect The Cost Of Insurance For My Boat
- Amount of Coverage: The amount of coverage you buy will affect the price you pay.
- Deductible Amount: This is the amount of loss that the covered person is required to pay before the insurance company will pay any losses. The higher the deductible, the lower the price for the insured. An insured should keep in mind, however, that deductibles apply separately to each loss that may occur throughout the year.
- Age and Condition of Boat: New or remodeled boats may have certain safety features to reduce risk while older boats may be subject to more damage in case of an accidental event.
- History of Accidents: If you have a history of boating accidents, this may be used as a factor in setting your rates, based on the likelihood of your having future accidents.
- Navigation Area and Length of Navigation Period: Where you operate your boat and the length of time you use the boat in any particular year can affect your premium.
- Discounts: Most insurance companies offer a variety of discounts, including some of the following based upon projected reduced risks for certain features:
- Multi-policy discounts for covering boat insurance and other insurance with the same carrier
- Safety equipment, including fire extinguishers, burglar alarms and ship-to-shore radios and
- Taking safety courses offered by the Coast Guard, American Red Cross, U.S. Power Squadron or National Association of State Boating Law Administrators .
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What Kinds Of Boats Need To Be Insured
Do you need boat insurance in Minnesota? Yes, you do for just about any kind of boat with a few exceptions such as nonmotorized watercraft 10 feet in length or less .
It doesnt matter if it is a small personal watercraft or Jet Ski or a huge yacht, you should have boat insurance to cover you in a case of a covered loss or damage or an injury to one of your passengers.
Even a boat that is kept locked up in storage or docked most of the time, can be subject to damage, vandalism or being stolen. That means you do need MN boat insurance to pay for those problems if they occur or face high replacement costs for your boat and its contents. Its better to find out what boat insurance cost MN boat owners, then to pay even more if your boat is stolen or destroyed.
