What Does Boat Insurance Really Cover?

What Does Boat Insurance Really Cover?

If you have a small Jon boat, or a canoe, you probably don’t need boat insurance.  Any boat or watercraft above this level should have insurance. 

If you have a jet boat, sailboat, yacht, personal watercraft, or any other type of boat that reaches speeds over 25 miles per hour, you should consider looking into a boat insurance policy.

Liability coverage only offers financial protection if your boat causes damages to others.  The Insurance Information Institute states that coverage amounts usually range between $15,000 to $300,000.

A general boat insurance policy should cover the following areas:

  • Damage or destruction that was produced by a collision, fire, lightning, theft, or vandalism.
  • All damage that is caused to a boat or permanently attached equipment.  These items could be oars, anchors, or water skis.
  • If a guest is driving your boat with your permission, guest passenger liability coverage will pay for legal expenses in the event of an accident or crash.
  • Medical payment coverage pays for the medical costs for you and the passengers that occupy your boat.
  • If you were to crash into someone else’s property in your boat, property damage liability coverage pays for those damages.
  • Bodily injury liability coverage will cover expenses incurred when someone is hurt on your boat.

On the other hand, there are some items that your boat insurance policy will not cover.  Some of these items are:

  • Day-to-day wear and tear on your boat or watercraft.
  • Machinery damage or defective machinery.
  • Damages that are cause by water life, such as sharks.
  • Damages that are cause by any other creatures (mold, insects, animals, etc.). 

When creating a boat insurance policy, make sure you understand exactly what your policy covers, and what it does not.  You don’t want to purchase a nice boat, have an issue or accident, and find out that there are certain areas that your policy does not cover.  If you are searching for boat insurance, you should consider reaching out to Safe Harbor Insurance to get a quote – you don’t want to be stuck “dead in the water!”

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