Boats come in many sizes and types and for specific uses. The five common
types are: outboard motor boats, inboard boats, inboard/outboard boats, sail
boats and the row boat. If you have a row boat or canoe, you may not need
any special insurance except for a homeowners policy.
The standard homeowner policy will provide coverage on the boat, outboard
motor, trailer and boat equipment up to $1,000. In addition, the homeowner
liability section will cover acts of negligence for outboard motors up to 25
horsepower or sailboats up to 26' in length.
It is also possible to insure boats that exceed the basic homeowner coverage
by adding an endorsement on an inland marine policy to cover the physical
damage to the boat, motor and trailer. The liability section can also be
endorsed to cover motors with more than 25 horsepower.
Larger boats such as inboard/outboard boats or boats of special use such as
"bass boats" may be better protected with a boat owner's policy.
This policy is designed specifically for a boat and provides coverage for
the motor, hull, trailer and some limited accessories as well as liability
in one policy. They also provide for options such as medical payments,
uninsured boaters, towing, additional accessories and personal effects.
For very large boats over 26' feet there is also the yacht policy. This
policy has many of the features of a boat owners, but can provide additional
coverage for emergency service for towing and automatic coverage for a
tender/dingy. Because of their high value these boats are usually written
on a "Valued Form", which sets a face amount of coverage without
consideration of depreciation.
A discussion of boat insurance would not be complete without discussing
personal water craft commonly referred to as "jet skis" or "wave runners".
Because of their small convenient size and fun operations these boats have
become very popular. Along with this popularity have come many serious
claims. All companies are very strict with their insurance for these
crafts. Many companies have cc or horsepower limits such as 650 cc or 45
horsepower. Coverage for jet skis with larger horsepower can be very
expensive to insure. With these crafts age of operator and auto driving
experience are also very instrumental in the rating. Someone under 16 or
having two or more speeds are usually excluded from operation.
Naturally, the premium for a boat policy will depend greatly on the value of
the boat, but it is also influenced by auto driving record, age and
experience of the operators and waters navigated. The premium can be
reduced if there are special safety features on the boat such as fume
detectors, depth finders, navigational devices, anti-theft devices and
safety courses sponsored by a Power Squadron or US Coast Guard.
