Types of Boat Insurance

When you begin search for boat insurance, it can be overwhelming when you see the different types you have to choose from. Most insurance companies that don’t specialize in boat insurance will only offer one liability coverage policy. Companies that specialize in boat insurance will generally have more options available for you to choose from. If you have financed your boat, your lender will likely have specific coverage that you must purchase.

Law in most states requires a standard boat insurance policy, the watercraft liability coverage. This policy covers you in the event that an injury or damage to property results from actions taken with your boat. This includes both during transport and in the water. Since it is a law requirement, all boat insurance companies offer it. Each state has their own requirement for how much coverage you need, so ask the insurance agents for clarification.

Some states require medical coverage as well, so it is wise to know if this is necessary in your area. This boat insurance coverage pays for medical expenses of you and any passenger on your boat that are caused by an accident covered in the policy. There is usually a cap on the amount of expenses that will be covered. Whether this is required or not, it’s a good idea to at least consider it. Medical expenses are always expensive and this can help in the event of an accident.

An additional boat insurance option is wreck removal and pollution coverage. This should also be seriously considered, although it is optional unless required by a lending institution. If an accident should happen and your boat sinks, you are required by law to remove it immediately. If oil or gas leaks into the water you can and will be fine. Wreck removal and pollution coverage provides reimbursement for this kind of accident. Without this type of boat insurance you will have to pay for the removal and cleanup fines on your own.

Boat insurance companies are much like car insurance compnaies in that they provide coverage against uninsured vessels. This works in much the same way as it does with uninsured motorist insurance for your car. If another boat, which is under insured or not insured at all, causes an accident with your boat you will not be responsible for the cost. This coverage pays for the replacement of your boat and any necessary repairs.

Most boat insurance policies that you can purchase should cover the boat, the motor, and the transport trailer. In most cases you will likely need more than liability coverage only. There are many things that can happen to your boat; theft, vandalism, storms, fire, capsizing, collision, and sinking to name a few. Your boat is a precious possession, protecting it against these things will probably be in your best interest. Speak to your boat insurance agents to determine what it the best coverage for you.