Owning a boat comes with questions such as: And how much is boat insurance? Is it required? Let’s go over the basics, including its cost and requirements.<\/p>\n\n\n\n
Do You Need Boat Insurance?<\/h2>\n\n\n\n
By law, you are probably not required to have boat insurance (also known as watercraft insurance). However, that doesn’t mean it’s not a good idea to have it! Arkansas and Utah are the two states that require you have liability on certain types of boats, like ones used in state parks or powerboats with more than 50 horsepower.<\/p>\n\n\n\n
While your homeowners insurance policy may cover your watercraft, it doesn’t go far\u2014coverage generally caps at 10% of your home’s insured value, or $1,000. And liability coverage usually isn’t included under home insurance. For this reason, it’s often best to separate your boat insurance from your homeowner’s policy\u2014unless your watercraft is small, slow, and not worth a lot.<\/p>\n\n\n\n
Does Boat Insurance Cover Theft?<\/h2>\n\n\n\n
Boats stolen from your dock or marina are covered on a watercraft insurance policy. It’s also covered if someone steals it from a trailer while you’re moving from one place to another. <\/p>\n\n\n\n
What Does Boat Insurance Cover?<\/h2>\n\n\n\n
A policy usually covers:<\/p>\n\n\n\n
Damage from fire <\/li>
Bodily injury liability<\/li>
Collision damage<\/li>
Damage to a boat and permanently-attached equipment<\/li>
Property damage liability<\/li>
Guest passenger liability<\/li>
Damage from lightning<\/li>
Fuel spill liability<\/li><\/ul>\n\n\n\n
Additionally, most policies will cover permanently-attached equipment, anchors, oars, seat cushions, life jackets, etc.<\/p>\n\n\n\n
What Watercraft Insurance Doesn’t Cover<\/h2>\n\n\n\n
Defective or damaged machinery<\/li>
Normal wear and tear<\/li>
Damage from sharks and other creatures<\/li>
Damage from mold and insects<\/li><\/ul>\n\n\n\n
Is Boat Insurance Expensive?<\/h2>\n\n\n\n
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On average, expect to pay around 1.5% of the value of your boat in annual rates. This means that if your boat is worth about $100,000, you can expect to pay about $1,500 to insure it. Of course, if you have a mega yacht, it will be more expensive to insure!<\/p>\n\n\n\n
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