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?
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?
Enjoyed Reading What Does Boat Insurance Cover
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Optional Boat Insurance Coverages
On-water boat towing & labor
Covers towing expenses and other emergency services, up to selected limits, if your boat becomes disabled on the water.
Roadside Assistance for boats
May pay for on-site labor for your tow vehicle or boat trailer, or towing to the nearest qualified repair facility.
Fishing equipment insurance
Helps cover damage to fishing equipment while on an insured boat or while being carried on or off an insured boat.
Personal effects insurance
Potentially covers the replacement cost for loss or damage to your personal property while onboard, or while being carried on or off an insured boat.
Boat Insurance What Is Covered
Posted by Waggoner Guest | Oct 14, 2020
Insurance- about as exciting as watching paint dry and is the last thing any boater wants to think about.
Insurance for your vessel can also mean the difference between an accident remaining an accident, or an accident becoming a launching pad for financial ruin.
There has been a renewed interest in boating over the last few years, and the pandemic of 2020 has created an explosion of new boat owners- as I write this, sales are up almost 50% from the same time in 2019.
The flip side of this coin is that insurance claims are also up exponentially, as the new boat owners have largely been excited, inexperienced people that find themselves in situations over their head.
What is Insurance?
Insurance is simply risk transference an insuring company agrees to financially protect the vessel for partial or total loss in return for a premium that is a fraction of the insured value of the boat. The coverage is inexpensive relative to the vessel value because the insured are in a pool of insured that share the cost of providing coverage. If a claim occurs, monies are paid out of that pool.
From the insurance standpoint, honesty is mandatory. A new boat owner must be upfront and open with their agent so the risk can be properly considered.
What is Covered?
As boaters, we need to protect our vessels against damages we may cause to our own vessel, other boats, and the environment. Such coverages include:
Boating in the Pacific Northwest
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Boat Insurance Coverage From Erie Insurance
When something unexpected happens to your boat, ERIE offers coverage1 for:
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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.
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Liability for injuries to other people or harm to property.
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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
Is A Boat Covered Under Homeowners Insurance
Your homeowners policy typically includes some coverage for your watercraft, including their trailers, motors, equipment, parts and accessories. But the coverage for watercraft included on your home insurance policy isn’t meant for all types of boats. And just like a home or vehicle, boats come in all shapes and sizes with different equipment, enhancements and anything else you do to make it uniquely yours. So creating a customized boat insurance policy is key to keeping it protected from unexpected events.
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How Much Is Boat Insurance
Boat insurance cost depends on a variety of factors, including where you keep your watercraft, the value or cost of your watercraft, optional coverages you may want to add to your policy, and more.
The best way to find out exactly how much it will cost for your exact situation, is to get a boat insurance quote. Find a local agent to get started or call .
Whether youre looking to purchase boat insurance today or shopping around to compare boat insurance policies and price options, we can help you find what you need. When comparing boat insurance quotes from multiple providers, be sure to compare similar coverages, limits, and deductibles.
How Does Boat Insurance Work
When you buy boat insurance, you must decide on the amount of coverage you need for your boat, the deductible and the types of coverage you need.
If you have an accident, experience a theft, or have another loss that is covered under your policy, you can file a claim and receive a payment covering the loss.
If you were in an accident with another boat that caused serious damage to your vessel, one of the following things would most likely occur, depending upon the insurance coverage you and the other boater have and the laws in your state:
- If you were at fault, your boat liability insurance would cover the damage up to the limits of the policy.
- If the other boater was at fault, their coverage would pay for your damage, up to the limits of their policy.
- If the other boater was at fault, but did not have boat insurance, or did not have enough to cover your expenses, uninsured/underinsured boaters coverage could cover the damage .
Save on Boat Insurance
The cost of boat insurance varies depending on:
- The state you live in
- The type, size, and age of the boat you wish to insure
- The size of the motor and how it is powered
- Whether you are using it on inland waters or the open seas
- Whether you have selected additional coverage options
In general, boat insurance can range anywhere from as little as $200 to as much as $500 per year.
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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.
What Is Excluded From Boat Insurance
Aspects that are excluded from standard boat insurance policies are:
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Damage caused to the vessel due to deliberate misconduct
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Damage due to wear and tear
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Damage due to corrosion osmosis
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Damage to machinery if your boat breaks down
Other areas to check your policy on carefully include the following.
Sailing limits Always check your policys cruising range. UK policies usually only cover UK inland and coastal waters, so if youre sailing further afield, youll need to extend your limits.
Seasonal cover Some policies only provide cover for certain times and stipulate your boat should be secured ashore for the rest of the year. Check policy limitations: if youre at sea when you should be ashore you might not be covered.
Water sports If you intend to use your craft for water sports, such as towing inflatables, check with your insurer that your policy covers this.
Trailer condition Dont forget to keep your trailer in good condition: if this fails, your boat may be damaged and rendered unseaworthy under your policy. Check the wheel bearings, hitch locks and breakaway cables carefully.
