If
you own a boat, there’s not much doubt that you spend most of your
time and energy either getting it ready to put out on the water or
actually enjoying your boat on a lake or stream. As a result, there
may be very little time left over for financial considerations, such
as boat insurance. However, carrying insurance on your boat is the
intelligent thing to do. Following are a few practical things you
should know about boat
insurance.
Your
Homeowners Insurance May Cover Your Boat
If
you store your boat on your own property, either in a garage or
someplace else, it will most likely be covered by your homeowner’s
policy. As long as the boat remains on your property, it will be
protected against theft, storm damage, or any other mishap. However,
the boat will not be covered if the damage is intentional or caused
by negligence. There is also a possibility that your boat can be
covered by your homeowner’s policy while you’re transporting it
from one place to another or while you actually have it out on the
water. It depends on how your policy is written. You should check
with your insurance agent to determine exactly what your homeowner’s
policy will cover in regard to your boat.
You
Should Carry Boat Insurance for a Docked Boat
Unless
you have your boat tied up at a personal dock on your property, it
should be insured while it’s docked. Most marinas will carry
insurance for the boats that are docked there, and they take quite a
few precautions to try and avoid trouble. Despite their best efforts,
an accident could occur. The marina owner will space docks far enough
apart that they won’t normally rub against each other and cause
damage, but if someone leaves too much line from the boat to the
dock, a boat could drift over too far and bump another boat. Even
though the marina carries liability insurance, it wouldn’t hurt for
you have your own boat insurance.
Carrying
Liability Coverage Is the Smart thing to Do
Due
to the fact that we live in an extremely litigious society, carrying
liability coverage is the smart thing to do. Even though insuring
your boat isn’t really mandatory in some places, being without
liability insurance could create a financial hardship if someone is
injured while on your boat or if your boat causes damage to another
boat, a dock, or someone else’s property. Taking the precaution of
ensuring you have all the latest safety equipment may not be enough.
Accidents can happen despite your best efforts to avoid them,
resulting in injury or damage to an object or a person.
Routine
Maintenance Is Necessary
If
you decide to carry boat insurance, you should make every effort to
do routine maintenance at regular intervals. It is necessary in order
for your boat insurance policy to remain in effect. The reasoning
behind this is obvious--if you don’t keep your boat and its running
gear in good shape, it could fail at an inopportune moment and either
hurt someone or cause damage to someone else’s property. If that
happens, your insurance company won’t pay off on your claim because
you failed to meet the stipulations of the policy.
The
Type of Boat You Have Affects Insurance Costs
The
type of boat you have will affect how much your insurance premiums
are. A large power boat will cost more to insure than a small boat
with an outboard motor, or one powered by oars or paddles. A boat
that is going to be used commercially will cost more to insure than a
pleasure craft. If you only use your boat a few months out of the
year, it will cost less to insure than if you use it all year long.
Ocean-going boats are insured at different rates than a boat used on
inland waterways or the Great Lakes. Check with your insurance
carrier to find out what your rates will be.
Financed
Boats Call for Insurance Coverage
If
you still owe money on your boat, you must carry insurance in order
to operate it on public lakes or streams. In this way it is similar
to automobile insurance--if it’s financed, you need to have
insurance coverage. The primary reason for this is to make sure the
lender will receive what’s owed to them if you have an accident or
fail to keep up with payments.
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