Boat Insurance for Different Types of Vessels: What You Need to Know
What if you could make one of your best investments safer than ever?
Whether big or small, one of the most significant investments for those who love the water is their boat. Oceans and rivers are like a playground for those with the right gear, but because the playground can get dangerous, it is important to have the right boat insurance.
Many who own beautiful boats do not have the right coverage, and some do not have any protection at all. Worried about your own vessel? Keep reading this boat insurance guide to discover everything you need to know about giving your prized investment the coverage it deserves.
Anchoring the Basics of Boat Insurance
If you are new to the world of boat coverage, there is no need to worry — insuring your watercraft is functionally very similar to insuring your automobile. It is also just as important. If you plan to take your boat on the road with you and the family this year, add protecting your vessel to your summer road trip checklist. The idea is to have protection in place so that if your boat is damaged or even destroyed, you will not have to pay for all the repairs or the entire cost of replacement out of pocket.
The rest of this guide will break down everything you need to know. First, you should know there are really only two types of insurance for sailboats and other major vessels. An Actual Cash Value policy will pay the cost of the vessel minus depreciation, so there will always be some out-of-pocket costs. The alternative is an Agreed Amount Value policy that will pay out the agreed-upon amount in the event of a total loss, no matter how much the vessel has depreciated in value.
Coverage Options for Small Watercraft: Jet Skis, Canoes, and Kayaks
One of the reasons boat insurance is so confusing is that there are so many different types of craft customers need to cover. This includes jet skis, canoes, kayaks, and even yachts. To understand what coverage you need for your own watercraft, it is important to understand which options are available.
If you have a canoe or kayak, these smaller boats may already be covered under your current homeowners or renters insurance policy. Such policies often protect everything up to small sailboats and powerboats as long as they cannot travel more than 25 miles per hour. One important note is that these existing policies usually do not offer liability coverage. If you want that, you will need to either add a rider to the current home policy or buy separate boat coverage.
Now, you may be asking, “What kind of insurance do I need for a yacht or other larger vessel?” In this case, both larger vessels and jet skis can only be protected through separate boat insurance. That coverage may not be required depending on a variety of factors, but it remains the best way to protect yourself and your investment.
Setting Sail With Sailboat Insurance
When choosing the right type of insurance for your sailboat, size matters. Do you have a smaller sailboat? In that case, exactly how you cover it is a matter of preference. As mentioned before, if you have homeowners or renters insurance to safeguard your home while you are away, those policies may extend some protection to your vessel, but that is unlikely to include any liability protection.
If you want that liability protection (always a good idea if you frequently have guests on your sailboat), then you should purchase separate boat insurance. Those really worried about liability with the boat or who want to better protect other assets may wish to consider an umbrella liability policy from a reliable carrier.
Speedboats: Covering Your Need For Speed
If you have the so-called “need for speed,” there is nothing quite like tearing through the water on a speedboat. While it is easy to think you are completely safe out in the open water, accidents are more common than you might think. And with this kind of vessel, the only real way to protect it is by purchasing separate boat insurance.
Even if you have a homeowners or renters policy, speedboats are typically not covered due to how fast they travel. You will need specific boat coverage so you can better protect your vessel and even protect yourself in the event that anybody is injured.
Reeling in the Right Insurance for Fishing Boats
The question “What kind of insurance do I need for a fishing boat?” may sound simple, but the answer is complex. That is because the kind of coverage you need generally depends on the size and cost of the boat in question.
Generally speaking, fishing boats are small enough to be covered by your existing home or renters policy. But if the vessel travels more than 25 miles per hour or you want liability coverage, you are going to need to purchase a separate policy. If the vessel in question is large and expensive, you may also want a separate policy to offer better protection in the event of catastrophe.
Luxury and Liability: Yacht Insurance Explained
This guide has touched on the idea that size matters when it comes to insurance. Specifically, the bigger the boat, the better the coverage should be. Since yachts are the largest kinds of boats outside of the military, they need to be protected with their own separate boat insurance.
Your carrier may have a different definition, but “yacht” is usually used to describe any vessel that is at least 27 feet long. With a craft of this size, there is a lot that can go wrong in an accident, and the yacht can cause just as much damage as it receives. Once you know how to find the best boat insurance in your area, you can protect against any damage you may cause while also making it easier to repair damage to your own vessel.
Charting Your Course Through Boat Insurance
Thanks to this guide, you know why boat insurance is so important and how to protect your vessel. Just as importantly, you know that different kinds of boats need different kinds of protection. In some cases, you may not even need an additional policy. Ultimately, getting the right coverage for your particular vessels can give you peace of mind whether you are out on the water or at home. However, for a customized policy that will provide the right protection for your vessel, you need to know where to find top-tier insurance.
At InsureOne, we specialize in keeping boats and boaters safe and happy. Ready to protect your best investment like never before? In that case, it is time to get a quote online. You can also pick up the phone and give us a call at 800-836-2240. Finally, for a more personal touch, you can always find an InsureOne office near you to get started.