Boat Insurance: Why you need it and what it covers

Insights Into Why You Should Have Boat Insurance

It’s time to get your boat ready for the season.

You’ve tuned it up, filled it with fuel, and now you are about to set sail. But before you hit the open water, there is one important detail that shouldn’t be overlooked: boat insurance.

Whether you plan on going out for a leisurely afternoon cruise or a weekend of fishing fun, having coverage will give you peace of mind, knowing that your vessel is protected from any unexpected accidents or mishaps while out on the water.

In this article, we’ll explore why you should have boat insurance and why proper insurance coverage is an essential part of all trips by the sea!

Homeowners Insurance Coverage is Limited

Your homeowner’s insurance policy may cover your boat, but it likely only covers it while it’s on your property.

Boat insurance typically offers more comprehensive coverage, including:

Property damage liability insurance

It is designed to cover the costs of any damage you may cause to someone else’s property in the event of an accident. If you’re found at fault for an accident that damages another person’s boat or personal watercraft, this insurance can help cover the repair or replacement costs.

Collision insurance

Collision insurance is optional and can be added to your policy to cover the costs of repairing or replacing your own boat or PWC if it’s damaged in an accident.

Bodily injury liability coverage

This is part of your boat insurance policy that covers the costs associated with injuries to other people if you’re found to be at fault for a boating accident. This insurance can help cover medical expenses, lost wages, and additional related costs.

Hull coverage

Coverage designed to protect your boat from physical damage, including damage from fire or windstorms. This type of insurance can also cover other equipment, such as trailers, motors, and accessories.

Fuel spill liability insurance

This separate policy provides coverage for any fines or damages resulting from a fuel spill. This can be an important piece of coverage to have in the event of an accident involving fuel leakage.

Who Needs Boat Insurance?

While only two states require boat insurance coverage by law, it’s important to note that many banks may need insurance for you to finance your boat. Some lenders may even “force place” a marine insurance policy on your boat if you don’t furnish proof of insurance.

Aside from legal and contractual requirements, your personal risk tolerance is an important factor to consider.

What Kind of Boat Insurance Should You Get?

Boat insurance typically falls into three categories:

1. liability
2. uninsured motorist
3. collision/comprehensive

However, the coverage you should have always depends on your needs.

To know which type of boat insurance is best for you. It’s always helpful to talk to Northeast – MetroWest Insurance Agency directly to talk with a specialized insurance representative.

Operating a boat can come with inherent risks, and insurance can provide peace of mind in case of unexpected repairs or accidents.

Before making a decision about boat insurance, it’s essential to assess the risks and benefits. Consider your circumstances, and ensure any applicable insurance requirements with your state marine board or other governing body. By doing so, you’ll quickly determine why you should have boat insurance.

If you’re preparing to launch your boat and reviewing your insurance, contact Northeast – MetroWest Insurance Agency today. We can provide a competitive quote for your boat insurance and help you secure your boat investment.