Wednesday, May 29, 2024

What Do I Need For Boat Insurance

Does Boat Insurance Cover Hurricane Damages

Do I need Boat Insurance?

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.

Does Boat Insurance Cover Theft

Comprehensive boat insurance covers the theft of the boat itself. Personal possessions carried in the boat may or may not be covered, depending on the policy. Therefore, you should carefully review the comprehensive coverage of your policy to determine exactly what is and is not covered.

If you plan to carry expensive fishing equipment or other items of value, you can purchase one or more additional riders, or policy endorsement, to cover those assets.

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.

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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
  • Damage or destruction from a collision, fire, lightning, theft and vandalism.
  • Damage to a boat and permanently attached equipment, such as anchors.
  • Bodily injury liability, which pays expenses when someone is injured on your boat.
  • Property damage liability, which pays for damage your boat causes to someone elses property.
  • Guest passenger liability, which pays for legal expenses of someone driving your boat with permission.
  • Medical payments, which pay expenses for you and your passengers.
  • Normal wear and tear.
  • Defective machinery or machinery damage.
  • Damage from sharks and other creatures.
  • Damage from mold, insects and zebra mussels.
  • 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:

    Boat Insurance Costs And Discounts

    Do I Need Boat Insurance?

    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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    Facts About Boat Trailers

    • A boat trailer should be approximately 2 feet longer than the boat you haul with it.
    • Boats weigh significantly more when fully fueled you also need to consider the weight of anything else you carry on the boat.
    • You may need a tandem-axle trailer if your boat is too heavy for a single-axle trailer.
    • Boat trailers either come painted or galvanized. Painted trailers are susceptible to corrosion from saltwater and should only be used for boats in freshwater lakes or rivers.

    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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    Is Boat Insurance Expensive

    As is the case with almost anything you purchase, the more research and price comparison you doâthe higher likelihood that you will find the boat insurance quote that is right for you. Here are some tips to ensure that you are getting your moneyâs worth and keeping your costs down:

    • Only buy what you need: There are lots of options out there for marine insurance and many of these policies are custom-written. Ensure that you know what you need so you can avoid paying for features that you donât require.
    • Agreed value vs. Cash value: In an agreed value policy, you are paid a pre-determined value for the vessel in the event of a total covered loss. With agreed value, the insured and insurer agree on the value of the boat upfront. Most agents would recommend this option for a new or late-model boat. As the boat continues to age, look to potentially switch to a cash value option to save on premiums.
    • Take a boater safety course: Almost all insurers offer a discount for boaters that have recently completed an approved boater safety course. Take an in-person class or get your boat safety certification online. Check with your insurance agent to see if a discount is offered for your specific policy.
    • Spend on safety gear: Insurance companies may cut you an additional discount for having extra safety features onboard your vessel. Check with your insurance agent to see if you qualify for any additional savings.

    Can My Trailer Be Covered By My Auto Or Homeowners Policy

    Do I need Boat Insurance? Even if I don’t care about what happens to my boat – Boat Insurance Basics

    Your boat trailer may have some coverage under your auto policy or homeowners policy. However, that coverage may not be adequate to protect your investment in your trailer under all circumstances.

    Some auto policies will cover the trailer, provided the trailer is attached to an insured vehicle. Homeowners insurance can usually cover a trailer provided it is stored at the home.

    Since coverage on a home and on a vehicle is different, you may have gaps in coverage for your trailer if you rely on either policy in the event of a loss.

    Check the fine print and talk with a local agent to see if your trailer is covered and how much a boat trailer insurance policy will cost.

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    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.

    Can Someone Of Any Age Operate A Boat

    No, there are age restrictions in effect for operating a boat. Restrictions designed to protect the safety of children, prohibit operators under the age of 16 from operating pleasure craft above specified horsepower limits:

    • Children under the age of 12 may not operate a pleasure craft with more than 7.5 kW without adult supervision.
    • Children between 12 years and 16 years of age may not operate a pleasure craft with more than 30 kW without adult supervision.
    • Only persons 16 years of age or older can operate a personal watercraft, regardless of supervision.

