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.
Common Insurance Questions From Boat Owners
Do I have to insure my boat?
Can I insure my boat under my home insurance policy?
Most home insurance policies will allow you to insure boats up to a certain length or horse power. This is generally limited to small aluminium boats with outboard motors. You may have no choice but to insure your boat under a stand-alone boat insurance policy.
Home insurance policies are not intended to cover marine risks and have limited coverage for boats where as a stand-alone boat insurance policy will offer all-risk coverage. The basis of loss settlement on a stand-alone boat insurance policy is Agreed Value which is the amount shown on the policy declaration page. On a home insurance policy, the basis of loss settlement is Actual Cash Value which is replacement cost less depreciation. You may save some money by adding your small boat to your home insurance policy but it could cost you thousands of dollars when a loss occurs, assuming you have coverage in the first place.
Lastly, if you insure your boat under your home insurance policy, a claim on your boat counts as a claim against your home insurance policy. Once you have a couple of claims, your insurance company may cancel your home insurance policy. If that happens, you will have to purchase a high risk policy at triple the premium you were paying before.
What is the difference between Agreed Value and Actual Cash Value?
Do I have coverage when towing my boat?
What is a survey and do I need one?
What discounts are available?
What Does Boat Insurance Cover
Boat insurance contains coverage types to help in different situations, much like car insurance:
Property coverage. This protects the boat against theft and damage due to an accident or sinking. This coverage usually applies to the boat whether its on land or water.
You may get a choice of actual cash value or replacement cost coverage in the event your boat is totaled or stolen:
- With actual cash value coverage, if your boat is totaled your insurance claim will reflect the value of the boat at the time of the incident.
- Replacement cost coverage doesnt factor in depreciation. It will reimburse you for the amount of money it would take to repair your boat back to the same condition before the accident or replace it with the same or similar boat model.
Liability coverage. If your boat damages someone elses property, such as another boat, or injures someone during an accident, liability coverage pays their damages. It may also cover problems caused by your watercraft, such as a large wake. Liability insurance also covers your legal fees if youre sued over a problem covered by the policy, such as a boating accident.
Medical payments coverage. If you or your passengers are injured in a boating accident, medical payments coverage pays for your medical bills.
Uninsured watercraft coverage. If an uninsured boater strikes your boat, uninsured watercraft coverage pays your medical bills.
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Best For Affordability: Allstate
- No. of Policy Types: 3+
- Coverage Limit: Varies
Allstate is an insurance powerhouse that offers affordable boat insurance, multiple discounts, and additional boating resources on its website.;
Need to speak to agent for policy details
Doesnt specialize in boat insurance
May not get personal attention of a smaller company
Allstate is one of the biggest personal insurers in the United States, consistently drawing high financial strength and customer service ratings from a variety of rating institutions, including A+ from AM Best. Allstate advertises its boat insurance as being affordable for a variety of boat types and coverage options, with some policies available for as low as a $25 monthly premium. The company offers a variety of payment options to fit your financial situation, including Allstate’s Easy Pay Plan where you can save 5% by having your boat insurance premium automatically deducted from your checking account. Or, if you opt to pay;in full, you can save up to 10% on your policy premium. If you already have other policies through Allstate, it makes sense to check into their boat insurance coverage since you can save up to 20% on your policy premium by combining it with a home policy. Allstate also offers a 10% discount on boat insurance to all home owners.
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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Bonus Tip To Make Money With Boat Business And Rentals Have A Boat Insurance
All boat owners must take good care of their vessels so that they are well protected from accidents, theft, fire, or weather conditions. The best way to ensure your boat is to have all the hulls covered by Insurance.;
Boat insurance for boat rentals does not have to be too extensive. You can limit it to liability coverage that covers accidents that involve a third party. Additionally, you can protect yourself from loss of the equipment and inventory on your boat if you have a more comprehensive insurance policy.
