As the days begin to get longer, the yard begins to blossom, and the deep freeze of winter is behind us, many boaters are excited to get back on the water. However, as you begin to make preparations for casting off, you will want to run through your task list, including reviewing your boat insurance.
In this article, we will dig into the subject of boat insurance, including what coverage it offers, what the best policy is for you, what boat insurance costs are, and finally, whether you should insure your boat as a part of your homeowner’s policy. Just as there are an array of different style boats, there are several different considerations when insuring your boat for the coming season. So, climb aboard, and let’s get started.
Why Boat Insurance Is Essential
Having appropriate insurance coverage in place for your boat is essential because it provides protection for your vessel and liability coverage for yourself. Like many recreational hobbies, boating does not come without risk, and accidents do occur. Collisions, hitting unseen objects, sinking, and passenger bodily injuries are all common boat incidents that many people don’t consider.
In 2020 alone, there were over 5,200 recreational boating accidents that resulted in over 700 deaths, 3,000 injuries, and roughly $62.5 million in property damage.
While nobody wants to believe this could happen on their boat, it’s better to be safe than sorry. With the average boat insurance claim costing an estimated $11,000, having adequate coverage can help protect your investment and provide peace of mind.
Factors Considered When Insuring A Boat
Insurance companies have many factors to consider when crafting a policy for boat insurance. Below are the most common criteria when insuring your vessel.
- Value of the boat
- Manufacturer
- Age
- Total length
- Powered or Not
- Powerboat, sailboat, or personal watercraft
- Engine type (outboard or inboard)
- Where it will be used – ocean, lakes, or rivers
Can I Insure My Boat As A Part Of My Homeowners Policy
A common question we receive at Deland, Gibson Insurance is: “Can I insure my boat as a part of my homeowner’s policy?” Most boats will not be covered under a homeowners’ insurance policy based on size, horsepower, and use. For example, an individual that buys a 20-foot center console powerboat with 50 horsepower or more for recreational use will have no coverage under a homeowner’s policy.
Homeowners’ insurance only provides minimal coverage for boats, not nearly enough to suffice for potential accidents. The coverage is typically capped at $1,000, with size restrictions, limitations on horsepower, and minimal damage coverage. In addition, liability is typically not included, meaning your homeowners policy would not cover any injuries that occur on account of your boat. Getting a separate policy for your boat provides a safety net for potential injuries or damages that could occur.
What Does Boat Insurance Cover
The coverage that you receive for your boat depends on your chosen policy. A typical boat insurance policy covers any damage to your boat, including collisions, theft, or vandalism. It also will cover bodily injury liability, meaning if someone is injured on your boat or during a crash, it will help pay for medical bills and other related costs. Lastly, a standard policy will cover property damage liability, which would help cover the cost of any damage your boat inflicts on another person’s property.
Additional coverage options are available depending on your needs, including personal belongings coverage, boat equipment coverage, boat trailer coverage, and more.
What Is The Best Boat Insurance For Me
There are various boat insurance coverage options, and finding one that is best for you is essential. At Deland, Gibson Insurance, we want to give you peace of mind on the water this summer. Contact us today to make sure that your boat is adequately insured.
Common Questions About Boat Insurance
How much does boat insurance cost?
The average cost of boat insurance is $200 to $500 a year depending on factors such as the size of your boat, how much you use it, and how it will be stored.
Is my boat covered by home insurance?
Home insurance policies offer some, but minimal, coverage for small boats – without liability. If you have a larger boat that you use often, it is wiser to purchase a separate policy.
Providing Peace of Mind Through Proactive Service
Deland, Gibson: A Trusted Choice, Five Star Accredited independent insurance agency. Established in Massachusetts in 1900, Deland, Gibson is a 4th generation family-run insurance agency that has thrived working as a trusted advisor for its client base. We work with individuals and businesses to lower their Total Cost of Risk. We analyze a client’s direct and indirect costs and implement risk reduction plans to address areas of business, hazard, or strategic risk.
