Congratulations on purchasing your new boat! Now, you need to protect your investment with proper watercraft insurance. Since watercraft come in all shapes and sizes, watercraft insurance is not a one-size-fits-all coverage level. It is important to talk carefully with your insurance agent about your watercraft insurance needs. How often will you use your boat? Will you live in it? While some people assume that their homeowner’s policy covers their boat as well, it doesn’t in most cases. The good news is that you can often save money by bundling your insurance policies like your homeowner’s policy, your auto policy and your watercraft insurance.
Watercraft insurance is not exactly like homeowner’s insurance or auto insurance. Here are some things to know about watercraft insurance:
- Liability coverage: Much like homeowner’s policies, this protects you in case anyone is injured on your boat.
- Valuation: You will have to decide whether you want to cover the replacement value of your boat or the actual cash value of your boat. Boats generally depreciate like cars.
- Bodily injury: If you have a boat accident and someone is injured, this coverage is similar to auto coverage.
- Property damage: Also, much like auto coverage, if your boat is damaged in an accident or if you damage another boat or other property like a dock, the property damage coverage kicks in.
- Other additions: You can also have comprehensive coverage that protects against theft, fire, flood and more. What if you have an accident with an uninsured boat? What if you need your boat towed for repairs? These are options you can add to your coverage.
You can often save money on watercraft insurance by investing in safety features on your boat, taking a boat safety course, or agreeing to a longer off-season when your boat isn’t in the water. Talk to your insurance agent to make sure your new watercraft insurance is exactly what you need.