The Must Knows of Boating Insurance

Posted By on September 15, 2015

Boating can be one of the most enjoyable activities out there. The thought of the wind blowing through your hair while waves crash against the side of the boat can be exhilarating.

According to some recent data, roughly 75 million Americans enjoy boating every year. There are also many companies that offer boating insurance.

In fact, most of the major players in the insurance industry offer insurance for boats. With such a wide range of options, it can be difficult to know what company to choose. When it comes to insurance for your boat, you need to get the facts.

What You Must Know About Boating Insurance

First, you need to understand why you actually need the insurance. A lot of homeowners believe the myth that the insurance policy they have for their home will cover their boat.

While this is a possibility, it’s not very common. Some homeowner’s policies offer coverage for a tiny boat. For example, it might cover a small boat that has no engine, such as a small sailboat.

The reality is that you’ll need separate insurance if you’re spending $10,000 to $20,000 on your boat. Since a boat is unique, it needs to have its own policy. However, it’s a good idea to try to bundle your insurance policies because it can save you money.

The Difference between Boat and Auto Insurance

In some ways, boat insurance is similar to automobile or home insurance. For example, insurance will cover your boat if someone gets injured while riding in it.

This is also how homeowner’s insurance works. A policy for your boat will also give you the choice of a replacement or give you the cash value of your boat if it’s damaged and considered a total loss. It’s very similar to auto insurance because it offers similar forms of coverage, such property and bodily damage.

Comprehensive coverage will protect you from property damage, vandalism and theft. The insurance for your boat is also similar to home and auto insurance because you might be forced to suspend coverage during times when the boat isn’t being used.

Does Insurance Offer Coverage When The Boat Is Outside Of Water?

Although it might seem weird, most boat insurance policies will cover your boat even when it’s not in the water. However, most policies require the boat to be attached to your truck or car, and whenever you’re towing your boat, your auto insurance policy takes over, so your boat is bound by the restrictions of that coverage.

Depending on your situation, it might make sense to consider an umbrella policy. Another important fact is that most policies have navigational limits, which means your boat won’t be covered everywhere. These are some important facts about boating insurance that everyone should know.