Saturday, July 13, 2024

What Does Boat Insurance Not Cover

How To File An Insurance Claim For Boat Damage

How to put a boat cover on a pontoon boat.

To help get your life back on track quickly and as stress-free as possible, we try to make the claims process uncomplicated. If you need to file an insurance claim for boat damage, you have options:

1.File your claim with your agent, online, through My Account or give us a call at 1-800-MYAMFAM

2.Youll want to have this information on hand:

  • The date and time of the event.
  • A brief description of what happened.

3.After you file a boat insurance claim, our on-call team of experts will be on site as quickly as possible, inspecting the damage and making sure you have everything you need to keep your life moving forward.

The Type Of Policy Being Purchased

We recommend that you buy marine insurance designed to cover property and injury-related specifically to the boat.;

However, your boat may be covered by different types of policies.;

Here are 4 types of policies that may apply:

  • Homeowners insurance policies.
  • Umbrella insurance policies.
  • 1) Homeowners Insurance

    People who store their boat on their property may be able to use their homeowners insurance policy should the worst happen.

    This is especially true if the boat is small and stored inside the house or the garage.

    For example, a kayak stored in the basement of a persons house will be covered if the house burns down and the kayak is destroyed.

    In fact, some homeowners insurance policies may protect the kayak even if it is chained up at the homes back dock. ;However, the same rule might not apply to a larger boat.

    A homeowners insurance policy will often only cover up to $1,000.00.; This means that if your $700.00 canoe is stolen, your insurance company may reimburse you.

    However, it also means that if your $35,000.00 boat is stolen, youll only be reimbursed $1,000.00 for it.

    For this reason, most people will get an additional insurance policy to help cover their boat.

    On top of this, a homeowners insurance policy cannot cover a boat that is out on the water or out on the road.; This means that a person will need to get another policy whenever they intend on using the boat.

    Failure to do so will leave them out of luck should something happen.

    2) Vehicle Insurance

    The Difference Between Great Insurance And Bare Bones Is Less Than The Cost Of A Tank Of Gas

    Are discounts available?

    Discounts are available after you have responsibly owned your boat for three to five years, for being claims free, and if you have taken courses at ;Canadian Power and Sail Squadron or Sail Canada. Discounts are not available for holding the required Pleasure Craft Operator Cardthats like asking for a discount because you have a drivers license.

    Is my boat insured even when Im not using it?

    Yes, when you buy a years policy, your boat is covered in storage, in transit, on the water and over the winter. The risks dont stop when youre not using your boat – its more likely to sink when you are not there, and more electrical fires start in the cold months.

    Can my insurance be voided?

    Yes, if you are involved in any criminal act such as drinking illegally on your boat – your insurance is void.

    What about my trailer?

    ICBC requires a license plate, and liability insurance. Physical damage can be added to your boat policy for Agreed Value.

    Take time to choose your insurance, Paul advises, to make sure you get everything you need.

    He asks, Whats peace of mind worth to you?

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    How Can I Find Out How Much An Insurer May Charge To Insure My Boat

    When you shop for boat insurance, premium quotations are a useful tool for comparing different companies’ products. However, when you ask for price quotations, it is important that you give the same information to each producer or company.

    To give you an accurate quote, the producer or company will usually ask for the following:

    • A description of your boat;
    • If you have security devices;
    • A picture of your boat;
    • The coverages and limits you want; and
    • Any prior property or liability losses.

    Boat Insurance Coverage From Erie Insurance

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    When something unexpected happens to your boat, ERIE offers coverage1 for:

    • Physical damage to your boat and boating equipment as well as the trailer or outboard motor, if its included in your policy. So if your boat is vandalized or it hits another boat, a rock, a log or a marine obstacle, insurance can help cover the damages.

    • Liability for injuries to other people or harm to property.

    • Medical costs for injuries to you, your family members and others.

    With ERIEs boat insurance coverage, weve also built in extras, such as coverage1 for:

    • Emergency services, including;towing to the nearest marina if your boat motor breaks down, when youre stranded on the water2 or run out of fuel, oil or battery life.3
    • Certain personal effects in or on the boat, such as clothing or fishing equipment.4
    • Fire extinguisher recharge or replacement after its used to fight a covered fire.5

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    Emergency Roadside And On

    If youve purchased physical damage coverage for your watercraft, $500 in emergency roadside and on-water services is automatically included and for an additional charge, it be increased to the following increments: $1,000 or $2,500. Service consists of mechanical labor or other service up to one hour at the location where the breakdown occurred. Note that mechanical breakdown of the boat is excluded in the policy.

    This service also affords towing to a nearby garage or marina or other location to make repairs. Note that the delivery of gasoline, oil or a loaned battery is available but the customer is responsible for the purchase.

    Your Boat Insurance May Not Cover Your Boat Lift

    Most boat owners know that itâs necessary to insure your boat and other watercrafts, but did you know that most boat insurance policies donât include your boat lift and other equipment that is not permanently attached to your watercraft? A basic boat insurance policy doesnât usually cover equipment like boat lifts, boat hoists, and dinghies. Make sure you have the facts about your policy whether you have had it for years or are in the market for a new one. Boat lifts are a valuable piece of equipment and can cost big bucks to replace if not properly insured. Here are some tips to consider when insurancing your boat lift and watercrafts.

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    What Is The Best Type Of Boat Insurance

    The best type of boat insurance is insurance coverage that adequately meets your legal and contractual obligations and allows you to feel comfortable about your exposure to risk. Because each individual situation is different, it is important that you determine what coverage factors matter most to you and your family. Spend time researching your options and speak with multiple insurance brokers or agencies. has an excellent review of boat insurance providers.

