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Boaters often underestimate the costs associated with boat ownership. In addition to the cost of the actual vessel, ongoing expenses like dock fees, general maintenance, fuel costs and winter storage all add pressure to control costs wherever possible. Watercraft Insurance is an essential part of boat ownership that should never be trimmed.
Many boat owners mistakenly believe their watercraft and trailer are automatically insured under either their personal auto or homeowners policies. Although auto policies can provide liability coverage for the trailer while it is being towed by your vehicle, they do not automatically provide physical damage coverage for the trailer nor do they cover liability or physical damage coverage for the watercraft. Homeowners policies provide automatic coverage for small sailboats or some smaller power boats, but coverage is limited to just liability; physical damage coverage is not automatically provided.
Owners of boats over 26 feet or any boat with engines over 25 horse power should purchase a separate Watercraft Insurance policy to secure the protection they need. Watercraft Insurance policies provide insurance coverage that is specifically designed for the unique loss exposures associated with boat ownership including:
- Physical damage and theft coverage for the vessel, motors and fittings, personal property on board, fishing equipment, navigation equipment and more.
- Watercraft liability coverage
- Uninsured/underinsured boaters coverage
- Pollution coverage
- Emergency towing
- Medical benefits to the boat owner and passengers
The cost of your watercraft policy will depend on the size and type of boat, its value, areas of navigation, claims experience and boating experience. Most insurers providing Watercraft Insurance offer premium discounts for safety equipment kept on the boat and for boater’s safety certifications. Purchasing Watercraft Insurance from the same insurer that provides your Homeowners and Auto Insurance policies may open the door to additional discounts.
Finally, to ensure adequate liability protection, it is important to also list your watercraft for coverage under your Personal Excess (Umbrella) Liability policy.
Your agent at The Safegard Group is always available to discuss Watercraft Insurance with you and to investigate premium quote options for the coverage.