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?
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.
Boat Insurance Costs And Discounts
How much youll pay for boat insurance depends on the level of insurance coverage you want, as well as the size, horsepower, type and value of your boat.
You can choose your deductible, which is the amount deducted from your insurance check if you make a claim. A typical policy has deductibles of $250 for property damage, $500 for theft and $1,000 for medical payments, according to the Insurance Information Institute. Liability claims against you do not have a deductible.
Insurance companies offer a variety of ways to save money, including discounts for:
- Having a diesel-powered boat.
- Not having made a previous boat insurance claim.
- Carrying other policies, such as car or homeowners, with the same insurer.
- Taking safety courses.
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Its Kind Of Like A Canopy
Once your boat is out of the water, its insured status can get vague. For instance, if you are driving your boat on a trailer, and get into an accident, the coverage in your auto policy takes effect. However, your boat insurance often does not factor in. So, to make sure you are covered both in water and on land, consider an umbrella policy. Its expanded liability coverage that can help protect you in this scenario .
Actual Cash Value Or Agreed Value
This describes how the value of the boat is determined. Actual cash value is the value of the boat at the time of claim, which takes into account depreciation and may result in a lower premium. An agreed value policy will secure the amount you can receive for your boat if a total loss occurs regardless of the depreciation, although in some cases partial losses may be depreciated.
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Boat Coverage & Limits
Boat Coverage & Limits
Physical damage coverage provides protection if your boat collides with another vessel or submerged object, such as a log or a rock. It is included in most boat and other marine policies.
Discuss your physical damage coverage needs with your insurance representative. Consider what it would cost to repair or replace your vessel when choosing your deductibles and policy limits. If you finance your vessel, your lender may require specific coverage options and limits, too. Remember, you will be responsible to cover your deductible, as well any related costs above this limit.
Do I Need Personal Property Coverage for My Boat? If So, How Much?
Personal property damage coverage provides protection for items on your boat, including clothing and other personal belongings. It is included in most boat and other marine policies.
Discuss your personal property coverage needs with your insurance representative. Consider the items you and your guests often bring aboard your vessel and how important it is to protect them when choosing your policy deductibles and limits.
What Is Boat Towing and Assistance Coverage, and Do I Need It? If So, How Much?
Towing and assistance coverage generally reimburses the cost to transport your boat to a repair facility in the event it is inoperable due to a covered loss, and can also cover gas delivery and boatside assistance if you are stranded. It is included in most boat and other marine policies.
Do I Need Liability Coverage?
What Insurance Do I Need For My Boat
Theres not actually a legal requirement for boats in the UK to be insured.
However, navigation authorities for the waterways and marina and harbour operators usually insist upon at least third-party insurance, which protects others from damage your boat may cause.
The bottom line is, without third-party insurance youll be unable to use your boat on the waterways and unable to obtain a mooring agreement for it.
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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.
You Can Purchase Additional Coverages For Your Boat
Property and liability coverage are the basic types of insurance that you need for your boat. However, if you want to purchase additional protection, there are several different types of extra coverages that you can choose from:
- Reasonable repairs: It can be expensive to fix your boat if theres something wrong with it. With reasonable repairs coverage, maintenance to protect your watercraft from future damage is covered.
- Emergency services: This type of coverage takes care of any expenses that come from needing emergency services.
- Wreck removal: Unfortunately, boats sometimes dont stay afloat like theyre supposed to. If something were to happen and your boat sinks, wreck removal coverage can help pay the reasonable cost of raising, removing, or destroying your boat. Keep in mind that this is only the case if the shipwreck was caused by an insured loss and removal is mandated by law.
- Umbrella coverage: Umbrella coverage provides additional protection against disasters. Basically, it takes care of any expenses left over if your other coverages arent enough.
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Even Small Boats May Require Boat Insurance
Unless you have a very small boat, your homeowners insurance will not cover your boat. You also want to consider whether you need specific additional coverages that homeowners insurance may not provide related to liability and boat-specific damages. Carriers can have different size restrictions for boats as well, so be sure to check with an agent about what coverage your boat needs. You can speak with one of our insurance advisors about your boat at .
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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If Youre Not Sure Your Personal Watercraft Counts As A Boat You Still Have Insurance Options
Other than boat insurance, there are also other categories of marine insurance. Those include: yacht insurance, sailboat insurance, dinghy insurance, boat clubs, boat and PWC rental insurance, and Professional marine insurance. Call an advisor today to see what insurance you need at .
The Bottom Line
Boat insurance is a smart investment for any boat owner. With these ten tips, youre well on your way to choosing a policy that will fit your needs. If youre looking for boat insurance, consider shopping for quotes with an independent insurance agent. An insurance agent is an excellent resource for choosing your coverage, limits and comparing quotes from different insurers.
Happy boating!
Call an InsuraMatch insurance advisor today at to compare boat insurance quotes and save!
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If Youre Using Inland Waterways
Youll usually need to have third party insurance for at least £1 million if you have a powered boat or a houseboat.
You may also need insurance for some types of unpowered boat, eg a houseboat – check with the navigation authority that manages the waterway you want to use.
