Homeowners insurance won’t or might not provide enough coverage for your boat. If it’s motorized, you won’t get any coverage at all. Auto insurance won’t cover your boat either, since it’s a watercraft and not a land-bound vehicle. That leaves you with the option of getting a specialized insurance policy to cover the needs of your boat.
The needs of your boat
Going for the specialized option is actually the right option. Your boat is a recreational investment that needs more than the standard limited amount of coverage provided by other insurance policies. Boats, like other vehicles, need insurance policies tailored to fit their purposes as a vehicle.
Though, many industry experts imply a tricky aspect of boat insurance. To start, buying boat insurance can differ between boats. While insuring one type of boat can feel like purchasing auto insurance, insuring a more expensive boat can mimic the process of insuring a home. Don’t get deterred by the vast differences in insurance enrollment, as it not going to exclusively apply to your boat.
Buying boat insurance for your boat is not going to be the same as another boater buying their policy. That’s why you need to focus on your own needs for your boat when you’re getting a boat insurance policy.
Many homeowners insurance policies provide a small amount of insurance coverage for boats, usually small boats with a small engine or no engine at all. Larger and more expensive boats naturally need a separate insurance policy to cover the entire boat.
You can potentially save money by bundling your boat insurance policy with any other insurance policies. This works best if you’re buying insurance from a single provider who happens to offer, let’s say, homeowners insurance, auto insurance and boat insurance in a personalized bundle for you.
Boat insurance provides coverage options like its homeowners and auto insurance counterparts. It protects you against liabilities incurred from third parties, typically offering you the option of completely replacing the watercraft or a comparable cash value settlement if completely lost.
In addition, this insurance policy also provides coverage in the case of someone getting injured while aboard or near your boat, your boat inflicting property damage or if your boat suffers any damages or losses. Comprehensive coverage, too, provides coverage against natural disasters, fires, theft, vandalism and other unexpected occurrences that can happen to you, your possessions and your boat.
Some boat insurance policies can actually be suspended for specific periods when your boat isn’t in use or in storage. So, if you’re not traveling on the water in winter, that might be a good time to suspend your coverage!