To many, owning a boat is a dream. There’s nothing like spending some time on the water with friends and family. Some prefer sailing off shore and enjoying the sun and sea breezes as the thing to do on a nice day. Or maybe you just want to go out on the lake fishing. What you choose to do in your boat is your business, but like anything else, you must make sure you’re covered if anything unexpected should happen.
The Insurance Information Institute has provided an overview regarding what kind of insurance policies exist and how they can cover your boat. Just remember that the size, cost, and type of boat will have a great influence on how much you pay for coverage and what benefits you receive.
Your homeowners or renter’s insurance can cover small boats like canoes small sail boats and small power boats with light horse power. According to the Institute, these can usually be covered under a homeowner’s or renter’s insurance policy. The amount of coverage is usually either $1,000 or 10% of the homes insured value and protects the boat, motor, and trailer combined.
With this kind of policy, you will have no liability, but you may have the option of adding liability as an endorsement to the homeowner’s policy.
For bigger, or faster boats, your insurance will have to be a separate policy. Your Homeowner’s policy will most likely not cover your larger or faster boat as the liability and value increases. Watercraft such as yachts, jet skis, or wave runners need to have their own insurance policy that reflects either the actual cash value, or an agreed upon value.
Boating is a fun thing to do but along with owning a boat comes a certain amount of responsibility. Make sure you are insured for the unexpected. Talk to an agent and get the right information so you can make the choice that is best for you.