Coverage of the Week – Watercraft

By: Alan Mani, 8/25/14

Welcome to this week’s “Coverage of the Week” blog where we discuss a particular coverage to educate and clarify a particular topic. This week’s topic…Watercraft Insurance. Depending on the size and type of watercraft, you will be subject to different rates. I worked with one of our Personal Lines Account Executives to dig up information about this important coverage for you water-lovers – information is power, so let’s take a little time to learn a thing or two about that boat coverage you need…

What is watercraft insurance? What is it limited to? Well, as you guessed, watercraft insurance is insurance for all sorts of boats – Runabout, Mini Jet Boat, Sailboat, Pontoon, House Boat, Cabin Cruiser, Other Fishing Boat, Bass Boat, and Personal Watercraft (jet skis and wave runners). Depending on the size of the watercraft, it may be covered under your homeowner’s policy. The homeowner’s policy is very limited, however, and would have a minimal amount of coverage for really small boats with no engine or a very small engine. Coverage is dependent primarily on length and speed.  Once you pass a certain length and speed threshold, which varies by carrier, your homeowner’s policy won’t cover it. The upshot?  If you have a dingy with a tiny motor, your homeowners should suffice.  Anything else?  You are going to want to get a watercraft policy.  As with every situation, you should call your insurance account executive to make sure you have the coverage you need for the boat you have.

Under a watercraft insurance policy you’re covered for Bodily Injury & Property Damage Liability, Uninsured Boater, Medical Payments, Comprehensive & Collision Options, Personal Effects Replacement, On-Water Towing & Labor Coverage Service, Roadside Assistance, Fishing Equipment, Fuel Spill Liability, Wreckage Removal, Mexico Physical Damage, Water Sports, Navigational Area, and Pet Injury Coverage.  Some of the better policies will expand on these coverages, which is where your insurance account manager can guide you.

Pricing?  Watercraft policy cost is as wide ranging as the types of watercraft you are insuring.  At the low end for the smallest and slowest of boats, you could be looking at a couple hundred dollars (for the year), but there are so many variables that it is difficult to give you a clear idea of cost.  That is where – wait, have you heard this one before? – that is where your insurance professional comes into play…

Give us a call, we are happy to assist you with your summer boating fun.  Remember, insurance is preparation for those rare and difficult events.  Don’t skimp on this important coverage, and you will have the peace of mind to go out and enjoy the lakes and rivers, oceans and bays.