Boat insurance is essentially a blend of home and auto insurance. It provides liability coverage for the policyholder if someone is injured on his or her boat. It also provides coverage for injuries or damage caused by the policyholder’s boat. However, unlike home and auto insurance, individuals can put a hold on their boat insurance for the period of time they do not use the vessel.
How Does Boat Insurance Work?
Like all other insurance policies, the boat owner must decide how much coverage they need, the types of coverage they require, and a deductible. In the event of an accident, boat insurance functions much like auto insurance.
- If the owner is at fault, their boat liability insurance covers the damage based on the policy coverage
- If another boater is at fault, their policy covers the damage
- If the other individual is at fault but lacks the necessary insurance, the individual’s uninsured boater’s policy would cover damages assuming the individual elected to invest in that kind of coverage
Exclusions to Consider
Many boat owners want to know what their policy covers, but sometimes they forget to ask what is not covered. For example, many policies provide coverage for passengers in the event of an injury. However, water skiers are not always covered. The same holds true for theft. While many policies provide coverage for the outright theft of the craft, they often exclude the theft of personal belongings.
Unusual Coverage Circumstances
Many boat owners tow their boat. Policyholders can rest easy knowing their boat is insured even when it is not in the water. However, the individual’s auto policy covers the boat while it is in transit. Homeowners insurance may provide coverage for damage to the boat while it is stationary on the individual’s property, but it does not usually cover theft or vandalism. To ensure complete coverage, individuals can invest in an umbrella policy as well.
To learn more about the fine points of boating insurance, contact the experts at The Reilly Company.