luxury yacht in the ocean, must-read guide for boat insurance

Must-Read Guide for Boat Insurance

Read the following Q&A (it’ll take less than 10 minutes, we promise) to find out the basics of boat insurance. For starters: Is it expensive? (Actually, it’s a pretty good deal.) Is it required? (Sometimes.) Should I get it anyway? (You betcha!)

What is boat insurance?

Boat insurance covers the financial risks associated with boating. Just like auto insurance, boat insurance protects you if you have an accident while boating that results in injury or property damage to you or someone else. It also pays for damages resulting from theft, fire, vandalism and severe weather events.

How much does boat insurance cost?

Generally, boat insurance costs from $200 to $500, or 1.5 percent, of your boat’s value annually.

Factors affecting cost include:

  • Size, age, type (power or sail) of boat and how much it’s worth
  • Year-round or seasonal use
  • Navigation area (salt or fresh water)
  • Your boating record and claims history
  • Amount of coverage and deductible

Is a boat covered under homeowners insurance?

If you park your small boat at home, it might be covered for fire, theft or vandalism under your homeowners insurance, but home insurance won’t provide the coverage you need when you’re on the water. For that, you need insurance that covers you and your boat if you have an accident.

What does boat insurance cover?

Basic boat insurance covers:

  • Injuries or damages you cause to others while boating
  • Damage to your boat caused by fire, theft, vandalism, storms
  • Damage to your boat if you collide with another boat or object (dock)
  • Injuries/damage if an uninsured/underinsured boater hits you
  • Medical expenses incurred by you and/or your passengers following an
    accident

What kind of boat insurance do I need?

The most basic kind of boat insurance you need includes liability, uninsured/underinsured boater, and collision/comprehensive. These cover damages to you, your passengers and your boat as well as any injuries or damages you cause to others. Additional coverage is available for boat accessories, trailers, fishing gear and even towing.

Do you have to have insurance on a boat?

Only Arkansas, Hawaii and Utah require boaters to have insurance. If you dock your boat at a marina or finance it, you also may be required to have boat insurance. Even if your state doesn’t require boat insurance and/or you own your boat free and clear, it’s still the safest way to protect your investment.

Summary

Do you know taking a safe boating class might lower your insurance premium? Do you know all the various insurance discounts available to boaters? Do you know if you get your boat insurance from the same provider as your homeowner’s insurance, your premium will probably be less? Do you know choosing insurance based on price is not the best idea?

If you answered “no” to any of these questions, that’s OK. But, that’s also why it’s important to work with an insurance advisor who is familiar with the insurance marketplace and is experienced at combining personal insurance policies to lower costs.

Remember, all it takes is one collision to damage your boat, or worse, injure you and your passengers or another boater. And, the cost of inadequate or no coverage carries a heavy price tag.

You can count on the insurance advisors at JAISIN to determine the coverage you need based on your risk factors, shop the market for competing quotes from several carriers and find the most comprehensive boat insurance for your needs.

Boat insurance is a small investment to make for the peace of mind and protection the correct coverage provides. Click or call JAISIN Insurance Solutions today to talk with one of our experienced boat insurance advisors. And, while you’re at it, ask for a quote.

Jason Bishara
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