Proper Boat Insurance Coverage

Proper Boat Insurance Coverage

Art Glasgow, Peck-Glasgow Insurance Agency

Summer is the time of year to enjoy your boat.  Many people, however are unaware of the significant loss exposure associated with boat ownership.  Many consumers often misunderstand boat insurance coverage and think they have coverage included in their home or auto policy.

Most all personal auto policies exclude liability and physical damage for boats.  Homeowners policies restrict coverages to low value (usually $1,500 max) and low-powered boats (usually 25 Horse Power max).  The best place to start looking for coverage is to talk with your insurance agency about the proper coverage for boats.  There are many options, and a qualified insurance agent should offer you the coverages that you want and need.

Be sure that you are offered adequate liability insurance coverages.  You should have liability limits and if possible water skiers liability if you engage in water sports.  If you want physical damage coverage in the event the boat is stolen, crashed, etc… then choose the deductible that you like.  Deductibles usually are $250 and higher.  Optional coverages include Replacement Cost or Agreed Value. Most policies are written on and Actual Cash Value basis which includes depreciation.

One last thing, if you don’t already own a personal umbrella policy, buy one in addition to a watercraft policy.  This is especially important if you own a speed boat, a boat designed for skiing, or some other craft with a higher potential to cause damage or loss of life.  Umbrella policies are relatively inexpensive, and since most forms do not have limitations with respect to watercraft, they will provide excess limits above the liability coverage in the watercraft policy. 

Most of all enjoy your boat, but do be prepared by insuring it properly!  Insure to be sure!