Boat Insurance

Why Purchase Boat Insurance?

Huge numbers of Americans enjoy recreational boating but this recreational does come with inherent risks. Having good boat insurance coverage prior to cruising is crucial for various financial and legal reasons, however it is important to keep in mind the rather unique aspects to this type of policy. At the very least, vessel owners should obtain insurance protection for bodily injury and property damage, including those injuries sustained while using the boat and injuries or deaths that occur to other people who are either on other boats or even on shore where accidents can also happen, on the dock for example.

There are events and perils over which you have no control, such as severe weather, accidents with other boats, theft, vandalism and so on. All these perils can result in damage or downright destruction of your boat, but with boat insurance to protect your property, you can mitigate the financial consequences of loss. It is a no-brainer that a boat owner would desire to keep such a large investment in good shape throughout his or her ownership of it. But accidents happen and so do acts over which one has no control, like destructive weather, impacts with other boats, theft and more. All of these various issues can either damage or even total your boat. However, carrying good boat insurance can significantly mitigate the financial challenges after a loss.

Boat insurance is a special type of coverage that is designed specifically for boats of many kinds and sizes. It is common for a boat owner to be required to purchase a minimum amount of liability coverage. Liability is what compensates for any damages that the boat owner is at fault for causing while operating his or her boat. Keep in mind that it will not pay for any of the policyholder’s own financial losses. There is other coverage available that adds additional protection for both the boat and the individual who owns it. Examples include protection for property on board, like diving equipment, skis, life jackets, and more. Often times boats will have on board personal belongings worth thousands of dollars that may be financially safeguarded from theft, being misplace or from damage. Obtaining a policy that also provides personal injury coverage can be very helpful in that it can pay out for medical and other related expenses should the owner or a passenger be injured on the boat.

When purchasing a boat insurance policy, it is wise to obtain a plan that is as financially protective as you can afford. This type of insurance obligates one to make regular premium payments as well as paying an out-of-pocket deductible when a claim is successfully filed for compensation. (Keep in mind that the larger the Deductible, the less expensive the premiums will be.) However, should you opt for a bigger deductible, be prepared to pay a larger deductible by, for example, putting aside money in a savings account. No owner can ever foretell when their prized vessel will fall victim to some destructive event, it is therefore smart to not put off buying good boat insurance. The peace of mind in knowing that you are financially safeguarded from the consequences of loss is priceless for many.