Watercraft Not Covered With A Normal Policy
What Is Watercraft Insurance?
This is an umbrella term for boat, personal watercraft, and yacht insurance. You receive protection for damages to vessels with motor power providing you have a minimum horsepower of 25 mph. Insurance policies provide protection for the cost of boat damage, boat loss, towing, and theft. Some policies include liability for bodily injury to individuals other than the family and owner.
Your policy may include liability medical payments for injuries to guests, the owner, and family. Certain policies require you to purchase an add-on for additional liability coverage. The type of insurance policies we recommend is dependent on the size of your boat.
Watercraft Insurance Exclusions
The majority of general liability policies have an exclusion under Bodily Injury and Property Damage or Coverage A entitled Watercraft, Auto or Aircraft. This eliminates coverage for property damage or bodily injury due to operation or ownership of the watercraft and maintenance. Claims for any watercraft you or anyone else insured are excluded when your boat is entrusted, borrowed or rented to anyone else. This exclusion applies to the boat operator in addition to anyone monitoring or supervising this individual.
A good example is allowing an experienced helmsman to steer your boat and drop anchor. This individual then allows another person to steer your boat. Your boat is then involved in an accident with a rowboat resulting in one of the passengers becoming injured. The individual steering your boat is then sued by an injured passenger claiming negligent operation resulted in the accident. The lawsuit also includes negligent entrustment claiming the accident occurred due to improper supervision. Your liability policy excludes both claims due to the watercraft exclusion.
What is Covered By Watercraft Insurance?
Your coverage depends on your specific insurance policy. The most common boat or yacht insurance helps to protect your watercraft from specific risks. A good example is property coverage helps cover the cost of repairs to your boat from damage resulting due to an accident. Insurance policies can also help with the cost of replacing your boat due to theft. This coverage generally protects your boat on both land and water.
When you purchase insurance for your boat, you may have the option to choose between two different types of coverage, agreed amount coverage and actual cash value coverage. Agreed amount coverage assists with repair costs according to the value of your boat. You and the insurer agree on this when your coverage is purchased. The depreciation value is taken into account with actual cash value coverage when your repairs are paid.
Different Types of Coverage
If you are responsible for an accident resulting in damage to another individual’s property, the expenses incurred may be partially covered by liability coverage.
Uninsured Watercraft Coverage:
We want you to consider the consequences of a collision between your watercraft and an uninsured boater with injuries to yourself and your passengers. You may receive help with your resulting expenses through uninsured watercraft coverage on your insurance policy.
Medical Payments Coverage:
Consider a boat accident where injuries are received by you or your passengers. Medical payments insurance coverage can assist with expenses including medications, hospital bills, and x-rays.
The Cost of Boat Insurance
The average boat policy includes liability coverage for $300,000. Your coverage can vary between $100,000 and $1,000,000. If your assets are significant, we recommend purchasing more coverage.
Consider the number of months per year you use your boat and how many months your craft is in storage. Ask about the qualifications for a lay-up discount. This enables you to pay a discounted rate for each month your craft is in storage.
We also want you to know your boat’s navigation territory will affect your rate resulting in variations. A good example is using your boat on coastal waters is more expensive than on either lakes or inland waterways.
Boat Insurance Considerations
There is generally a specification in your insurance regarding where you can take your boat and still have coverage.
This includes boat coverage for property damage when your boat is not in the water during the off-season.
On-Water Assistance and Towing:
This covers running aground and unexpected breakdowns.
Ice and Freeze Coverage:
If your water systems or boat engine are damaged by cold weather, your bill will be covered.
Personal Effects Coverage:
Expensive equipment on your boat is protected including your fishing gear.
Fuel Spill Liability Protection:
If you experience an accidental fuel discharge from your watercraft, the cost of your clean-up is covered.
If your boat causes damage to someone else’s property you are covered.
Hurricane Haul-Out Provisions:
The cost of removing your boat from harm’s way prior to a windstorm is covered.
We recommend considering a wide range of factors before your purchase boat insurance or yacht insurance. You can insure virtually any vessel for the right price. To make certain you purchase the best policy for your needs, we recommend considering the following.
- Age of your boat
- Condition and whether or not the US Coast Guard Standards were met at the time of construction
- Type including outboard, inboard, cruiser, performance, utility, saltwater fishing, and bassboat
- Where your boat is operated including lakes, rivers, oceans, and bays
- If your boat is owned by more than two people
- Houseboats without a motor
- If your boat is your primary residence