BOAT INSURANCE

Boat Insurance Explained

Boat insurance provides financial protection for boat owners against losses related to damage, theft, liability, and accidents. It typically includes physical damage coverage (for repairs or replacement of the boat due to collisions, storms, fire, or vandalism), liability coverage (for injuries or property damage caused to others), medical payments coverage (for injuries to passengers), and uninsured/underinsured boater coverage (for accidents involving an uninsured boater). Additional options like towing assistance and personal property coverage can also be included. Coverage varies based on the type of boat and usage.

General Coverages

Pursuant to your particular policy language, coverage provisions, and exclusions; boat insurance policies can include coverage for:

Physical Damage Coverage – Covers repairs or replacement of the boat. The coverage usually applies to the hull, motor, sails, and permanently attached equipment.

Liability Coverage – Covers bodily injury and property damage you cause to others while operating your boat. Pays for medical expenses, repair costs, and legal fees if you are sued.

Medical Payments Coverage – Covers medical bills for you and your passengers if injured in a boating accident, regardless of fault.

Uninsured/Underinsured Boater Coverage – Protects you if an uninsured or underinsured boater causes an accident. This covers medical costs, lost wages, and other damages.

Personal Effects Coverage – Covers personal belongings on the boat, such as fishing equipment, electronics, clothing and personal items. Some policies may require additional riders for high-value items.

Towing and Emergency Assistance – Pays for on-water towing, fuel delivery, and mechanical assistance if your boat breaks down. Some policies extend coverage to trailer towing if your vehicle breaks down while transporting the boat.

Wreck Removal Coverage – Covers the cost of removing a sunken or wrecked boat, which is often required by law.

Claims Scenario

Mike owns a 25-foot fishing boat and has a boat insurance policy with the following coverages:

Physical Damage Coverage: Agreed value of $50,000
Liability Coverage: $300,000
Medical Payments Coverage: $5,000
Towing and Emergency Assistance: Included

Mike docks his boat at a marina before a predicted storm. Despite securing it properly, a severe thunderstorm with high winds and hail causes significant damage to the hull, windshield, and motor. Additionally, his fishing gear, which was stored in the boat, is damaged beyond repair.

Mike documents the damage with photos and videos. He contacts his insurance company to report the claim. A marine surveyor (adjuster) is assigned to inspect the damage.

How Boat Insurance Helps:

The adjuster confirms the damage was caused by the storm and is covered under physical damage coverage. The cost to repair the hull, windshield, and motor is $12,000. Mike’s fishing equipment, valued at $2,000, is also covered under his personal effects coverage.

Since he has an agreed value policy, his payout is based on the predetermined coverage amount rather than depreciation. Mike pays his $1,000 deductible, and the insurance company covers the remaining $13,000.

Contact CastleWise to discuss Boat insurance coverage.