Many homeowners are under the impression that their boat is covered under the home policy. Unfortunately, boats are not always covered in this policy. Boat insurance covers damage in the event of an accident.
What is boat insurance?
Boat coverage is unique in that it combines home and auto insurance elements. Boat protection does not provide any protection for any event occurring outside of a body of water. Most people have a separate policy to ensure that their boat is covered in the event of an accident that may occur in water.
Who is it for?
This type of insurance is for anyone who owns a boat. If the boat is valued at $10,000 or more, one should definitely consider getting a policy. Any person who operates their boat in public waters should verify that they have adequate coverage.
How does it work?
There are two types of coverage: comprehensive and collision. If the boat is involved in an accident or some other event, boat is covered. Fault is not a consideration when assessing a claim. The property owner is only responsible for the deductible. Collision coverage applies when there is an accident involving a boat or another object. Comprehensive coverage applies if the boat is damaged by fire, theft or anything else that isn’t considered a collision. Actual cash value pays the market value for replacing the boat. Agreed value pays whatever the value of the boat was quoted by the customer. Total loss replacement pays for a similar boat with similar specs if the boat is damaged.
What are the coverage options available?
Emergency assistance covers any emergency services like fuel delivery or towing if a boat is disabled in the water. Personal effects protection actually increases the value of the coverage. Roadside assistance covers the boat and the trailer when items are towed. New boat price protection replaces the cost of a boat under two years old if it is damaged. Personal liability is ideal for damage to other boats where liability is considered. Medical payment coverage is for any medical costs associated with an injury or accident caused by the policyholder. Physical damage encompasses all things attached to the boat, including equipment and the trailer if an item needs replacement or repairs.
What are the advantages of having it?
The costs for repairs or replacement in the event of an accident can be excessive. If involved in an incident where liability is a concern, out-of-pocket costs can quickly climb out of control, especially if there are injuries in addition to property damage. Customized coverage protects individuals in the event of an accident or incident and provides additional protections for emergency assistance.
Homeowner insurance policies don’t cover all boats. Boats of a certain value should have a separate policy to protect against damage caused by collision or other incidents. Boat coverage provides protection for a variety of scenarios.