Boating is an extremely popular pastime here in the United States, with more than 75 million people spending their time out on the open water each year. And just like with homes and cars, boats require insurance. There are a wide variety of companies that provide boating insurance, including some of the big names like Allstate and Travelers. Here are the five things you need to know about boat insurance:
- Why you need it – Boat insurance can be expensive, leading many people to question whether or not they even need it. Some might even assume that their home owner’s insurance covers their boats. Your boat is completely separate from your home and from your vehicle, even if it is occasionally towed by your vehicle or housed in your garage. That means it needs its own policy.
- How it is different from home or car insurance – Boat insurance is actually halfway in between home or auto insurance. It covers liability like home insurance does, but it covers bodily harm like your car insurance does.
- Why the agreed value and market value differ – There will likely be two different valuations when it comes to deciding on the value of your boat. One will be the market value and one will be the agreed value. Both of these are important to the insuring of your boat, but the agreed value is a number that the insurer and holder agree upon, while the market value is a number that depreciates, over time.
- What covers your boat when it is not on the water – Your boat insurance will generally only cover your boat when it is actually on the water. When it is being towed by your vehicle, it is covered by your auto insurance policy. When it is stored on your property, it may be covered by your home owner’s policy. There will generally be limits on what these policies will pay for a boat that is damaged.
- Where in the water your boat is covered – Some policies may actually restrict where you are allowed to take your boat. These territories will be laid out by your insurer. This means that if you try to sail your boat around the world, you might not be covered for the entire voyage (or even most of the voyage).
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