- Your boat policy does not apply when the boat is out of the water.
- Homeowners insurance may not provide enough coverage for your boat
There’s nothing quite as exhilarating as boating: the wind in your hair, the sound of the wake against the hull, the snap of the mainsail and the buzz of an outbound fishing line.
It’s no wonder that an estimated 232.3 million adults in the U.S. in 2012, 37.8 percent, or 88 million, participated in recreational boating at least once during the year. Sourced: The Statistics section’s Research Library on NMMA.org.
You have spent good money on your asset and now you want to make sure it is covered in case of an accident, loss or theft.
It’s easy to feel overwhelmed when it comes to obtaining the proper insurance for your boat. That’s because boats are a bit of an odd duck in the insurance world. Insuring a smaller boat is similar in many ways to buying auto insurance while insuring a million-dollar yacht can closely resemble buying home insurance for a house.
Below are a few answers to questions many boat owners have about buying an insurance policy for their boat.
Why do I need boat insurance?
If you’re new to boating, you may be under the impression that your homeowners insurance will magically stretch to cover your boat. Sadly, in most cases it won’t. Most homeowners policies only offer a minimal amount of coverage for really small boats with either no engine or a very small engine. If you are buying a boat for more than $10,000 then your homeowners policy is not going to cover you for your insurance needs. Boats are a unique possession and require a separate policy. While you need separate insurance for your boat, you can still save money by binding your homeowners insurance with your boating policy in many cases. You can save 10% or more via a cross-sell discount by connecting the two policy’s and making your claims and paperwork simpler in the process.
How does it differ from home or auto insurance?
In some ways, boat insurance is a lot like home and car insurance.
A boat policy covers you for liability if someone is injured on your craft and gives you the choice between replacement cost or cash value in a total loss just like the insurance you have on your home.
Like car insurance, a boat policy usually includes coverage for bodily injury that your boat inflicts on others, property damage your boat inflicts on docks and other boats, and physical damage to your boat should you hit something or run aground. You can also purchase comprehensive coverage against theft, vandalism, fire and flood, personal property coverage for your fishing gear, uninsured boater insurance and even roadside assistance in the event you need a tow. Visit our various sources of information below and give us a call to find out more.
Fontenelle & Goodreau Insurance, LLC
Member of the Northlake Insurance Group, Ltd.