For most people owning a boat is about fun and the thrill of being out on the water – whether alone or with friends. Insurance is not what you are thinking about when you are planning to buy your boat. But of all the money you spend and will continue to spend, on your boat, boat insurance may be the smartest dollars you spend. And some marinas won’t let you dock your boat unless you’ve got insurance.
There some coverage for watercraft in most homeowners insurance policies but it is extremely limited and not enough to comfortably rely on. Typically, a home insurance policy will pay up to a certain amount (which usually isn’t much) if something happens to your boat while it’s at your house. The policy may even offer some liability coverage for you while you use your boat, but it’s less than ideal.
There are three main categories that watercraft fall into within the insurance industry: boats, yachts, and personal watercraft. The difference between boats and yachts is size. Personal watercrafts are jet skis, wave runners, and the like.
No matter what category your craft falls in insurance is available and good investment. They each require different types of insurance coverage. As with many other types of insurance, policies vary quite a bit from company to company. If you’re in the market for boat, yacht or personal watercraft insurance, comparing different companies’ policies can be tricky. Read each policy carefully.
Policies range from very affordable to incredibly expensive. It is important to understand the policy and service promises behind the price of the coverage. It’s better to pay for a more expensive but high quality policy than a cheap one with limited features. It is not advisable to accept low protection just to get a lower price. Make sure that you get the protection you and your boat need.
Boat insurance is not only designed to protect your boat, it can also protect you and others who use it. Look at liability options when considering your policy. You can never be so sure of your and your passengers’ safety when you’re out at sea. There may be instances when you will accidentally injure a person while on the water – it could be one of your passengers or someone else who is just in the water. This is This type of coverage also protects you if you collide with and damage another boat or if you hit a rock.