Before You Hit The Waves - Boat Insurance
Summer has begun! It's time to get your boat back on the water, but have you taken the time to check your existing insurance or considered the risks of going without insurance?
From a legal standpoint, you are not required to have liability insurance in order to purchase, register, or maintain ownership of your boat in most states. However, certain states will require you to have liability coverage on certain types of boats. Often marinas and community associations will require that you have insurance. Unless you plan to operate your boat and store it entirely on your own property, then boat insurance will be an essential requirement for you. Regardless, it’s best to do your research before hitting the water. While it may not be a legal requirement in most states, there are many reasons to have boat insurance to properly protect your investment.
If you will be taking a loan out to purchase your boat, the loan company or bank will require you to have coverage for physical damage to the boat. While the state laws don’t require you to have insurance on your boat, your loan company will require it in order to get approved for the loan.
Generally speaking, if your marina, bank, or state requires you to have boat insurance, then your homeowners' insurance policy won’t be sufficient to provide the required coverage. Boat insurance is its own entity and needs to be treated as such.
Boat insurance policies that include physical damage to the boat, generally speaking, are “all risk” policies, which cover a vast variety of risks. If you have any sort of claim on your boat, including vandalism, lightning, fire, theft, grounding, or sinking, then you are usually covered. Additionally, the coverage is all based on what you select when looking for a policy for your boat insurance, and our insurance agents can help you with selecting the right coverage to suit your needs. The more your boat is worth, the more coverage you may want to consider so you don’t experience a huge financial loss. If you have an umbrella insurance policy, it will require certain liability limits on your boat insurance policy, in order to prevent a gap in coverage.
Want to enjoy worry-free, beautiful days on your boat? Contact us today.
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