According to Texas Parks & Wildlife, there were nearly 4,168 boating accidents in 2019, resulting in approximately $55 million in property damage. In 2021, the Coast Guard reported a 40% increase in accidents in the first three quarters following the lifted COVID-19 restrictions. This increase can be attributed to thousands of locals headed to the coastline, lakes, and rivers for fishing, swimming, and leisure boating in Texas following months of isolation.
With the risk of accidents and damage statistically high, boat owners in Texas need to protect themselves and their investment. The best way to do that is through watercraft insurance and not just taking boating lessons or investing in boat safety equipment.
In this post, we’ll share a simple guide to Texas boat insurance so boat owners can understand how it works and protects them from the unexpected.
Is Watercraft Insurance Mandatory in Texas?
The state of Texas does not legally require boat owners to get insurance for their boats or watercraft. However, this doesn’t mean watercraft insurance isn’t essential. Like auto insurance, it protects your watercraft against any risk that may lead to loss or damage. So, if you’re considering purchasing a motorized boat, jet ski, yacht, or ship, you should consider getting at least minimum coverage.
Types of Boat Insurance Coverages and Polices
Most insurance policies protect owners from various types of physical damage, like inclement weather (storms), vandalism, collision, and theft, etc. The following are the most common types of boat insurance coverages and policies:
1. Liability Coverage
Liability coverage covers medical payments and injuries to others in the event of a boating accident. Without it, you could have to pay the hospital bills from your pocket, which can leave you in financial strain.
2. Replacement Cost Policy
This policy covers vessel repairs or replacement in the event of damage. It reimburses owners for the amount required to return the boat to its pre-damage condition or replace it with the same make and model. However, this is subject to availability, especially if you own a vintage or old model. In this case, they will replace it with a non-identical make and model.
3. Actual Cash Value Policy
This policy is similar to the replacement cost policy. However, it compensates boat owners according to the current value of their watercraft by taking depreciation into account. This policy is suitable for new or recent models, especially those in high demand.
4. Limited or Named-Peril policy
The limited or named-peril policy reimburses owners for specific losses, such as tornadoes, collisions, lightning, hurricanes, and fires. The policy will not cover any damage type not listed in it.
5. Agreed Amount Coverage Policy
An agreed amount coverage policy reimburses boat owners with the amount agreed upon beforehand. Therefore, it doesn’t matter if the damage sustained exceeds that amount or the payout isn’t according to the current value.
Where to Get Texas Boat Insurance?
The following is a list of the most popular boat insurance companies in Texas:
- Progressive
- BoatUS
- Foremost
- Chubb
- State Farm
- National Boat Owners Association, etc.
Conclusion
Boats are a big purchase, and just one collision or accident could incur severe financial damage. Therefore, Texas boat insurance is the best way to prepare for the unpredictable proactively. At EZ Dock Texas, we aim to educate our clients and readers regarding the different ways they can protect their vessels and waterfronts. We also provide a host of docking accessories to protect your boat, such as boat lifts, dock bumpers, storage straps, etc.
For more information regarding our full range of products, including stationary or floating docks, feel free to visit our website or call (800) 654-8168.
