When it comes time to celebrate the summer and insure your boat, it can often make the most sense to separate your boat insurance from your homeowners’ policy. Many homeowner’s policies have limits or will NOT take action to cover risks that happen on the water. Most homeowners policies will provide an acceptable amount of coverage for smaller motors and boats, with a mandated limit of up to 100 horsepower. Most of these homeowner’s policies will only apply to inland lakes and waterways, which is suitable for us here in Missouri. 

Insurance Factors:

There are many factors that insurers consider when deciding whether or not to include you in their policy. Almost any vessel can be insured if the willingness to pay is there. Here are some important factors to keep in mind that your potential provider will be looking at:

• The boat’s age
• The vessel’s length
• Final value
• Amount of speed/horsepower 
• Condition of vessel
• Primary residence
• Type: is the boat inboard, outboard, utility, bassboat, cruiser, saltwater fishing, or sport
• Is the boat without a serial number?
• Is there more than 2 owners?
• Where will it be operating? Lakes, bays, rivers, or Great Lakes.

Types of Boat Insurance:

An agreed value policy covers the boat based on its value at the time the policy is written. While this form of coverage can tend to be pricier up front, there is not the factor of depreciation for a total loss. 

Cash Value policies do cost less upfront, but will factor in depreciation. These policies will ONLY cover up to the actual cash value of the boat at the time it is declared a total or partial loss. As your boat continues to age, your provider will likely insist on an actual cash value policy, which does provide extreme savings.

Kinds of Boat Insurance Policies:

Here are some of the various types of boats that can be covered: 

• Personal Watercraft
• Typically, companies call vessels that are 26 feet and smaller “boats,” while they designate those 27 feet and larger as “yachts.” Yacht coverage requires more specialization due to the increased size and exposure to unique elements of larger boats.
• Sailboat
• Dinghy
• Boat & PWC Rental – While not typically required, rental insurance will cover any damage that the vessel, passengers, and captain may incur.
• Boat Clubs: this covers every member of a charter or club during the boat’s operation.
• Professional – (ProAngler, Fishing Guides & Charters) – these policies are very customizable and will cover items such as getting to a tournament, equipment needs, and more.

What Boat Insurance Policies Cover:

Your boat’s usage and location will dictate the ideal coverage for you. An “all-risk” policy provides comprehensive protection but doesn’t cover every possible type of loss. In insurance terms, “all-risk” means that any risk not explicitly excluded in the policy will be covered. Exclusions typically include marring, severe dents, animal damage, manufacturer defects, freezing, ice, and normal wear and tear. This coverage allows you to add extra protection, such as coverage for personal effects, uninsured boaters liability, and towing assistance options.

Types of Boat Insurance Coverage: 

Here are some common elements you can add to a basic policy:

• Specialized Coverage: Coverage for something specific on your boat such as a lavish prop or navigation equipment.
• Salvage: Coverage that pays to remove your boat due to damage, from very minor to notable.
• Consequential Damage: Covers a loss that was the result of wear and tear rather than an accident such as mold or corrosion. Rot is also designated as an accident.
• Towing: Towing your boat across a body of water to safety can cost up to another $400 per hour.
• Cruising Extension: You can get additional or temporary coverage if you plan on leaving the USA, with the Bahamas and Mexico noted as common.

Insurance Claims:

Hopefully, you will never need to make a claim, but if you do, you should be fully prepared. Carrying proof of insurance on your boat is not a requirement, but it’s a good idea to keep your claim information nearby in case of an emergency. It’s best to inquire about how the claim process works while you are shopping and find out to what extent your agent will be available to you if you need assistance. If you need towing or a high amount of salvage, you’ll want someone who can stay around instead of just issuing payment and promptly leaving the scene.

Boat Insurance Cost Factors:

Many factors determine a policy’s cost, and these factors vary depending on your provider. Here are some items to consider:

• Cruising Area: Where most of your boating will take place.
• Boating Safety Education: if you have formal certification or training.
• Good Driving Records: This is just as relevant for boating as it is for driving.
• Liability Limits: The higher the limit, the higher your overall cost.
• Deductible: The higher the deductible, the lower your premium will be.

What Should I Look For in a Yacht Policy?

Hull Insurance is all of the risk direct coverage that encompasses a leasing agreement with a very broad spectrum of terms. At the time of writing the policy, all parties agree on the exact value of the vessel, which they will pay in case of a total loss. A durable yacht policy will also include the entire replacement cost on partial losses. Batteries, your sail, canvas, outboards, and sometimes outrives are all considered elements that can depreciate over time. Aside from the complete provision of judgment payments against you, hull insurance also steps up when needed for defense logistics if needed in Admiralty courts. 

Set Sail With Confidence And Clarity on Your Side! 

Boating provides the ultimate family fun and time away from neverending pressures! Preserving this special interval of recreation is one of our many specialties at Alexander Insurance Agency of St. Charles, as we have been assisting Missouri families to build and preserve their dreams for numerous rewarding decades. Contact us today to ensure that your next “ordeal with oars and masts” is a rewarding one!