Boat Insurance

Understanding Boat Insurance

For people living near a large body of water, boats are a part of the lifestyle, especially during the hot summer months. It’s common to find different sizes and types of boats such as leisure crafts, fishing boats, and personal watercrafts dashing along the water or bobbing in ripples.


What the boat coverage can do

Boat owners need to protect their prized and valuable watercraft with boat insurance so as to get compensation in the event of an accident. This insurance coverage will protect you and your boat against the following:

  • Liability- it will protect the passengers on your boat or aboard another boat in the event of an accident. It also offers protection for those on tubers or skiers.
  • Damage to your boat including theft or loss of any equipment attached to the boat.
  • Damage caused by your boat on another person’s property.
  • Vermin damage-everyone knows how raccoons like hiding in boats.
    • In some places like Canada, you ought to have a Pleasure Craft Operators Card to operate a motorboat, or else you can be fined $250 for operating one illegally and void any available insurance coverage.

Some of the factors that insurers consider when evaluating the risks of your boat before issuing boat insurance include:

  • Type, size and, age of your boat
  • Engine size
  • Who will be operating the boat
    • This is important because some boats have age restrictions on people who can operate the boat.
  • Boat’s value
  • The location where the boat is used
  • Where the boat will be stored during winter.

Remember, some insurance companies have restrictions on how far you can travel by your watercraft or boat both on and off the water. Hence, when speaking to your insurance broker or agent, consider asking about that restriction, especially if you think you may wish to take your watercraft on a long voyage.

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