What Does Boat Insurance Cover?

What Does Boat Insurance Cover?

Jul 21, 2022

Summer is in full swing and millions of boats are taking to the water. There’s nothing quite like being out on a lake, river, or ocean surrounded by close friends and family. Unfortunately, accidents can happen without warning either on or off the water. That’s why it’s important to have a boat insurance policy that suits your exact needs. Let’s take a closer look at what boat insurance does cover, what it doesn’t, and how to buy the perfect policy.


Boat Insurance

One of the oldest forms of insurance is still making waves to this day. Boat insurance provides a wide range of protections for many types of watercrafts including powerboats, sailboats, and fishing boats. Coverage is required in some states like Utah and Arkansas and often when docking at a shared marina, as well.

There are many kinds of boat insurance policies on the market today. They tend to be highly customizable depending on the policyholder’s unique needs. However, it’s important to understand exactly what boat insurance does cover before making a calculated decision.

Boat insurance typically offers coverage similar to that of an automobile insurance policy. For example, it often includes some form of personal liability coverage. This provides protection if your boat causes injury or damage, whether directly or indirectly, to individuals or other boats, docks, or structures. Uninsured or underinsured watercraft coverage is also common to safeguard against injuries and expenses resulting from collisions with another underinsured boat.

Many boat insurance policies feature some form of collision insurance. This generally covers physical damage to the boat’s hull and other critical components like motors, fuel tanks, batteries, anchors, machinery, fittings, furnishings, and fire extinguishers. However, this kind of coverage rarely applies to general wear and tear including mold, overuse, weathering, deterioration, corrosion, damage from insects, animals, and marine life, as well as faulty designs and manufacturer defects.

Insurance providers generally offer various optional boat insurance add-ons. These add-ons may include coverage for fishing gear, personal effects, towing on and off the water, ice or freezing damage, and roadside assistance. Fuel spill liability, wreck removal, and trailer coverage are also common additions.

How to Buy Boat Insurance

Boat insurance tends to be very affordable. Pricing ultimately comes down to things like one’s perceived risk, the area of use, and the amounts of coverage. Your insurance provider will walk you through how to buy boat insurance that suits your distinct situation.

Several factors affect the cost of a boat insurance policy. Cost generally depends on coverage limits, deductibles, the type and size of boat, and how often the boat will be used. For instance, policies with higher deductibles tend to cost less per year than the same coverage with lower deductibles. Other factors that influence a policy’s price include the owner’s boating experience and claim history. In some cases, insurance providers may consider the policyholder’s past driving record, as well.

There are many ways to reduce the cost of boat insurance because insurance agencies may provide discounts for safe boating. These may include discounts for multiple policies, seasonal coverage, diesel-powered engines, and completing boating safety courses. Some safety installations like fume detectors, anti-theft alarms, and automatic fire extinguishers may also encourage additional rebates.

While the state of Nebraska doesn’t legally require boat insurance, we do highly recommend holding a personalized policy. It will give you greater peace of mind when storing, using, and transporting your vessel throughout the year. If you’re looking for a new or updated boat insurance policy, then we welcome you to reach out for a free quote. We offer customized coverage through over a dozen major carriers, and we’ll gladly sit down and discuss your options together.

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We've had our home, auto and life insurance with Michael Cooper for years. My wife and I really feel like Michael and the team at Omega Insurance Group look out for our best interest and educate us on what we really need.Jeff C. & Jennifer B.Lincoln NE
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