Learn 10 Tips for Buying Boat Insurance

Coverage for Uninsured Boaters

This boat-insurance policy is likely to sound familiar to boaters with automobile insurance because it is comparable to the uninsured motorist coverage some car drivers acquire. For the uninitiated, this provides supplementary coverage for bodily injuries aboard your boat caused by a collision with a hit-and-run boater, in which the other boater either flees without being apprehended or is operating without insurance, as the name implies. It is important to note that many boats and boaters are uninsured because boat insurance is not required in most regions.

 

Medical Payments Insurance

Out-of-pocket expenses not covered by the injured person’s health insurance, such as copayments and deductibles, are covered by medical payments coverage. It gives a per-person coverage limit for any injury sustained on the covered boat, regardless of fault. Many insurers limit the payout of this coverage to $1,000, although some offer larger limits in exchange for a higher -premium. Boaters who participate in watersports such as waterskiing or wakeboarding, offshore fishing, or other boating activities where injuries are more likely to occur should pay special attention to medical payments coverage.

Hurricane Haul-Out Protection

Okay, this is a well-known requirement for boaters in hurricane countries who keep their boats in the water, but we’re adding it in the post for individuals moving to the coast from inland areas or novice boaters. In a word, this coverage reimburses a percentage of the costs associated with having the boat hauled, readied, secured, or tied down by experts, or moved by a certified captain. For example, the BoatUS Marine Insurance Program will pay up to $1,000 in labor costs to have your boat hauled or moved, or if you are out of town, have a professional prepare your boat, and the haul-out will not penalize the policyholder. Before obtaining this coverage, we recommend getting an estimate from a boat hauler for the cost of a storm haul-out, as indicated above. Then, you’ll be in a better position to decide whether you want it that way.

Coverage for Boat Trailers

If you were in an accident while trailering your boat, your boat policy might pay for any loss-related trailer repairs (check—it is sometimes separate coverage and not included). Still, any damage caused by the trailer to other people or property would be covered by your tow-vehicle insurance. Trailer boaters, of course, are the ideal candidates for this coverage. Also, find out whether there are any geographical limitations to the coverage.

Waiver of Partial Loss Depreciation

If you own an older boat, say, 15 or 20 years old, you’ll want to learn about this coverage and decide whether it’s right for you. After two years, many insurers depreciate big things like canvas, engines, generators, or sails rapidly. As a result, the “new for old” financial-advantage benefit of some insurance coverage is lost as your boat ages. If you include a partial loss depreciation waiver, you effectively stop the clock and continue to pay “new for old” claim rates on these items.

 

Dinghy/Marine Electronics Endorsement Insurance coverage for high-value vessels may have hefty deductibles. 

If the boater has separate coverage for the dinghy and electronics, the decision to file a claim for a stolen dinghy or marine electronics may be easy. Some may believe that this is only for large boats, however as a result of testing so many new boats, many yachts as little as 23 or 25 feet are often outfitted with $15,000 in electronics. If you cruise extensively or boat in a high-crime region, you should consider purchasing a dinghy or marine electronics endorsement.