This will help ensure that if anything unexpected happens, you are covered. A reliable boat insurance provider can help you out.
Masterpiece Yacht Policy Highlights
;Agreed Value Coverage;
We pay the entire agreed amount, with no deductible, for a total loss. With our Masterpiece Yacht Select policy, eligible vessels can receive Replacement Cost coverage up to 120%.
Limits of coverage to suit your personal needs, including: legal defense costs, liability as required by the Oil Pollution Act of 1990, wreck removal, and Jones Act coverage for paid crew.
;Replacement Cost Loss Settlement
Repair or replacement of covered property is paid for without deduction for depreciation for most partial losses.
;Uninsured/Underinsured Boater Coverage
Pays for bodily injury to persons aboard the insured watercraft who are injured by an uninsured owner or operator of another vessel.
Reasonable medical and related expenses are included for all those onboard, boarding or leaving the covered vessel. These benefits are provided on a per person basis, rather than per occurrence. Optional and customized limits are available.
;Search & Rescue
Up to $10,000 for the expenses incurred by an insured in relation to a governmental unit such as the United States Coast Guard who provide emergency aid and assistance are included for no additional charge. With our Masterpiece Yacht Select option, coverage is available up to $25,000.
;Longshore and Harbor Workers Compensation Act
;Personal Property & Fishing Equipment Coverage
;Coverage for Marinas as Additional Insured
;Emergency Towing & Assistance
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Offer Boat Cleaning Services
Boats are some of the dirtiest things that one can own, especially for those who like fishing on their own. Over time, the boat becomes home to all sorts of bugs and insects, some of which can be very harmful to the person onboard.;
If you have a passion for boating and love caring for boat engines, why not offer boat cleaning services? Besides, it has low startup costs and once you get up and running you can effectively work during your spare time outside of your day job.;
You can move from place to place and take care of peoples boats. These services have a rising demand as the number of people going for holidays on boats is rising at a steady pace. So, youd better grab a good market share now before its too late.
Cleaning boats may not be as glamorous as sandy beaches or tiki bars, but it can also be very profitable.
How Much Coverage Do You Need
With the exception of Arkansas, Utah, and Hawaii, where some type of liability coverage is required, boat owners dont need a minimum amount of boat insurance in most states. This means that finding the right policy for you will mainly depend on four factors: first, the type of boat you have, second, what you use it forfishing, sports, recreation with family or friends, etc., third, how protected you want your boat to be, and fourth, how much are you willing to pay.;;
If your intention is purchasing a well-rounded boat insurance policy, it;should at least feature some type of liability coverage, collision, and medical payments. These three options will cover damages caused to property, physical damages to your boat, and medical expenses for you or passengers. Adding extra coverage to your policy such as towing and roadside assistance can also come in handy. Keep in mind that sometimes companies include services in their policies that others offer for an additional cost. In order to find the best policy and price, you should at least get three quotes from different companies and compare what coverage and services they feature in their policies.
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Best For Safe Boat Drivers: Progressive
Progressive offers a variety of comprehensive boat insurance policies and offers discounts for safe boat drivers.;
Need to contact for pricing
New boaters may be overwhelmed with choices
Dont insure houseboats
Progressive Insurance is well-known throughout the United States and has an excellent reputation for providing comprehensive coverage at competitive prices. Progressive has been writing boat policies for over 35 years and now insures more than one million watercraft. You can buy a boat policy for several types of personal watercraft vessels up to 50 feet long and up to $500,000 in value.
