you own a boat, you may probably know the warm feeling when you enjoy your day on the boat with the sunshine and the cool breeze. No doubt, you will love to refresh your memories on the boat, which will force you to protect your boat with the best insurance. In this article let’s discuss some basic Facts about Boat Insurance.
Purchasing boat insurance makes the journey of you and your passengers happy with a peaceful mind while enjoying the weekend on the water. Sometimes, boat insurance might not be essential in your state, if so purchasing a policy must be the best consideration.
What are boat insurance coverage areas?
Like car insurance, boat insurance coverages also help in different circumstances.
This coverage saves your boat if it is damaged by accident or sinking. This coverage provides despite it’s on land or water.
You can select actual cash value or replacement cost coverage if your boat is being stolen or totalled.
- If you select actual cash value coverage, in the event your boat is totalled, your insurance claim will only consider the value of your boat at the time of the accident.
- Replacement cost value coverage doesn’t reduce the value of your boat, instead it will pay pack you the amount you need to repair your boat back to the original condition before the accident or they will replace it with another one as the same model of your boat.
If you damage someone’s boat by accident or injuries someone from an accident, liability coverage will cover the amount for their damage. In addition to that, it will pay the amount for any problem that arises due to your watercraft. This will also pay your legal payments if you are entreated to an issue covered by the policy, like a boating accident.
If you or your passengers faced any accident and get injured, this coverage will cover your medical fees.
Uninsured watercraft coverage
If your boat faced an accident caused by an uninsured boat, uninsured watercraft coverage will pay for your medical fees.
Additional services of boat insurance
Boat owner needs additional insurance for;
- Boat trailers
- Extra essential equipment such a fishing gear
- Boating appliances such as radar
Moreover, it’s significant to find coverage for fuel spills or wreckage removal if you face an accident on the water.
Exclusions of Boat Insurance
All the boat insurance policies have some categories that they don’t cover. For example;
- For any depletion due to regular boat trips
- Manufacturers faults
- Wrong boat design
- For overutilization
- Bug damages
- Mold damages
- Destructions happened from and aquatic lives or creatures.
Importance of operating a boat under the influence
According to the information from the U.S Department of Homeland Security and the U.S coast guard, alcohol is the main reason for many boat accidents that happened in 2019.
Drunken driving and the operation of a boat under the influence of any alcohol or drugs is against the law in every state. U.S Coast Guard impose that the Federal law restricted boating under the influence (BUI). So this law restricts all boaters from use vessels under the influence. Including foreign boats in the U.S.
Punishments for drunk boating may differ according to the state and jurisdiction of the waters. but it may include these.
- Huge fines
- Suspension or revocation of boat operator privileges
- Suspension or revocation of driver’s license
- Jail time
In addition to the punishments from state and federal law, your insurance company also consider them strictly. Such as if you face an accident from operating a boat under the influence, insurance may only cover your liability claim. It may not pay for the damage of your boat and there is a high chance of cancelling your insurance because of a drunk boating accident by your insurer.
Even though you are sentenced to BUI without any accident, your insurance company may take actions for you, like raising your insurance rate or cancel coverage. Although there is a chance of getting a new boat insurance coverage after the cancellation from the previous company, you may require paying large cash for the new insurance policy.
Boat insurances charges
According to Trusted Choice, an association for insurance agents, the average price of boat insurance is around $200 to $500 per year.
Factors that decide the boat insurance rate are;
- Price of the boat
- Boat length, age and type
- Engine type
- Place of anchorage
- Location where the boat use
- Boat owner’s level of experience
- Owner’s old claims
In addition to that, an insurer may also consider any safe boating course you have done as a factor of rating.
To reduce the boat cost, you can check for insurance discounts. They are,
- Tying many policies like boat and auto insurance
- Using coast guard approved fire extinguishers
- Staying without any claim for two years
- Certificated on boating and water safety courses
- Owning a diesel-powered boat.
Is it essential to have a boat insurance?
Some states will ask you for boat insurance. For marina and lender will need coverage even you dock your boat or finance it. Even your state doesn’t need insurance, imagine taking a risk without having boat insurance. If you faced an accident without having insurance all the necessary steps should take by yourself and you have to take responsibility for others. The average boat insurance pays about $11,000, according to the data of The Hanover Insurance Group. Without having any coverage may put you in trouble financially.
Your vessel’s size, type and value decide the best category of insurance you need.
Coverage for small boats:
Standard homeowners or renters insurance policies may offer coverage for your small boats like canoes or small sailboats. Thus, usually with limited property damage coverage. Homeowners insurance policies will offer coverage for the small boat, motor and trailer, without any liability insurance. But you can add the liability coverage for your home insurance policy as an additional charge.
Large boats coverage;
If you own a large boat like a yacht, you will probably require having boat insurance policy. If you have additional appliances you may need to have trailer coverage as well.
In addition to that consider umbrella insurance to improve your liability coverage limits. It will offer extra liability protection on your boat, auto and home, especially when you are sued for a higher boating accident.