You could be prosecuted or fined if you dont have the right insurance – the kind of penalty depends on your navigation authority.
The Canal and River Trust website has a list of insurance companies that provide boat insurance.
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Do I Need Boat Insurance
Some states require boat insurance. Also, if you dock your boat or finance it, the marina or lender will probably require coverage.
But even if your state doesnt require it, consider the implications of going without boat insurance. If you get into an accident, youll be on the hook for your own repairs and your liability to others. With the average boat insurance claim hovering around $11,000, according to The Hanover Insurance Group, not having coverage could put you in a sticky financial situation.
The type of insurance you need will depend on the vessels size, type and value:
Small boats. Standard homeowners or renters insurance policies often cover smaller boats like canoes or small sailboats, but usually have limited property damage coverage. While a homeowners insurance policy typically provides coverage for the small boat, motor and trailer, it excludes liability insurance. But its possible to add boat liability coverage to your home insurance policy for an additional charge.
Larger boats. If you have a larger and faster vessel like a yacht, you will need to purchase a boat insurance policy. Depending on the boat accessories you have, you may need additional insurance such as trailer coverage.
Also, to increase your liability coverage limits, consider umbrella insurance. It provides extra liability protection for your auto, home and boat, such as extra insurance in case youre sued for a costly boating accident.
Do I Have To Insure My Boat
Most marinas will require boaters to keep boat insurance on their boats when mooring. Also, if you finance your boat purchase, its likely that your lender will require insurance coverage which lists them as a loss payee to cover their interest in your boat. It is legal to register and operate a boat without insurance, but insurance is recommended to cover accident liability costs, damage, catastrophic loss and theft.
Boat insurance policies cover a variety of personal, pleasure use vessels with motors, including personal watercrafts.
Two important coverages to consider when insuring your boat:
Hull & Machinery: insurance for the physical boat and attached equipment
Protection & Indemnity : Includes liability insurance coverage where you are liable for property damage or if a person is injured or killed. Coverage includes damage caused to other boats or properties, and personal injury. A marine policy also covers legal costs, salvage fees, wreck removal, and any pollution or environmental damage caused by the boat.
Insure your boat to its current market value. This will ensures if a total loss to your boat occurs, you will recover what the boat is worth.
P& I Liability coverage The recommended limit is $2 million.
Many factors influence how much you will pay for pleasure craft boat insurance, including:
- The boats determined value.
- Boat length and type.
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Is Boat Insurance Required
*Boat and PWC coverages are underwritten by GEICO Marine Insurance Company. The TowBoatU.S. Towing Coverage Endorsement is offered by GEICO Marine Insurance Company, with towing services provided by the BoatU.S. Towing Program. Towing coverage only applies to the insured watercraft. This endorsement is not available in all locations and is subject to certain restrictions. Towing coverage is subject to availability and service may be restricted based on the location of the insured watercraft or trailer. Please speak to an agent to discuss details of towing services, limits, exclusions and coverage availability.
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.
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BoatUSâBoat Owner’s Association of The United Statesâis the nation’s largest association for recreational boaters providing service, savings and representation for over 50 years.
Home Insurance And Boats
Sometimes the only kind of boats that are protected with your personal property insurance are canoes and small boats without motors. If your boat has a substantial engine or motor, you may have to get separate coverage. Your boating insurance will probably end up resembling your auto insurance policy.
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You Should Choose Your Boat Insurance Coverage Wisely
or at least with the help of an insurance agent to make sure you understand your options. An agent can help you understand what is and isnt covered in your policy, as well as understand the types of coverages offered by your policy. For example, youll like have the option for replacement cost or cash value in the event of total loss, much like your home insurance policy.
There are also many optional or add-on coverages to consider, but more on that later. If youre wondering whats included, excluded in your policy and how its covered, give one of our insurance advisors a call at . Theyre happy to walk you through your boat insurance policy language.
Does Boat Insurance Cover Passengers
Boat insurance covers boat passengers as well as the owner in an accident. Passengers on the boat are covered under the liability portion of the boaters policy.
However, depending on the policy, this may or may not extend to water skiers you are pulling behind the boat. Be sure to work with a knowledgeable professional who can help evaluate your needs and risks.
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Do You Really Need Boat Insurance
You’re out on the water in your beloved boat without a care in the world, until suddenly you realise you don’t have boat insurance.
A million things cross your mind. Do you really need boat insurance? Does your home insurance cover your boat? What does boat insurance even cover you for? The short answer is if you have a watercraft, you need some level of cover. The type of boat insurance that you require will depend on several factors, such as where you store the boat and what you’re using it for.
If you want peace of mind on and off the water, follow this quick guide for determining what kind of boat insurance you may need.
What Happens Next After I Report A Claim
Your claim is assigned to an adjustor at Coast Claims, and/or a marine surveyor from Crawford and Company. You can expect a call from a claims representative within 24 hours or less to discuss the incident. The adjustor or surveyor will provide instructions for obtaining estimates or proceeding with repairs. Your Safe Harbour broker is ready to assist you along the way.
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