If your boat has a motor, it probably needs boat insurance. In an interview with The Family Handyman, Producer Ben Galbreath explained what you need to know about boat insurance, including how much it costs to cover damages, loss and liability.
Do you need boat insurance?
If you have any kind of motorized watercraft, whether it’s a small fishing boat or an expensive ocean-going vessel, you almost certainly need boat insurance.
“If it has a motor, you need to consider at least liability coverage. The larger the motor, the more risk you will take on legally,” Ben said. “If you are financing a new boat, your lender will require that it be insured.”
Ben noted that if the boat is stored in a marina or other privately owned location, the owners will almost certainly require the boat be insured.
And while non-motorized boats such as canoes and kayaks usually don’t require an insurance policy, Galbreath added, they should at least be added to an existing homeowner’s policy. That’s especially true if you keep the boat at a cabin or holiday home. “If you are loaning out the canoe or kayak to someone,” he says, “you’ll need liability coverage, at a minimum.”
How does boat insurance protect you?
Standard options typically include: physical damage, liability, personal property, towing and assistance, and theft.
Two areas that may or may not be covered, but are definitely worth asking about:
Uninsured boater. “If you get hit by another boater that doesn’t have enough insurance or any insurance,” said Ben, “uninsured boater coverage will kick in to pay for damage or injuries.”
Hurricane coverage. If you live in the eastern/southeastern U.S. or anywhere with the possibility of hurricanes, ask if your boat is covered for storm-related loss or damage.
Types of boat insurance
Damage reimbursement and liability are two sides of the same coin with boat insurance. Ben said liability requirements depend on state laws, as well as lender requirements if you have a mortgage or loan on the boat.
“Another variable for coverage,” he commented, “is if the boat will be out on a private lake, on a state lake or reservoir, a river or tributary, or on open water or the ocean.” The greater the risks of adverse weather, theft or unfortunate encounters with other boaters, the more detailed the policy will be.
Average Cost Ranges of Boat Insurance
Boat insurance premiums range from low to costly, Ben commented, and some small motorboats may be endorsed (added) onto an existing homeowner’s policy for little extra cost. However, he said there are limits in the policy for the boat’s length, motor horsepower and maximum speed. “You should consider separate coverage if you have a large, fast boat,” he says. “And the faster and larger you go, the higher the cost.”
Read the full article here.
Questions about boat or watercraft insurance coverage? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.