There are several attractive discounts to reward safe boat owners, including a decreasing deductible, in which your policy deductible will decrease for each policy period you remain accident-free, and a safety course discount for anyone who completes a state-approved safety course. New policyholders will enjoy small accident forgiveness for claims of $500 or less, while customers who have insured their watercraft through Progressive for at least four years and been accident-free for the past three years are awarded large accident forgiveness that ensures no increase in rates for any accident.;
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|
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:
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If My Boat Is Stored At A Marina Do I Still Need Insurance
Yes, definitely yes! You always need insurance. And because it is stored elsewhere, does not mean they can be held responsible for any losses. If anything should happen while your boat is in storage, and for the marina to be held accountable, there would have to be proven negligence on their part. For example, if the roof of the marina collapsed and damaged your boat, they have to prove that negligence on their part caused the roof to collapse. . Or, if a raccoon decides to call your boat home, was it the negligence of the marina that let the raccoon in to chew your wires and upholstery? With so many variables to consider, it is much safer to have a year-round boat insurance policy in place. Gives you peace of mind knowing it is protected should anything happen to your boat during the winter months while in storage.
Common winter claims for boats are: vermin damage, theft, vandalism, and storm damage
Boat Insurance From Experts Boatus And Geico Have Teamed Up
Login to My Account, the place to conduct all your BoatUS business online on one secure site, anytime, anywhere. Make a payment and manage autopay options, view your policy summary, retrieve policy documents, upload claim photos and documents, update your credit card, contact and boat information, and more!
BoatUS and GEICO have teamed up to bring boaters a great boat insurance policy at a great price. Serviced by boating experts, and backed by the nations second largest auto insurance company, our coverage options for boaters of all kinds cant be beat.
Check out our policies and add-on coverage options for a custom policy you can only find here.
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.
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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What Does Boat Insurance Typically Cover
Boat insurance coverage will depend on what type of boat you have, what insurance provider you use, and what coverage youre willing to pay for. General boat insurance typically covers physical damage to your boat, as long as none of the restrictions of the policy were violated, and liability coverage for damage to other property caused by you while operating your boat. You can add additional coverage types, such as medical payment for injuries you sustain while on the boat.;
Do I Need To Have Boat Insurance
Although boat insurance is only legally required in a few states , you shouldnt go without it in most cases. If you end up in an accident or stranded out in the ocean somewhere, youll be glad you have it.
Its recommended that you obtain boat insurance if you own one of the following types of boats:
- Personal watercraft
Conversely, if youre just using a canoe, a small-engine boat, or an inexpensive boat worth less than $1,000, you may not need boat insurance.
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What Should I Look For When Shopping For Boat Insurance
There are many factors to consider when shopping for boat insurance. For starters, youll need to decide if you want a policy that uses an agreed value policy or an actual cash value policy. ACV policies are typically cheaper, but they provide less payout in the event of a total loss.
Furthermore, youll want to look for exclusions and restrictions to boat coverage. For example, some companies will only insure boats up to a certain size, whereas others will not insure boats used for commercial purposes. Knowing the specifics of your boat and what youll use it for can really help you find the best policy to fit your needs.
Once you find several companies that will cover your boat, read the entire list of standard coverage inclusions and compare. Where one company may offer towing as a standard feature, another company may only offer it if you pay an extra monthly fee. Noting these small differences could really save you money.
Finally, consider a companys reputation and the attention it gives to its boat insurance. Some specialty insurance companies focus solely on coverage for boats and other recreational vehicles, while other companies just offer boat insurance as an extra to attract more customers. Noting this can help you get the best coverage from experts who know what theyre doing when it comes to boats.
How To Save On Boat Insurance
If you know where to look, there are;ways to save on insurance. First, take a boating safety class. You do want to check with your insurer to make sure you choose a course that qualifies you for savings. Taking a class can save as much as five percent on a boat insurance policy.
Consider adding some safety features, which can also help reduce costs. And dont get more insurance than you need. Choose a policy that specifically fits with your boat and your needs. If you have a boating license, or you cover it under certain types of protective structures, you may be eligible for discounts.
Also, keep in mind that your auto driving record can factor into how much your boat insurance costs. Finally, dont forget about bundling options offered by many insurance companies. That can be one of the main benefits of going with a larger company over a company that specializes in marine insurance.
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