Check Your Home Insurance Before Buying a Boat
If you vacation near an ocean, a lake or a river, chances are you probably own a boat or you are considering buying one. But before you head out on the water, find out if you are covered under either your home insurance or renters insurance policy. If you want to have more coverage, get home insurance quotes to find the best policy for your family’s needs. If you’re not covered, you will need to buy a separate boat insurance policy. Here’s what you need to know to properly insure your boat:
Small boats
Most homeowner and renter policies provide limited coverage for property damage for canoes, small sailboats or powerboats equipped with an engine with less than 25 horsepower, according to the Insurance Information Institute. Home insurance typically covers about $1,000, or 10 percent of the home’s property value, and generally includes the boat, motor and trailer. If you would like liability coverage, you can buy a rider to your homeowner’s policy. Check with your insurance company to find out whether your policy covers your boat and if it places any limits on your coverage. If you want to buy a new policy, get home insurance quotes to compare coverage and costs. You don’t want to have any unpleasant surprises on vacation.
Large boats
If you own a large boat, a speedboat, a yacht or a personal watercraft, such as a Jet Ski or WaveRunner, you will need to buy a separate boat insurance policy. Boat insurance is required for vessels 26 feet or longer or ones that have more than 50 horsepower. The premium will be based on size, type, value, use of the craft and your experience operating a boat. Obtain free online insurance quotes to compare policies.
Boat insurance includes bodily injury, property damage (caused to someone else’s property), guest passenger liability, medical payments and theft. Typical policies include deductibles of $250 for property damage, $500 for theft and $1,000 for medical payments, according to the Insurance Information Institute. Most companies offer liability limits starting at $15,000, which can be increased to $300,000. The typical deductible is 1 percent of the insured value.
Boat insurance policies provide broader liability protection than homeowners policies, according to the Insurance Information Institute. An actual cash value policy will pay for replacement costs less depreciation at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the vessel’s approximate market value. Partial losses are settled by taking the total cost of the repair less a percentage for depreciation.
An agreed amount value policy means you and your insurer have agreed on the value of your vessel and in the event of a total loss you will be paid that amount. Agreed amount value policies also replace old items for new ones in the event of a partial loss, without any deduction for depreciation.
Bodies of water
The boat type, the horsepower, the vessel’s value, and the boat’s location are all taken into consideration when an insurance company determines your coverage and premium. For instance, sailing around the Caribbean is generally viewed as riskier than sailing on a quiet lake, so your premiums will be higher. Talk to your insurance agent or insurer to determine the amount of coverage you will need. You can also consider buying an umbrella liability policy, which will provide additional protection for your boat, home and car.
Once you have determined the best coverage for your family’s needs, you’re ready to obtain home insurance quotes or boat insurance quotes. Call agents in your local area, contact several insurance companies directly or use InsuranceQuotes.com to instantly get competitive insurance quotes from the nation’s leading insurance providers. Take the time to protect you and your family today.
