Boat Insurance: Protecting Your Investment on the Water

Sun’s out, fun’s in. It’s summer in the CLE and time to get out and enjoy the warm weather! If you have a boat, we know you’re going to be using it. Sort of a crime if you didn’t. The team at BK Insurance & Financial just wants to be sure that you’re safe and protected while out on the water. Let’s get into the basics of boat insurance and liability coverage and what you need to know before you set sail.

What Is Boat Insurance?

Let’s start by defining some terms. Boat insurance, like car insurance or home insurance, is a form of property insurance. It’s there to protect what you own in case of damage, and that doesn’t only apply to a boat. Boat insurance can also cover other various types of watercraft. These could include:

• Boats
• Personal Watercraft (i.e. jet skis, Sea-doos, wave runners)
• Yachts (may require additional coverage due to size and risk)
• Sailboats
• Pontoon boats
• Dinghys
• Fishing boats
• Kayaks
• Canoes

Boat insurance can also provide coverage for boat clubs, boat rentals and personal watercraft rentals. If your type of boat is not listed above, it’s more likely than not that insurance is still a good idea, or even a requirement. Contact us to discuss.

What Does Boat Insurance Cover?

A lot can happen on the water, and in the dock. Violent storms can bring wind and hail, or things could go wrong and your boat gets damaged, someone gets injured, or your boat damages someone else’s property. No one ever means for these things to happen, but it’s good to be prepared for worst-case scenarios.

This is when boat insurance jumps in to save the day, with coverage to pay for replacement parts, such as anchors, oars, trolling motors, tools, seat cushions, and life jackets. What else is included in your boat insurance policy? Here’s a general rundown of what may be included in your coverage:

• General liability coverage
• Damage to your boat, its hull, equipment, motor, and furnishings
• New boat replacement
• Wreck removal coverage
• Damage to another’s boat/property
• Personal property onboard
• Theft and/or vandalism
• Weather-related incidents
• Onboard fishing equipment
• Medical payments for injured passengers or other third parties
• Fuel spill liability
• Uninsured boater protection
• Guest passenger liability
• Trailer or boat accessories
• Towing and/or salvage in the event of an accident or breakdown

That’s a long list of what might go wrong. We hope these things never happen to you, but it’s best to know that if they do, you’ll have someone backing you up. Get in touch with your BK Insurance & Financial Services agent to ensure that you have the boat insurance coverage you need. No two boats or boat owners are the same–your policy should be as unique as you.

Types Of Boat Insurance

Much like available car insurance in Kent, boat insurance policy types vary in the scope of their coverage. 

Liability insurance is the basic, bare-bones coverage you need to be legal on the water. Liability coverage will kick in if you damage another boat or dock, or if you accidentally injure someone. It will help to pay for repairs to third party property and will cover medical bills and legal fees if you are taken to court.

Collision insurance extends the same coverage that liability gives to others to your own boat and equipment. It protects you against damage to your boat from collision, sinking, or another covered loss. 

Comprehensive insurance takes protection yet another step farther. This level of coverage kicks in if your boat is stolen or vandalized or damaged by fire, wind, hail, and more.

Additional riders can often be added to extend coverage to expensive gear, equipment, and personal effects that may be on board. And for the best, most protective coverage, it’s a good idea to keep detailed records along with any receipts and appraisals of new equipment, as well as informing your agent of the additions to ensure adequate policy limits.

Why Do You Need Boat Insurance?

It’s important to have boat insurance if you have any type of watercraft, because coverage limitations in your homeowner’s policy may not offer enough protection, if they offer any at all. Boat repair, replacement, and other boat-related incidents can generate steep bills. Without adequate boat insurance, and in the event of damage, theft or injury, you could be left high and dry. 

Having boat insurance can also push you to inventory and collect appraisals for all of your boat-related property, which is good to do anyway. You may also be required to provide a hurricane plan, which could affect rates. But won’t you be glad to have it in tow should the worst case become a reality? Having boat insurance and discussing your needs and concerns with a trusted agent can result in a ripple effect of protection.

How Much Does Boat Insurance Cost?

As is always the case with questions about insurance cost, the answer depends on countless factors. Some personal data points that will affect your overall premium could include:

• Liability limits
• Deductible
• Boating safety education training/certification
• Good driving history

Other considerations that will affect your total cost could be:

• Age of boat
• Boat length
• Value of boat
• Speed/horsepower capability
• Condition of the boat
• Type of boat
• Area of operation

In general, the size and value of the boat will have an outsized impact on the cost to insure it. A smaller, less expensive model may only cost as little as $200 to $500 per year, whereas it could cost several thousands of dollars per year for yacht insurance . A good rule of thumb is to expect to pay about 1% to 5% of the boat’s value per year on insurance. Once you have that sum, divide by 12 and you’ll have a rough estimate of your monthly premium cost. 

Sometimes you can opt for specific payment methods or schedules to save on your insurance cost. Bundling different types of policies, taking boating safety courses, and maintaining a good driving history are other common ways to save on your premium. And if you’re in an area where boat usage is seasonal, layup periods during winter or hurricane season could offer temporarily reduced rates, seeing as it is not in use. Limiting your navigational area could offer another potential way to save, as does installing common safety devices like a fire extinguishing system, anti-theft alarm, tracking device and a fume/vapor detector. Anything you can do to protect your property will lower risk and may also lower rates.

For Boat Insurance in Kent, Rely on BK Insurance & Financial Services

There is a lot to know about boat insurance–this is really just the beginning. Every boat and boater’s needs and specific risks will vary, and so should their coverage options! If you still have lingering questions and need solid answers so that you can make the best decision when it comes time to protect your investment, reach out to one of our agents and discuss your concerns. We’d be happy to advise you and set you up with the ideal boat insurance policy that directly addresses all your needs. Whether you’re in the market for boat insurance or home or car insurance in Kent, contact the team at BK Insurance & Financial Services today!