A good seaman knows to expect the unexpected. With that in mind, boat insurance may be the safety net that can save you from thousands of dollars of damage. If you take your boat out without insurance you run the risk of potential lawsuits and any number of devastating scenarios. However, with insurance, you can sail on stress-free. Read on and find out more about boat insurance and why you need to be insured:
What is Boat or Personal Watercraft Insurance?
You may be familiar with home or auto insurance, but boat and personal watercraft insurance comes with its own set of rules. In most states, the size, type, and value of your boat, personal watercraft, or jet ski determine your insurance needs. Actually, your boat may also be covered by your homeowner’s policy. When you research or select an independent insurance company, you will be able to find out about your all coverage options. Typically, companies offer different forms of coverage including:
1. Physical Damage
This coverage protects your boat while it’s in storage or transport. Additionally, your boat or watercraft is covered when it’s out of the water. You would be protected from situations like fire, lightning, vandalism, theft, and more.
2. Liability
Liability coverage protects you in the event of a collision with another boat, dock, or other boaters.
3. Personal liability
Personal liability extends to protecting you or a family member if you have an accident causing another person’s injury.
4. Medical payments
Selecting this coverage pays for the medical expenses if you or someone on your boat suffer an accident.
5. Property Damage
This covers damage caused to another person’s property while operating your boat or watercraft.
Your Bank or Marina May Require Watercraft Insurance
Many boat owners take out a loan from their bank when purchasing a boat or watercraft. However, in order to get the loan, your bank will require proof of insurance that covers the full value of the boat in the event of a loss. The bank becomes the lien holder on the policy, which automatically makes them a co-payee on any loss payments. Additionally, most marinas require proof of liability insurance before finalizing contracts for a slip or a mooring.
Mother Nature is Unpredictable
Even when your boat is in storage it is still vulnerable to damage. Possible damage includes natural disasters like flooding or hurricanes (depending on where you live) and fire. If you insure your boat, you save thousands of dollars.
Homeowners Insurance Limitations
As we mentioned, your homeowner’s insurance policy sometimes includes your boat and watercraft. However, that policy only covers damage to your boat when it is on your property. Additionally, any coverage it includes will be significantly less than what you get with boat insurance.
Get Coverage You Feel Good About with American Tri-Star Insurance
Finding the best homeowner’s insurance may seem like a daunting task. However, it doesn’t have to be. American Tri-Star Insurance is an independent insurance company offering tailor custom insurance that fits your needs. Whether it be auto, home, or boat insurance in California, our packages are second-to-none when it comes to effective coverage. Request a quote today and get started!
