Having ultimate protection against unforeseen incidents, especially accidents, theft, or damage of your boat can give you relief and a sense of security in times of trouble. However, sailboat insurance coverage sometimes may come with limitations depending on your insurer and the type of policy you are opting in for. So, as a boat owner, you may want to know exactly what your insurance policy will cover, does it offer extra benefits, or will it not exclude the most important coverage?

• What does sailboat insurance cover and its costs?
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This way, you will understand whether that kind of policy is worth your investment or if you may have to consider other available options. This guide will help save you the burden of buying insurance policies that won’t much your expectations by highlighting clearly what boat insurance will not cover, the extent of coverage, and the available policies you may want to consider first.

What is boat insurance coverage?

If you are new to marine insurance, boat insurance is an essential consideration that should be on your bucket list. This type of insurance coverage provides financial protection for boat owners against various risks associated with owning and operating a boat.

Depending on your policy and insurer, boat insurance usually includes coverage for physical damage to the boat itself from accidents, theft, or natural disasters. Additionally, it as well includes liability coverage, which protects against legal and medical expenses if the boat owner is responsible for injuries to others or damage to their property.

What does boat insurance typically cover?

Boat insurance typically covers you against a wide range of risks related to owning and operating a boat as we have illustrated below:

1. Physical Damage Coverage: This includes Collision, which covers repairs or replacement if your boat is damaged in a collision. Then, there is also Comprehensive boat insurance, which will cover non-collision-related damage, such as from weather, fire, vandalism, or hitting an object, and sinking.

2. Liability Coverage: This involves Bodily Injury Liability, which covers medical expenses and legal costs if you’re responsible for injuries to others. Then, there is also Property Damage Liability, which covers damage you cause to someone else’s property, such as docks or other boats.

3. Medical Payments Coverage: Covers medical expenses for injuries sustained by you, your passengers, or anyone on your boat, regardless of fault.

4. Uninsured/Underinsured Boaters Coverage: Provides protection if you’re involved in an accident with someone who doesn’t have sufficient insurance.

5. Theft Coverage: This is also under boat insurance and covers the loss or damage of your boat due to theft.

6. Environmental Damage Coverage: Pays for the costs associated with pollution or environmental damage caused by your boat.

7. Personal Property: This policy covers loss or damage to personal items on the boat, like fishing gear or electronics.

What does boat insurance not cover?

On the other hand, boat insurance sometimes comes with limitations and exclusions depending on your insurer and the type of policy you have opted in. Below are some of the things your boat insurance does not cover and will come from your pocket:

1. Wear and tear

In case your boat undergoes gradual deterioration, corrodes, or develops mold overtime due to a lack of maintenance, most insurance companies will not cover you against damages that occur as a result of this. Additionally, damages caused by long-term exposure to elements like sun, water, and salt that cause parts of the boat to degrade slowly may also not be covered by your insurance provider.

2. Damage from Poor Maintenance

Boat owners are always advised to have routine maintenance for their boats to keep in good conditions. However, if damage occurs because the boat was not properly maintained, such as engine failure due to lack of oil changes or hull damage from not cleaning the boat, it is typically not covered by insurance.

3. Insect, animal, or marine life damage

It is also important to note that damage caused by animals, insects, or marine life, such as wood rot from termites, chewed wiring from rodents, or barnacles attaching to the hull, is often excluded and your insurance will not cover resulting damages. It is assumed that such issues are preventable with proper maintenance.

4. Commercial boats

For those that own commercial purpose boats used for chartering, fishing tours, or other business activities, take note that standard boat insurance policies will not cover such a boat. Hence, these policies are intended for personal use. Therefore, if you face any damage or liability during the above activities, your boat insurance provider will not cover you against such risks.

5. Illegal activities

Damage or liability sustained from illegal activities, such as operating the boat while under the influence of drugs or alcohol, will not be covered. Engaging in illegal fishing or violating environmental regulations can also void coverage.

6. High-risk or racing activities

Standard policies often exclude high-risk activities like racing or stunt boating. These activities increase the likelihood of accidents and damage, so unless you purchase additional coverage specifically for these activities, any resulting damage or liability may not be covered by your insurance.

Do you really need boat insurance cover?

As a legal requirement, some states or countries require boat insurance, especially if you’re operating a boat in public waters. So, it’s important to check local regulations to see if it’s mandatory in your area or state.

However, beyond legal boundaries, boat insurance provides financial protection against risks like damage, theft, or liability claims. Without it, you could face significant out-of-pocket expenses in case of an accident or loss. Therefore, we highly recommend boat owners to opt in for a boat insurance policy that favors them.

Conclusion

Generally, there are several circumstances and conditions where your boat insurance may not cover you in case the cause of damage is not included in your policy. So, however much your boat is insured, it’s also important for you to study the language in your policy to understand the extent of coverage, limitations, and benefits. This way, you will be prepared for out-of-pocket expenses in case of anything.

Frequently Asked Questions