Owning a boat is a lifelong dream for many people. It serves as a means of escape from the hustle and bustle of corporate and family life. However, many people do not consider buying boat insurance for their new purchase.
Most people will buy home and auto insurance but avoid buying boat insurance because they don’t think it is important. Boat insurance can protect you, your loved ones, your boat, and all of the items on it, as well as other water-based vehicles.
Today we will focus on why boat insurance is equally as important as other insurance types.
What is boat insurance and why do you need it?
If your boat is stored in a private boathouse, docked at a marina in your neighborhood, or financed, boat insurance may protect your liability risks. In addition to liability and damage coverage, you will also be provided with protection against unforeseen events.
If your boat is for recreational purposes and is privately owned, then you can opt for medical payments, indemnity and protection, and machinery and hull coverage.
For instance, you will be provided with coverage for medical expenses if your boat is involved in an accident.
You may also be protected against bodily injury and property damage if you buy indemnity and protection coverage. You will also be provided with help when it comes time to investigate a loss and when it is time for you to prepare your defense.
If you are found guilty, then your policy will provide payment up to the limit stipulated in your insurance policy.
Machinery and hull coverage will cover damages up to the total loss of the equipment affixed to your boat and the boat itself.
Boats are a very serious investment that can cost you thousands of dollars if your boat is lost, stolen, damaged, or destroyed due to an accident, natural disaster, or crime.
What is covered in a boat insurance policy?
You will be provided with liability coverage if someone presses charges or tries to sue you. You will also be provided with physical damage coverage, as well as a medical expense and personal effect coverage.
Collision damage coverage will cover the replacement or repair expenses for your boat. However, it may not cover clean-up wreckage. If you accidentally crash your boat into another owner’s boat or destroy their dock, you will be protected via property damage liability.
Guest passenger liability will cover the legal fees of a guest of yours who was driving your boat at the time of the accident, provided you permitted them to do so. Your policy may also cover damages that occur due to the elements, such as a tsunami, hurricane, lightning strike, etc.
Please check to see if your provider provides weather damage coverage before you sign anything. Engine damage may also be covered. However, some policies may exclude engine damages, so it is best to check with your provider.
Comprehensive coverage is also strongly recommended for new boat owners. Comprehensive coverage will provide payments for underinsured and uninsured incidents and costs for fishing equipment and any medical expenses. Comprehensive coverage will also provide payments for roadside assistance, personal property, and even oil spill disasters.
While your policy will likely protect you from many things, certain areas may not be covered by your boat insurance policy. Having the right boat insurance coverage will keep you and your loved ones protected.
For instance, your policy may not cover faulty boat design, overuse, corrosion, manufacturer defects, or wear and tear from the normal use of your boat. It is best to check with your provider if you have any doubts or concerns about their insurance package.
Ask them as many questions as you need, and only move forward if they cover all of your needs and transparently address your concerns.
Factors That May Affect the Cost of Your Boat Insurance
The state or province where you reside may affect the cost of your insurance. The type of boat, the age of the boat, and the size of the motor will also affect the price you pay.
Other factors that may affect the cost of your boat insurance include whether or not you have opted for additional coverage, as well as whether you operate your boat on open seas or inland waters.
Obsolescence will also influence how much you pay over time. As boats get older, it may become more difficult to find replacement parts. Some very old boats cannot be salvaged because the parts that they need are no longer manufactured.
The cost of repairs also increases every year, which translates to higher insurance premiums for boat owners. The number of weather-related claims has also gone up in recent years due to global warming.
Hurricanes and tsunamis are more frequent and more severe, which has led to an exponential rise in boat repair and replacement costs.
Better Safe Than Sorry
Sailing is supposed to be an enjoyable activity, but it can be dangerous. Accidents and disasters have been known to happen now and then. Purchasing boat insurance can protect you, your loved ones, and other travellers on the sea from mental, physical, and financial hardships.
Speak to an advisor to determine what type or types of insurance policies will cater to your unique needs, including your financial constraints.
The type of boat that you drive and the size, make, and other factors will all determine what type of boat insurance will be ideal for your situation. In some states and provinces, you may be required to purchase boat insurance to operate a boat. Even if it is not mandatory, it is better to err on the side of caution and purchase boat insurance to possibly save yourself from a huge financial loss in the future.