Boat and Yacht Insurance

Now that you know why, here’s how.  Choosing your boat and yacht insurance might prove to be challenging but with some persistence and understanding, here is some insight from Protect You Better and Voyager Marine to make the process a little easier.

What does your homeowner’s insurance cover?  Probably not much as far as boat and yacht insurance goes.  The dollar amount is likely minimal while any damage claimed must have occurred when the boat or yacht is at home, not when it’s in use at the lake or fishing at sea.  A homeowner’s policy will generally not cover total loss replacement, fuel spills or personal effects.

What size is your vessel?  A personal watercraft is under 16’; a boat is considered to be between 16-25 feet; a yacht is 26’ and over.  If purchasing yacht insurance, the coverage is initially the same as a boat but the terms used are somewhat different – ‘physical damage’ on a boat is called ‘hull damage’ on a yacht; ‘liability’ coverage for a boat is known as ‘property and indemnity’ (P & I) on a yacht.

What coverage does the policy offer?  Most policies for boat and yacht insurance generally cover physical damage to the vessel on an ‘all-risk’ base which includes fire damage, lightening, theft, wind, and vandalism.  When shopping around for a policy, requested coverage should include that for yourself, passengers, vessel, and liability coverage for possible injuries or damages to other vessels or people.

Boat and yacht insurance is similar to automobile insurance in that most standard policies offer minimal liability coverage with additional coverage in increments of $100,000 up to $50 million; underinsured or uninsured boater coverage can also be purchased.

Supplementary coverage can be purchased for the boat trailer, fishing equipment, and water-skiing.  Be sure to inquire if the personal property coverage includes computers, cell phones, or any other personal electronics that may be onboard; also, is there coverage for on-water towing, fuel spillage, or wreck removal?

How is the cost of your policy determined?  It’s based on the boat’s age, value, horsepower, speed, location of use, and the experience of the vessel operator.  Discounts can often be obtained for operators with approved boating safety courses, for newer vessels, and for having onboard devices installed like a burglar alarm, depth finder, ship-to-shore radio, or even by taking a higher deductible rate.

The National Society of Agents for Consumer Education (NSACE) recommends shopping around for your boat or yacht insurance and looking for an experienced boat and yacht insurance agent who specializes in this area.  A good insurance agent is your best asset to help design the ideal coverage for your boat and yacht insurance needs.

Now that you have your boat insurance – time to hit the open waters!  Use our FREE fuel shopping system to find your preferred marine fuel at the best price.

Sources:
Protect You Better (National Society of Agents for Consumer Education)
Voyager Marine
Boat U.S. (Boat Owners Association of the United States)