Boat insurance is for more than just boats. The insurance covers anything from a typical boat to a jet ski to a small cruiser. For insurance purposes, boats are usually defined as watercraft 26 feet or less in length, depending on the design and the insurer. In some cases boat insurance is called watercraft insurance. Coverage provides standard and specific coverage for losses or risks that boat owners face.
Standard insurance is similar to standard car insurance, but car coverage doesn’t cover boats. Some homeowner’s policies provide minimal boat coverage for off-water occurrences, but that’s insufficient for situations that arise on the water. The risks associated with water travel are different from those that occur on land.
Boat insurance covers bodily injury, comprehensive coverage, medical payments, collisions and uninsured boaters. It can also cover on-water towing, wreckage removal, fuel and oil spills, and theft of fishing and electronic equipment. State-specific coverage is available in some instances, like Florida hurricane haul-out and Wisconsin freeze coverage.
Before buying insurance, the policyholder must decide on the coverage and the amount of the premium and deductible. As for filing a claim, that works just like a car insurance claim. The policy will define where you’re covered, so it’s important to know what you’re buying. You might not be covered all the time. For example, a claim filed in November might not be insured because your coverage might lapse at the end of October.
When injuries and property damage occur in a boating accident, the cost can be huge. Medical costs plus lost income for the injured person can cause a person to go bankrupt. At least with boat insurance, the policyholder can rely on help from the insurance company.
No matter the size or type of your boat, you should protect your investment.