5 Things You Need To Know About Boat & Watercraft Insurance
In the U.S. alone, over 75 million people take part in recreational boating as revealed by the National Marine Manufacturers Association. Boating is often an exhilarating activity that is often accompanied by the buzz of an outbound fishing line, the snap of the mainsail, the thrum of the wake against the hull and the wind in your hair.
Wherever boaters are found, insurers are bound to be there also. But when it comes to obtaining proper insurance for your boat, it is very easy to feel over your head. Insuring a yacht has much in common with buying home insurance for a small house, while insuring a motorboat can be compared to buying auto insurance.
If you own a boat, it is recommended that you protect it as much as you would do to a car. This emphasizes the need to get your boat covered with an insurance policy. Here are 5 important things you need to know about Boat & Watercraft Insurance.
Know Your Liability Limits
It is important to speak to your broker about your liability limits. Essentially, any small craft without a motor such as paddleboats, kayaks, or canoes can be potentially included in your home or seasonal home insurance.
Boat Insurance Is Not A Requirement But It Is Recommended
Having a Boat & Watercraft Insurance will not only give you peace of mind, it can go a long way to protect you from:
- The damage your boat or watercraft may cause on someone else’ property.
- Theft or loss of attached equipment.
- Damage to the boat.
- Liability coverage for tubers, passengers, skiers and others towed in the water or aboard other watercraft.
Note that insurance is highly recommended for personal watercraft vehicles (PWC) and other larger boats with bigger motors.
Your Boat & Watercraft Insurance is Liable to be Affected by other Factors
Your boating insurance policy could be affected by a wide range of factors including factors like the size of the motor, location, its value and the lake on which it is used on. However, try as much as possible to ensure that your insurance policy is in line with the needs of your specific boat.
Consider Off-Season Damages
One of the biggest challenges with storing boats over the winter is snow load. During the off-season, there are certain damages that may occur. So, ensure to speak to your broker about these off-season damages to know if they will also be covered.
How are Claims Settled?
Depending on the age of the boat or the individual insurer, claims on the boat are either be settled on actual cash value or agreed-upon value. Rather than settle claims on newer boats on actual cash value, some insurers will prefer to do that on an agreed-upon value.