If you are a boat owner, you must know the answer to the question, “what is boat insurance?” With risks and liabilities facing almost everyone, every day, possessing coverage for your assets has become mandatory. A boat is definitely an owner’s priced possession. Caring for it and protecting it is essential to guard the investment you made in it.
A policy that covers a vessel from liabilities of an accident, theft and damages is boat insurance. While this is the basic form of boat insurance, there are coverage options to include the boat’s cargo, docking area, terminal, etc.
In addition to the need for basic protection against the above-mentioned things, you need to buy boat insurance for the following reasons.
Many state laws require a boat owner to purchase boat insurance.
If you want a loan to purchase your boat or want to get a loan with your boat as collateral, the financing company would require you to have coverage for your boat.
Your home insurance may not cover all the aspects of your vessel, so you need an exclusive policy covering your boat.
The term ‘boat’ in boat insurance includes any motorized water vessel such as a fishing boat, yacht, Jet Ski and pontoon boat. Kayaks, paddleboats and canoes do not come under this list. Moreover, your vessel is covered by a basic boat policy while in water. Any road accident while transporting your vessel must be covered by your auto policy.
A standard policy would offer collision, bodily injury, property damage, medical pay, comprehensive and uninsured boater coverage options. As additional options, you can obtain specialized coverage for certain elements. Total loss, fishing equipment, personal effects, roadside assistance, towing, wreckage removal and disappearing deductibles are some of the popular specialized coverage options.
It is up to you to get any specialized coverage, as the basic policy will sufficiently cover your boat. While the specialized coverage options are usually offered for an additional cost, some providers may add couple of these at no extra cost. Check with your provider and ensure you are buying only what you need.
Now that you know what is boat insurance, why you need one and what all are covered, you can proceed to buy a policy. You need to research many providers, compare quotes and finally choose a policy that meets all your needs. You can get the best deal (and save a lot) by picking a policy specific to your boat type, equipping your boat with all the essential safety features, taking a safe boating class and extending the lay-up period.