If you own a car or house, you likely have insurance on these items. This insurance protects you financially should your valuable property become damaged; in the case of car insurance, it also protects you if an accident occurs and damages someone else’s property.
Boat insurance works in the same way. By providing financial protection, it can be one of the most important purchases you make after buying a boat. So, should you buy boat insurance? Do you need boat insurance? For that matter, what does boat insurance even cover?
The answer, as you may have guessed, depends on many factors.
What is Boat Insurance?
Boat insurance provides financial protection for injuries or damage caused by your boat that occur while you are boating. It can be purchased if you own a variety of watercraft, including powerboats, fishing boats, luxury offshore vessels, personal water crafts, sailboats, and more. It works similar to car insurance; if you have damage or if your boat damages someone else’s property, you can make a claim to receive payment for those costs.
Boat insurance will almost always cover liability. This means that if you are liable (at fault) for damage to another person’s property, the boat insurance will cover the costs. It also includes physical damage to the boat itself, compensating you for repairs to the hull, motor, cabin, deck, and other areas. There may also be a section that covers uninsured boaters, which means you can get compensation if you have damage or injuries caused by an uninsured boater.
It won’t, however, cover regular wear and use. Mild damage from docks, scrapes to the hull, sun damage to upholstery, and insect damage will not be covered by the policy.
Is Boat Insurance Required?
In most cases, no, boat insurance is not required. Most states do not require boat insurance in any way, and the ones that do only require it for boats that will be in certain areas. Hawaii, for example, only requires boat insurance for boats parked in Department of Land and Natural Resources Division of Boating and Ocean Recreation (DOBOR) facilities.
But just because it’s not required doesn’t mean you shouldn’t have it.
Should You Have it?
Whether or not you have boat insurance depends on many factors, but most important is the value of the boat and the potential damage it could do to other people’s property. So, do you need boat insurance? Well, if you have a small boat that you purchased for a few thousand dollars, and that boat is destroyed in an accident (and we’ll just assume everyone is okay), you can likely afford the replacement costs. However, if your boat is worth hundreds of thousands, you’ll likely want comprehensive coverage.
Boat insurance is usually affordable and easy to attain, and there is likely an option to bundle coverage with your home or vehicle insurance.
Excellent Boats for All Your Boating Requirements
If you are looking for an outstanding boat for your next outdoor experience, contact Scout Boats today. With a full selection of luxury fishing boats, we can help you find the right craft for your specific needs!