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    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.

    Does Boat Insurance Cover Engine Damage

    Do I Need Boat Insurance for a Small Sailboat?

    Boat insurance sometimes covers engine damage. This varies from company to company, as well as by policy. Some insurance companies have machinery damage exclusions while others do not it often depends on the age of the motor. Reimbursement may include replacement cost or be subject to depreciation.

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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.

    Protection For Your Boat And From Others

    According to the U.S. Coast Guard, the leading type of boating accident is collision with a recreational vehicle. Thats why its important to protect yourself against other vessels and operators who may not be carrying the right level of insurance. An uninsured and underinsured watercraft liability option provides coverage for a loss that you or other occupants of your watercraft experience from a claim involving an un-/underinsured boater.

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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.

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    Do I Need Boat Insurance or is My Boat Covered on Home Insurance?

    There are many reasons why insuring your boat is a good decision. Boating has inherent risks, for example, hitting a submerged object. This type of accident is common and often results in the motor needing to be replaced, which can be expensive. Your belongings could also be damaged if your boat is in an accident. Another reason to insure your boat is if you cause injury to another person or damage their property while using it. Your boat could be damaged not only on the water but also when you are transporting it and while it is in storage. Boat insurance also covers theft and vandalism.

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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.

    Address Your Need For Boat Insurance Through Our Network Of Marine Insurers

    Addressing the need for boat insurance can be a particularly challenging endeavour as it will undoubtedly take an investment of time and effort in order to find the best coverage from the right provider at the most affordable rate.

    To begin, there are numerous characteristics of any boat/personal watercraft that must be taken into consideration when determining the cost of a boat insurance policy these elements can include most or all of the following:

    • Age

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    Am I Covered By The Boat Yards Insurance

    If the boat is going to be in a yard for a long time, can you get lower insurance to just cover things such as accidental damage, storms, fire, etc?

    Yards would always be expected to have third party liability insurance in place in the event of damage being caused to boats in their care, custody or control.

    However, if that damage is caused to a boat by an incident such as an act of God, for example a flood or storm, the vessel may not be covered by the yards policy.

    Owners should ensure they have suitable insurance in place for their vessel when its in a yard for a prolonged period of time. That way, they know exactly what theyre covered for.

    Levels Of Cover With Boat Insurance

    Do You Need Boat Insurance? Who Requires It and Why?

    Just as with other vehicles, with boat insurance you have the options of third party, third-party fire and theft, or comprehensive cover.

    Third party only boat insurance

    Third-party insurance wont pay out if your own boats damaged while boating , but itll cover you for damage or injuries caused to others.

    Although its technically not a legal requirement, youll probably find youll need to arrange third-party cover before youre allowed to licence and moor your craft.

    The Canal and River Trust, which issues licences to use the majority of Britains waterways, specifies that boaters will need third-party cover for at least £2m and the Environment Agency, which deals with licences for the Thames, asks for at least £1m of third party cover.

    Most policies will include adequate third-party cover, but check the requirements of your boat licence issuer to make sure you choose a policy that includes enough protection.

    Even if youre not legally required to have boat insurance, youd be unwise not to take it. If you cause an accident, damage or injury while boating, you could have legal action taken against you

    If you take your boat out to sea, again youre not legally obliged to hold insurance, but as harbour and marina facilities are likely to request it, you might find it difficult to get your boat into or out of the water without it!

    Even if youre not legally required to have boat insurance, youd be unwise not to take it.

    Third party fire and theft boat insurance

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    Am I Covered In The Winter

    While your boat is stored during the off season, you may wonder why you need coverage. However, a lot can happen when a boat is in storage including fire, theft or other damage and a boat policy is a smart way to protect your investment year-round.

    Ready to set sail? Find an ERIE agent in your neighborhood to get a personalized boat insurance quote.

    *Coverage is subject to policy provisions. See individual policies for specific coverage details. Certain terms and limitations may apply. ERIE’s Boat Protector Policy is not available in Kentucky. Refer to our disclaimer for additional information.

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