If you own a boat, boat insurance can be a crucial safety measure. It can provide you peace of mind while sailing and protect your investment. Common concerns such as damage, theft, and accidents are prevalent. But what is covered by boat insurance?
Here, we will discuss its main protections and why every boat owner should consider implementing an insurance policy.
What Is Boat Insurance?
Boat insurance provides coverage for damages or accidents to your boat. Some boat insurance plans provide property damage liability insurance and bodily injury coverage, which helps cover any damages or injuries your boat may cause.
This insurance covers the most of motorized watercraft, including fishing boats, paddle boats, pontoon boats, recreational boats, and yachts. Generally speaking, this type of insurance does not cover personal watercraft like jet skis, kayaks, and canoes.
Your homeowner’s policy may cover certain small watercraft. You may be able to buy additional coverage or add an endorsement for these.
Many boat owners are unaware that their home or auto insurance does not cover their boat, which results in them being under-protected and underinsured.
Types of coverage provided by boat insurance
Understanding the various types of boat insurance coverage can ensure comprehensive coverage on the water.
Third-party liability coverage
Third-party liability insurance protects you against lawsuits alleging you accidentally hurt or damaged someone. This is crucial in collisions with other vessels or property, where you may be responsible for repairs or medical expenses.
Comprehensive coverage
The comprehensive coverage protects against theft, vandalism, fire, and accidental damage to your boat and equipment. It covers a range of situations, including theft from the marina or damage to your yacht during a storm. Ask the insurance company for additional details if you would want to include contents coverage, which may be offered as an extension for liveaboard vessels.
Personal accident coverage
Personal accident coverage, which covers medical costs and reimbursement for potential onboard injuries, including limb loss, blindness, or accidental death, can help safeguard you and your passengers. In the case of an accident, it may provide financial support.
Equipment and personal belongings coverage
This policy safeguards the safety of the boat’s equipment and personal belongings, including electronics, fishing gear, and navigational aids. Keep in mind that coverage limits may apply to specific high-value products. In these cases, the usual insurance excess would be applicable.
Salvage and wreck removal coverage
Salvage and wreck removal coverage is a type of insurance that covers the expenses of removing a sunken boat. It’s helpful if an accident occurs and your vessel becomes a hazard or an environmental concern.
Environmental Coverage
Environmental damage coverage covers the costs incurred due to pollution or damage caused by your boat in an insurable event. It assists you in meeting legal requirements and paying for cleanup costs. This is especially crucial to protect waterways and marine life.
Additional Coverage Options
Additional coverage is offered for personal property, fishing gear, oil spills, medical expenses, and roadside assistance. This is on top of coverage for boaters who are underfunded or uninsured.
Typical yacht insurance policies provide coverage for the following:
- Covers accidental collision or impact to the boat’s hull, equipment, sails, motor, or furnishings.
- Covers damage or loss due to theft, vandalism, lightning, or wind.
- Covers damage to another boat or property.
- Covers bodily injury or death caused by boat.
