Why Do I Need Boat Insurance?
If you financed your boat with a loan or park it in a slip, your lender or marina will likely require proof of coverage. It is also smart to protect yourself, your passengers and your vessels from any unanticipated accidents or damage to your vessel.
What Does Boat Insurance Cover?
Similar to auto insurance, boat insurance offers several different coverage types wrapped into one policy. Standard coverage types include:
- Property Damage Liability Coverage: This pays for damage which occurs when your boat collides with another watercraft or another individual’s property. It helps pay to repair or fix other boats if you have an accident and also for property damage you may cause.
- Personal Liability Coverage: This coverage pays for others’ injuries where you are at fault while operating your boat or watercraft, including legal fees, court judgments and settlements.
- Physical Damage Coverage: This coverage helps pay to repair damage to your boat resulting from an accident, or replace your boat if it is destroyed by fire, lightning, storms or it is stolen. Whether your vessel is in the water or you are trailering it across the country, damage can be covered.
- Medical Payment Coverage: This coverage reimburses you for your own medical costs if you or your passengers are hurt in a boating collision.
- Uninsured or Underinsured Watercraft Coverage: Similar to auto insurance, while you hope your fellow boaters carry an appropriate amount of coverage, often some do not. If an uninsured or underinsured boater hits your vessel, causing you injuries, this coverage can pay for your medical bills.
Optional Boat Insurance Coverage
If you use special equipment while on the water, you will want to ensure it is financially protected as well. Thus, boat owners can add optional coverage for equipment such as trailers, fishing equipment and other boating accessories.