Yes, you should get boat insurance, but you are not required to in most states!
However, just like you buy car insurance to protect your asset, you should do the same for your boat. Did you know that in 2020, around 719 people died in boating accidents? According to Statista, 3,191 people were injured. Both numbers are higher than 2019’s that saw 613 deaths and 2,559 injuries.
There are risks on the water too. Boat insurance will protect you and your loved ones onboard from theft, vandalism, and fire, which unfortunately happen every year.
To know what your policy should include, let’s talk about the basics of boat insurance:
Boat Insurance Coverage
There are different types of boat insurance coverage that are explained below:
This offers your boat protection against damaged caused by sinking or accident, and theft. Whether your boat is parked at the marina or sitting in your shed, this insurance will cover it on land, as well as water. You can either choose replacement cost coverage or actual cash value if the boat is stolen or totaled. The former option will compensate for the repair amount, and the latter will give you a lump sum based on the boat’s current value.
If you crash into a boat or injure someone while operating your boat, this coverage will pay for the damages. Liability insurance also covers legal fees if you are sued in a boating accident.
Medical Payments Coverage
This coverage is a type of add-on but is bought separately. It covers any medical bills after a boating accident.
Uninsured Watercraft Coverage
This coverage offers you protection when you get into an accident with an uninsured boater. It only pays for your medical bills.
What Is Not Covered Under Boat Insurance
- Manufacturer defects
- Wear tear due to regular use
- Faulty boat design
- Bug destruction
- Damage from aquatic life
- Mold damage
Boat Insurance Cost
A boat insurance policy usually costs between $200 and $500 annually. However, the price might increase based on how big your boat is. The following factors determine the insurance rate:
- Boat value
- Engine type
- Boat length, category, and age
- Place of anchorage
- For what purpose the boat is used
- The experience level of the owner
- Past claims made by the owner
*In some cases, the insurer also asks if you have completed any boating courses.
Mother Nature does not take a break. You are probably wondering why we are saying this. The point is: Even when your boat is in storage, it is vulnerable to damage. Disasters, like floods, fires, and hurricanes, can happen at any time. If you have a dock and your boat is usually tied to it, water damage due to high waves is also a possibility. Hence, always have proper boat insurance to protect your asset.
If you are looking for quality boat docks, visit the EZ Dock Texas website. They also offer do-it-yourself docks, which you can easily assemble on your own. For more information, call (800) 654-8168.