    Typical Boat Insurances Cost Examples

    Build a Boat Cover for Near Free

    As we will see in a second, many factors go into boat insurance, so absolutely knowing the costs ahead of time isnt possible.;

    However, you can estimate annual costs based on 1.5% of the boats value.;

    So a $100,000.00 boat should have an annual insurance cost of $1,500.00.; Individual factors will come into play, but, in general, the 1.5% rule is reasonably accurate for estimation.

    However, here are a few basic examples I found from other boaters around the web:

    2003 Scout 242 Abaco with a 225 HP Yamaha motor in Northern California.;Hull value of $70,000.00.;The owner has full coverage and is paying $658.00 a year for insurance.

    1963 Bertram 25 with two 135 HP motors on Orange Beach, Alabama. The value is $55,000.00, and the owner is paying $583.00 annually.

    2008 MayCraft 2000cc with a replacement value of $26,000.00. The boat is located in Delaware, and the owner is paying $348.00 a year.

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    How Boat Owners’ Insurance Works

    Fundamentally, boat owners insurance functions based on the same basic principles as other more familiar types of insurance. In exchange for a series of monthly insurance premiums, the insurer agrees to assume the liability for a range of potential risks associated with owning or operating a boat. In the case of boat owners insurance, these could include risks such as physical damage to the boat, the loss or theft of items stored on the boat, or the injury or death of its passengers or third parties.

    Boat owners can purchase boat owners insurance for many different types of boats, such as yachts, sailboats, and even houseboats. The coverage provided in the policy will be tailored to the boats value and likely usage. For instance, a houseboat owner might wish to insure against their home being damaged or destroyed, but may not need to insure against accidents while operating the boat if the houseboat is permanently kept stationary. A yacht owner, on the other hand, would likely want to ensure against both types of risk while also protecting against third-party liability.

    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 .

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    The Owners Credit History/insurance Score

    The insurance company will do a soft credit history check.;

    This means that their inquiry will not show up on your credit, but they will know your history.;

    They will use this information to determine how much your premiums will be on your policy.;

    Any history you have with other insurance companies will also come into play.

    Best For Emergency Services Coverage: State Farm

    Marine Insurance Cover

    ;State Farm

    • No. of Policy Types: 1
    • Coverage Limit: Varies

    State Farm is a well-known insurance provider that offers additional coverages including emergency services reimbursement.;

    • Coverage for houseboats and jet-skis

    • No online quotes for boat insurance

    • Website needs more detailed information

    • Need to contact agent for policy details

    In business since 1922, State Farm is one of the best-known names in insurance in the United States. They offer;boat liability and property damage insurance for common risks like storms, collision, theft, and more, with add-on coverage options available . Their property damage coverage extends protection not only to equipment permanently attached to your boat but also to accessories such as detachable canopies, life preservers, and seat cushions. State Farm has resources available for boat owners including articles on boat trailer safety tips, boat safety, and water safety. Boat insurance is available for a multitude of watercraft: runabout/sport boats, cruisers/yachts, sailboats, bass boats, jet skis, houseboats, and kayak/canoes.

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    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.

    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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    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:

    Best Practices For Boat Safety

    Measuring for a boat cover

    There are thousands of recreational boating accidents per year, which can be costly in injuries and damages. Contributing factors to boating disasters include traveling too fast for water or weather conditions, driving under the influence of drugs or alcohol, failing to follow boating rules and regulations, carelessness and inexperience.

    The best way to ensure your years of accident- and claims-free experience is to follow boating safety practices.

    • Properly equip your vessel with required navigation lights and with a whistle, horn or bell. Have on hand plenty life jackets and emergency safety devices such as a paddle or oars, a first-aid kit, a supply of fresh water, a tool kit and spare parts, a flashlight, flares and a radio. Carry one or more fire extinguishers, matched to the size and type of boat and keep them readily accessible and in condition for immediate use.
    • Before you sail or launch, check weather forecasts before heading out to ensure good boating conditions. Let someone know where youre going and when you expect to return. Check engine, fuel, electrical and steering systems, especially for exhaust-system leaks.
    • When you have passengers and/or a load, pay attention when loading. Distribute the load evenly and don’t overload. In a small boat, warn passengers not to stand up or shift weight suddenly. Dont permit riding on the bow, seatbacks or gunwales. Make sure that every person on board the boat gets and wears a life jacket.

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    Best For Professional Fishermen: Markel

    • No. of Policy Types: One custom policy;
    • Coverage Limit: Contact for details;
    • Price: $100+/year
    • Policies tailored to your boating needs

    • Free online quotes

    • Need to contact company for policy details

    • Website could be updated

    • Not as well-known as other providers

    The Markel Corporation is a specialty insurance company that offers specialized coverage for boats. They have an A rating from A.M. Best and an A+ rating from the Better Business Bureau. The company has been in business since 1930 and offers comprehensive boat insurance policies for boats and personal watercraft . The Markel policy has an option to add coverage if youre a professional fisherman which provides replacement cost coverage for a preset agreed upon value of fishing equipment. Several discounts are available including an accident-free discount, operator over age 40 discount, and an experienced boater discount for boaters who have five years or more of boating experience. If you happen to qualify for all of the discounts available through Markel, you could save up to 35% on your boat insurance premium. Extra features also come standard without having to pay an additional premium.

    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.

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