Boat Insurance Basics
Why Boat Insurance?
A boat is an investment that can give you years of pleasure and create lifelong memories for your family. This post will help you make sure that your boat is protected by the appropriate boat insurance policy.
The Basics
A small boat, such as a canoe or other un-motorized boat, is typically covered under the personal property portion of your homeowners insurance policy. If you own a larger, faster boat, you’ll need a separate boatowners insurance policy. A typical boatowners insurance policy is designed to protect your boat, motor, equipment and passengers. It affords similar coverages to those you typically have for your car including:
- Physical Damage: Physical damage coverage insures your boat, motor, boat trailer, boat equipment (anchors, oars, fuel tanks, life jackets, dinghies, tools, etc.) and other personal property against theft, accidental loss or damages.
Liability: Two principal liability coverages are included:
- Personal Liability – A boatowners insurance policy provides protection for legal liability and pays, up to the limit of your policy, the legal obligations imposed upon you due to an accident resulting from the ownership, maintenance, or use of your watercraft, including bodily injury, property damage and legal defense.
- Medical Payments– This pays medical expenses, up to the limits in the policy, including the insured’s boating-related medical expenses from an accident arising out of the ownership, maintenance or use of the boat.
Additional Coverage Options
For added protection, consider the following additional coverage options:
- Reasonable Repairs: Covers repairs incurred to protect covered property from further damage.
- Emergency Service: Pays for reasonable costs that you incur resulting from specified emergency service to your boat, motor or boat trailer.
- Wreck Removal: Pays the reasonable expenses you incur for any attempted or actual raising, removal or destruction of the wreck of your watercraft when damage is caused by an insured loss and removal or destruction is required by law.
- Umbrella Liability: Provides additional boat insurance coverage across the board for home, auto and watercraft.
Cost
The cost of boat insurance varies depending on several factors, such as:
- The state you live in
- The type, size, and age of the boat you wish to insure
- The size of motor and how it is powered
- Whether you are using it on inland waters or the open seas
- Whether you have selected additional coverage options
In general, boat insurance can range anywhere from as little as $75 to as much as $500 per year.
Top Ways to Save
- Running your boat on diesel fuel instead of gas reduces both your risk and insurance premium
- Complete an approved safety course through the Coast Guard, U.S. Power Squadrons, Red Cross or other state administered course. To learn more about Iowa boating safety courses, go to the Official Iowa Boating Safety Course website. You can take the course and the exam online; certification is $29.50 plus a state fee of $5.
- Ask about your insurance agency’s multi-policy discount
Disclaimer: This brochure is provided for informational purposes only. The information provided herein is not intended to be exhaustive, nor should it be construed as advice regarding coverage. Eligibility for coverage is not guaranteed and all coverages are limited to the terms and conditions contained in the applicable policy.