Why Do I Need Boat Insurance?

There’s nothing quite as exciting as boating: hearing the lapping waves, feeling the wind in your hair, and the sun on your face. It’s therefore not surprising that according to the National Marine Manufacturers Association, 75 million people in the United States participate in recreational boating. Just as you protect your home and automobiles with insurance coverage, you need boat insurance in the event of damage or injury.

Does My Homeowners Policy Cover My Boat?

While most Ballston Spa, NY homeowners insurance policies cover boat damage, they have a limited dollar amount, and they don’t provide coverage for liability. To cover an expensive boat, pay for damage or injury to others, and provide medical payments you’ll need a separate Zapp Insurance Agency boat policy.

What Types of Boat Policies Are There?

In general, there are three types of boat insurance policies:

  • Actual cash value: This will pay to replace or repair your boat, less its depreciated value. For example, while you might have purchased your new boat in 2012 for $35,000, today it might only be worth $20,000. With an actual cash value policy, your insurance could pay up to $20,000 to replace or repair your boat.
  • Agreed amount value: This pays to replace or repair your boat up to your policy’s set value.
  • Replacement cost: This will pay to repair or replace your boat.

What Does Boat Insurance Cover?

Like your auto insurance policy, your boat insurance will typically include coverage for any property damage your boat causes to other boats, docks and piers, bodily injury to others, and liability such as damage caused by collision or running aground. Additionally, you can opt to buy comprehensive coverage for theft, personal property damage, vandalism, uninsured boater insurance, and roadside assistance in case your boat needs to be towed.

Understanding Your Boat Policy

Your boat insurance policy will likely have restrictions which can include:

  • Limits on your insurance coverage for ocean use
  • A layup period where coverage is suspended during months your boat is not in use
  • Restrictions on underage drivers

For more information about how boat insurance protects you and your Ballston Spa, NY assets, call your Zapp Insurance Agency agent today to discuss options and find the best policy for your needs.