For those who love spending time on the lake, river or sea, you may have invested in a boat or a personal watercraft. When buying a boat and or watercraft vehicle, you will need to get insurance for them. Sometimes people forget that they need to insure their boats or watercraft. You should also make sure you are protected as well. If you have recently bought a boat or water craft and are shopping around for insurance, InsureWise will tell you what you need to know about boat or watercraft insurance.
Basic Boat & Watercraft Insurance Coverage
When you have a watercraft or boat, a basic insurance policy should cover three important areas. The first is bodily injury of those who are on the boat or watercraft should you or another person get injured. The other area of a basic coverage is property damage. If the boat or watercraft is damaged or if another person’s property is damaged, the insurance will cover the cost to repair or replace the damages. The last area of coverage is medical. This is necessary if you or and other person is involved in an accident and there is ongoing medical care or bills. The insurance will help pay for bills. Along with these basic coverages, the policy will also include a deductible for property damage, theft and or medical bills. Most policies will also include a liability limit. The liability coverage usually provides financial protection in case you are the one liable or are the result of the accident.
How does Insurance Work on a Boat?
When considering insurance it is important to know that each watercraft or boat you own will need to be insured separately. Some insurance will have bundling options, so when speaking with an insurance agent make sure to discuss your options when covering multiple watercraft or boats. Another tip is to read over your policy very carefully. One aspect that is important to know is if the policy covers the owners as well as others you may have loaned the watercraft to. Most insurance policies should cover whoever is operating the watercraft, regardless as to whether you are the direct owner or not. However, read over the wording carefully, especially if you know you will be loaning out your boat or watercraft.
What is Excluded from a Boat Owners Policy?
Along with reading the policy coverage carefully to know what all is covered, it is also important to know what is not covered. For example, if you make self-modified speed enhancements to your watercraft or boat, you can lose your insurance coverage. Better performance and speed enhancement has made your watercraft much more dangerous. For this reason your insurance company has the right to cancel or deny a claim under these conditions.
Additional Insurance Considerations on a Boat & Watercraft Policy
Lastly, you can seek out additional coverage. Some examples of additional coverage that are often recommended are:
• Additional coverage for the cost of replacement of personal items that were lost or damaged while on the watercraft or boat.
• Additional coverage that will give the cash value of the watercraft.
• Roadside assistance is also beneficial if the vehicle or the trailer it is on is damaged or disabled.
• Policy includes coverage if the watercraft or boats sinks.