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Boat insurance basicsDo I need insurance for my boat?
Compiled by FirstBoat.com Staff writers
You probably bought your boat for fun, and when you think of FUN, the last word that comes to your mind may be INSURANCE. But of all the money you spent, and will continue to spend, on your boat, boat insurance may be the smartest dollars you spend. Besides, some marinas won't let you dock your boat unless you've got insurance.
Homeowners' insurance policies usually include coverage for watercraft, but the coverage is often very limited. Typically, a home insurance policy will pay up to $1,000 if something happens to your boat while it's at your house. The policy may even offer some liability coverage for you while you use your boat, but it's less than ideal.
The insurance industry generally places watercraft into three categories:
- Boats: Generally between 16 feet and 25 feet, 11 inches in length
- Yachts: Generally 26 feet or greater in length
- Personal watercraft: Jet skis, wave runners and other similar vessels
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All three types of vessels (boats, yachts, pwc) require different types of insurance coverage. As with many other types of insurance, policies vary quite a bit from company to company. If you're in the market for boat, yacht or personal watercraft insurance, comparing different companies' policies can be tricky. Read each policy carefully.
Boat insurance
Most of the vessels that fall under the definition of "boat" are smaller powerboats and sailboats. Boat insurance typically covers physical damage and liability.
The physical damage coverage pays to repair or replace your boat if it's damaged or destroyed by fire, theft, lightning, vandalism or windstorm. (Unlike home insurance in many coastal areas, boat and yacht insurance cover damage from hurricanes and tornadoes.) Covered items include the boat itself, outboard motors, the boat's trailer and personal property kept aboard the boat. However, your personal effects -- things that aren't part of the normal operation of your boat -- are not covered. Some companies offer separate coverage (at an added cost) for fishing equipment, cell phones and computers that you use aboard the boat. (story continues after offers)
Liability coverage protects you if you're found responsible for damage to property or injury to someone other than you or a family member. So if you hit another boat or a guest is hurt aboard your boat, you'd be covered. When it comes to boat insurance, liability coverage is often offered in $100,000 increments, up to $1 million. In our lawsuit-happy world, it pays to have this coverage.
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