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Why You Need Boat Insurance
Everyone wants to have a safe experience while theyre out on the water, but operating a boat does come with some risks that could result in costly injuries and damages. Insurance could help cover you, your passengers and your boat as well as other people and their property.
Erie Insurance offers coverage for sailboats, powerboats, houseboats, inboard or outboard motorboats and personal watercraft .
Types Of Boat Insurance Coverage
This will depend on the type of policy, but common coverage add-ons include:
- Specialized Coverage: Coverage for something specific on your boat like an expensive prop or navigation equipment.
- Salvage: Coverage that pays to remove your boat due to damage, from substantial to minor.
- Consequential Damage: Covers a loss that was the result wear and tear rather than an accident .
- Towing: Towing your boat across a body of water to safety can cost $400 per hour.
- Cruising Extension: You can get temporary, additional coverage if you plan on leaving the USA .
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How Insurance Can Help Protect You And Your Boat
The type of insurance coverage that you need will depend on a number of factors, such as the size, type, age and value of the boat.
You may have boat insurance coverage available through a homeowners insurance policy or you may need to buy a separate policy. A separate boat policy could provide you with additional liability coverage, broader coverage overall and higher limits for watercraft liability. Liability coverage can help pay for damages to someones boat, dock or other property.
Ask a trusted advisor like an Erie Insurance agent which type of policy is best for you. As with any insurance policy, its a good idea to talk with your agent about the policy details and coverage limits to be sure you have the protection that you need.
Case Study Graham Nixon: Boat Race Crash Claim
If you take part in racing, you will need to ensure you have adequate cover
Graham Nixon is a well known yachtsman in the Solent having been active in IRC racing with the Royal Ocean Racing Club and the Royal Southern Yacht Club.
In 2011 I was taking part in a race in the Solent, recalls Graham. The conditions were sunny and breezy with a light 16-knot wind blowing. I was approaching the windward mark on starboard, when I realised that another yacht, already round the mark, was heading straight for me on port, with their crew preoccupied hoisting their spinnaker. My crew were sitting out on the starboard side with their legs dangling over the edge. They realised the imminent danger and began screaming at the other boat. But instead of taking avoiding action, the helmsman changed course heading straight for us. Immediately the crew scrambled up as their legs were in danger of severe injury while I crash tacked away to avoid injury to my crew.
In the event Grahams yacht still sustained severe damage with the stanchions ripped off along the port side as well as the pulpit.
Immediately, Graham gave instructions for the yacht to be de-rigged and she was then motored back to Cowes for repair.
The protest committee exonerated us and our insurer, Noble Marine, handled all the negotiations with the other boats insurer and paid for all the repairs, recalls Graham thankfully.
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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 .
Boat Insurance : To Insure Or Not To Insure
While insurance for your boat is not a legal requirement, a wise boater takes the time to get educated on the benefits of a policy that protects not only property but liability too. So we turned to a marine insurance veteran and former Boating BC board member Paul Mendham, CIP, President of Navis Marine Insurance, to teach us the basics.
Ive seen lots of crazy things, says Paul. Boats sunk and docks collapsed by a big wake, or damaged in heavy snowstorms. Many people think they dont need insurance because they are careful, or that nothing will happen to them. Well, stuff happens and then youre the one writing the cheque!
According to Paul there are two good reasons to insure your boat: to protect your asset, and your net worth arising from liability. If you get into an accident, and cause property damage or hurt someone, without insurance everything you own can be at risk.
What kind of insurance do I need?
That depends on what kind of boat you have. A canoe or kayak low value, no horsepower and little liability – can be easily added to your home insurance policy. But if you have a powerboat, or a larger sailboat you need a dedicated marine insurance policy. All risk policies cover you for most types of losses, but there are exceptions, so be sure to read the fine print.
Where should I buy my insurance?
What should I ask my broker?
Its great to be prepared, so heres what I would ask:
Why is liability insurance important?
When should I buy my insurance?
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Does Home Insurance Cover Your Boat
Your home insurance usually has limited coverage for a small, non-engine powered watercraft. Engine-powered watercraft and larger boats and are generally not covered by home insurance. It is not enough to protect your investment or cover your costs in case of any liability issues. Boat insurance is available as an add-on to your home insurance.
Boat Insurance Basics: What’s Covered
Learn about boat owners insurance and what the coverage means to you.
Did you know that boat insurance is one of the earliest known forms of insurance? Ancient sailors knew firsthand about the risks of a life at sea and sought to insure their boats against hurricanes and other unpredictable weather and waters. And it still applies today.
Boat insurance policies can vary widely in what they do and do not cover based on a number of considerations, including the type of boat, the waters it will traffic, and how many months of the year the boat will be used. Still, there are a few basic kinds of coverage you can expect to receive, as well as some potential discounts for safe boaters.
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