Boat insurance, like any other type of insurance, exists to protect owners against financial hardship due to loss. Depending on the value of the boat and any special circumstances, insurance coverage for boats is often a very good idea. Here are some of the ways boat insurance can be important.
What It Covers
Boat insurance is usually purchased to cover boats with motors but can be obtained for boats without motors such as canoes and kayaks as well. Like other forms of insurance, boat insurance plans come with many different levels of coverage such as liability, medical, comprehensive and collision. Boat owners are advised to look at their situation and possibly consult an insurance agent before deciding on the amount of coverage that might be right for them. Owners should take the time to thoroughly read and understand their insurance policies so they know exactly in what ways their property is covered.
Why It’s Important
A boat can be a significant investment and, as with a car, that investment can easily be protected with the right insurance coverage. According to Bankrate, homeowners insurance does not cover boats in most cases. This makes it important to purchase insurance coverage tailored to the specific needs of boaters to prevent against catastrophic loss. Boat insurance can guard against financial loss if anything happens to the boat such as a collision or damage from natural causes. Boat insurance is also important because, depending on the policy, it can cover medical bills if someone is injured while boating. This is especially important if a guest is injured while on a boat and the owner is legally liable for their personal injury. Some policies cover damage due to erosion or a failed part.
It Might Be Legally Required
While state governments often don’t require individuals to carry boat insurance, some do. For example, the states of Utah and Arkansas require boat insurance in many cases. Another example would be if a boat also serves as a house. In that case, the owner may be required to carry some level of homeowners insurance on the boat. In order to use a boat in some state parks, proof of insurance may also be required. Boats that are in use for commercial purposes need to be insured to protect the company against liability and insurance may be required to license an individual boat for commercial use under state law. Commercial boat insurance policies do differ from policies for personal use, so do be aware of the purposes for which a boat will be used.
Why It Might Be Necessary
While it is not always legally necessary to carry boat insurance, it may be required in other circumstances. Many individual marinas and boating events, for example, require owners to provide proof of boat insurance in order to dock or participate. Banks, if the boat is or will be purchased on a loan, will also usually require proof that the owner purchased boat insurance. Most boat owners will find insurance necessary, however, because they don’t want to find themselves with a severely damaged, stolen or destroyed boat and no reparations.
Related Resource: 10 Best Cheap Boat and Marine Insurance Companies
Much of the time, boats are significant investments and therefore having proper insurance coverage is essential. In some cases, having certain levels of coverage may be required or even legally mandated. Factoring in all of this, boat insurance is undoubtedly important to carry under many circumstances.