Buying a boat is no small decision. Owning a watercraft of any kind requires a lot of time and money in order to ensure that it will provide you and your family with a safe and enjoyable recreational activity. When you consider the costs associated with owning a boat, you need to add insurance premiums to your list.
You will want the maximum coverage available to you to be sure that you protect your original investment. Be aware that the extent of your coverage is based on your boat's size and type. The majority of insurance carriers will provide only limited coverage for property damage for small boats like canoes, small sailboats and small powerboats with less than 25 mile per hour horsepower. Such crafts are covered as part of your homeowner's or renter's insurance policy, and coverage is usually limited to 10% of the home's property value; boat, motor and trailer combined. Liability coverage is usually not included; but it can be added as an endorsement to your policy.
If you own a larger and faster boat or a yacht, you will need to buy a separate boat insurance policy. The size, type and value of the vessel, as well as where you sail, are all taken into account to determine your premiums.
When you purchase a separate policy to cover your watercraft, it will include coverage for physical loss or damage to the hull, machinery, fittings, furnishings and permanently attached equipment for an agreed value. The liability portion of this type of policy covers:
Liability limits begin at $15,000 and can be increased to as much as $300,000. Deductibles for property damage are $250 for theft, and $500 and $1000 for medical expenses. Talk to your carrier to see if higher limits are available. You will need to purchase additional coverage for trailers and other accessories. Be sure that special equipment kept on the boat, like fishing gear, is covered. Also, ask if towing coverage is included in your policy.
Just like with car insurance, carriers will offer marine policyholders discounts under certain circumstances. If you own a diesel-powered vessel, you may be entitled to a discount because these boats are considered safer to operate than gas-powered ones. Diesel fuel has less of a tendency to explode than gas does.
If you carry Coast Guard approved fire extinguishers and ship-to-shore radios on board; that will also merit you special consideration by your insurance company. So will taking safety education courses offered by the Coast Guard Auxiliary, the U.S. Power Squadrons or the American Red Cross.
A spotless accident record on sea has the same value as a spotless driving record when it comes to discounts. If you have two years in which you didn't file any claims that can translate into lower premiums. Insurance companies also reward policyholders who have multi-policies for a car, home and boat with them.
Insure your boat and set sail this summer without any worries. After all, didn't you buy it to help you get a little rest and relaxation?
