A significant number of Americans take part in recreational boating every year, and this popular form of recreation does come with risks. Obtaining good boat insurance before getting to the water is very important, but there are some unusual aspects to this type of coverage. At the very minimum, boat owners should have coverage for bodily injuries and property damage. This means injuries that happen on the boat and injuries or deaths that befall other parties are covered.
It’s obvious that a boat owner would want to keep such a significant investment in tip-top condition and working order for the time it is used. But sometimes there are events and issues over which you have no control, such as severe storms, accidents with other boats, theft and more. These other issues can damage or completely destroy your boat, but with carrying boat insurance to protect your property, you can significantly amoelorate the financial consequences of loss.
Boat insurance is a specialized form of coverage that is designed specifically for watercraft. It is not unusual that a boater owner will be required to buy and keep in effect a minimum level of liability coverage. Liability coverage is what compensates the other party for any damages for which you are at fault while operating your boat, however it will not cover any of your own financial losses. Additional protection is offered for boat damage as well personal property loss on the boat, such as sports equipment, life jackets, fishing equipment, scuba gear and more. It is not unusual that many boats have thousands of dollars of personal belongings on board, which can be damaged, stolen, or simply misplaced. Again, it is also helpful to have a policy that also has personal injury coverage. This will pay for medical and other related costs if you or a passenger is injured on your boat.
To summarize, the following are some coverage options for boat owners:
• Liability
• Repair or Replacement Collision Coverage
• Comprehensive (Theft, vandalism and other)
• Bodily Injury
• Property Damage
• Other Optional Coverage Types
When purchasing boat coverage, it is wise to ensure that it is as financially protective as possible, but also able to fall within your budgetary guidelines. The annual cost will depend on several issues such as:
• Boat Size and Motor Type
• Age of Craft
• Kind of Craft
• State where Boat is Berthed
• Kind of Usage
• Optional Coverage Choices
• Boat’s Assessed Value
This type of insurance will require a regular premium payment as well as an out-of-pocket deductible that you must first pay when you have a claim. (Deductibles can be increased to make the premiums more affordable. However, understand that the deductible may need to be provided at any time so always be prepared with some money saved away should it be needed. Since one can never predict when their boat will be damaged or destroyed due to one peril or another, one should certainly, as soon as possible, obtain good insurance for boats.