Whether you go fishing on your yacht or you’re cruising around the lake on your speedboat, you need to keep yourself covered with Boat Insurance. While there’s no legal requirement to get boat insurance, it’s wise to get coverage. There are a wide range of scenarios that could cause damage to your boat, or even for you to cause damage to another boat.
Boat Insurance protects you from the worst-case scenario.
Insure your boat and belongings from theft or damage
If your boat ends up in an accident or sinks, your Boat Insurance will cover you for the cost of replacement or repair. For example, if your boat slips its mooring in a storm and ends up on the rocks. Any repair work to your hull would be covered. With certain coverage you would also be covered for theft of personal property on the boat.
Protect yourself from personal liability
While there’s no requirement for insurance. In the event of an accident, a boat owner is legally responsible for up to $1.5M in liabilities. This is one of the key benefits of boat insurance, coverage from personal liability in the case of an accident with multiple parties.
Cover additional additional expenses in an emergency
Boat insurance will also cover those unexpected costs associated with an emergency. If you’re broken down out at sea or on the lake, your policy might cover the cost of emergency towing or even a rental expense.
What to look out for in a Boat Insurance policy
Although Boat Insurance covers many situations, there are a few things to look out for before you commit to a policy:
The maximum amount covered due to lost or damaged belongings, personal liability, or additional expenses.
The amount you would have to pay if you make a claim.
Scope of Policy
Boat Insurance doesn’t cover everything. For example, your boat trailer might not be covered in a standard policy.
Determining the cost or coverage of the three factors above can determine the price of your policy. For example, a larger coverage limit commonly leads to a higher monthly cost for your insurance policy. Other factors that could affect the cost of your policy include:
Your level of experience as a boater
Where your boat is moored
Your insurance history
Boat Insurance may seem like another cost you don’t want to pay for when mooring fees, maintenance fees, and other costs are on the horizon. But having Boat Insurance protects you from the worst-case scenario. In reality, the best case is that you’ll never have to use the policy. But if your boat is ever damaged or stolen or you’re facing a lawsuit or additional expenses due to an act of god, Boat Insurance may save you from an enormous financial burden.