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Why Do I Need Boat Insurance?

Why Do I Need Boat Insurance?Just because something like boat insurance isn’t required by law doesn’t mean you don’t (or won’t) need it.

There are only a few states that require you to carry boat insurance in the U.S. on certain types of boats. Even if you live in a state that does not require you to carry boat insurance, if you used a lender to acquire your boat, they’ll likely require you to purchase a policy to protect their investment because it’s not actually “yours” until you pay it off. Here are three things you should know about boat insurance before you go out and purchase any old policy without giving it a second thought.

  1. How does it differ from auto or home insurance?

In some ways, boat insurance is a weird blend of auto and home insurance. Like home insurance, a boat insurance policy covers you for liability if someone is injured on your craft and gives you the choice between replacement cost or cash value in a total loss.

It’s also like auto insurance because it covers bodily injury and damage done to the other vessels.

  1. Is my boat covered out of the water?

Strangely, yes! Though not by your boat insurance. While it’s attached to your car, it’s covered by your auto insurance policy, and while it’s in storage on your property, it’s covered by your homeowners policy (up to your policy limits).

  1. Is it covered on all waters?

If you’re planning to sail the world, you may want to check your boat insurance policy and its geographical/nautical limitations. Most policies are limited to the inland and coastal waters of the U.S. and Canada.

Repairing boat parts can be quite expensive, so having the appropriate boat insurance policy really pays off! For full coverage on your boat insurance and peace of mind for when you hit the waters, contact Scautub Agency in Scotia, New York.

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