We get it. Boat insurance can be confusing. We're here to help clear things up.
Boat insurance financially protects you from injuries or damages caused to you or others while boating.
Most states don't require boat owners to purchase boat insurance. If the boat is financed, the lender might require the owner to carry coverage. Additionally, if the boat is kept in a marina or storage facility, the facility might require insurance on the watercraft.
Boats in storage may not be covered by homeowners insurance. However, if your homeowner's policy does cover your boat in storage, the Insurance Information Institute says that likely only boats such as canoes, small boats, and small sailboats will be covered. It goes on to say that the coverage would be minimal.
Boat insurance will cover damage to the hull, furnishing, motor, sails, trailer and much more. If you cause an accident, your boat insurance will cover the damage you caused, injuries/death of another person, and damage to another's boat.
It is a good idea to have insurance during the off-season, hazards such as fire and theft may happen at any time. If you do not have boat insurance, you may have to pay to repair or replace your boat if stolen or damaged.
Unfortunately boats are not covered under home insurance policies. A boat needs a separate insurance policy given its value and risk exposures.
Boat insurance is the promise to pay in the event of a covered loss. If you damage your boat or cause injuries or damages to another person, insurance is there to pay for the losses as long as they are covered in the policy.
It is not a bad idea to keep your boat insured. Theft, damage, and various other types of hazards will be covered by your boat insurance while your boat is stored. In addition, when you are ready to put your boat back in the water, you will not have to think about reactivating your policy.
On average you can expect your boat insurance to cost $200-$500 every year. However, if you own a big boat (like yacht or sailboat), the boat insurance can cost between 1-5% of boat's value.
Boat insurance works the same as car insurance. If you cause damage to another boat or your own, you can file a claim with your insurer, requesting they pay for the damages. If the event is covered, all losses or injuries will be paid by your insurer up to coverage limits.
No state requires insurance for your boat trailer. However, if you have an accident with your boat trailer involved, it is possible you could be liable for damages.
A few things to think about: How often do you take people out on your boat? Are there any special features on your boat (you might need extra protection)? Where are you going to use your boat? Before buying boat insurance, it would be smart to talk to an insurance representative.