Boat insurance serves as a form of protection for boat owners and their personal belongings in the event of an incident on the water. Reputable boat insurance providers provide flexible coverage options for various types of vessels, along with reasonable premiums and numerous additional advantages. It is highly recommended for every boat owner or operator to consider obtaining boat insurance. This insurance not only safeguards them against personal liability in case of an accident but also provides coverage for any potential loss or damage to their boat. In this comprehensive guide, we will delve into some of the top-rated companies that offer boat insurance, outlining their offerings, benefits, and drawbacks. Additionally, we will explore specialized coverage options tailored to specific use cases or boat types.
Having possession of a boat provides numerous opportunities to partake in leisurely pursuits like sailing, fishing, and visiting secluded beaches. However, challenges such as accidents, overturning, theft, fire, and inclement weather can cast a shadow over your boating escapades. For the best boat insurance, Geico Marine, Markel for anglers, Chubb for yacht owners, SkiSafe for jet ski and personal watercraft owners, American Family for houseboats, and Progressive for savings are the top choices.
What is Included in Boat Insurance Coverage?
Hull and equipment coverage serves as a fundamental aspect of a boat insurance policy. This particular coverage ensures that any damage incurred by your boat and its dinghy, including theft and vandalism, will be financially compensated.
Another crucial component of boat insurance is boating liability insurance. This type of coverage protects you in situations where you are legally responsible for injury or property damage to another individual as a result of the use, ownership, or maintenance of your boat. It is important to note that boat liability insurance also extends to individuals who operate your boat with your permission.
In addition to these foundational coverages, there are several other types of boat insurance available:
1. Personal effects coverage: This coverage reimburses you for the replacement of your belongings that are damaged while on the boat, being loaded on or off the boat, or stored in a dock box by the boat.
2. Medical payments coverage: This coverage pays for the medical expenses of someone who sustains an injury while on your boat, boarding, or leaving your boat.
3. Uninsured boater coverage: In the event of physical contact between your boat and an uninsured boat, this coverage pays for the medical bills associated with bodily injury.
4. Towing and assistance: Included as a standard part of a boat insurance policy, this coverage provides assistance and towing services.
5. Boat trailer insurance: This coverage pays explicitly for damage and theft related to your boat trailer.
6. Fuel and other spill liability insurance: In the unfortunate event of a spill, this coverage pays for the containment and cleanup of the spill, as well as any property damage caused to others. Additionally, if you face a lawsuit regarding the spill, this coverage also covers your legal defence, with the lawyer being selected by your insurance company.
Exclusions in Boat Insurance Policies
Presented are instances of standard exclusions found in boat insurance policies.
- Normal usage-related damage
- A slow decline in the condition
- Decay
- Rust
- Effects of weather exposure
- The harm caused by pests, bugs, sea creatures, and other animals
- Issues with machinery
- Failures in electrical systems
- Structural failures
- Excessive heat or galvanic reactions
- Freezing or ice damage
- Growth of mold or mildew
- Surface imperfections like scratches or dents
- Formation of blisters or separation of layers
- Incomplete, incorrect, or substandard repairs, upkeep, or renovations
- Deliberate actions, such as purposeful harm to the boat.
Options for Coverage of Boat Insurance
Boat insurance offers various coverage types to assist in different scenarios, similar to car insurance.
- Property coverage safeguards the boat from theft and damage caused by accidents or sinking, whether the boat is on land or water. You have the option to select between actual cash value or agreed value, also known as replacement cost coverage, which impacts your expenses and determines the amount the insurance company will pay in case of a claim.
- Liability insurance covers damages to someone else’s property or injuries caused by your boat during an accident. It also includes legal fees if you are sued over a covered incident.
- Medical payments coverage pays for medical bills if you or your passengers are injured in a boating accident.
- Uninsured watercraft coverage covers medical bills if an uninsured boater collides with your boat.
- Additional insurance options for boat owners include coverage for boat trailers, towing, special equipment, boating accessories, dock contract liability, fishing guide coverage, ice and freezing coverage, mechanical breakdown, personal property, and fuel spills or wreckage removal in case of an accident on the water.
Is Boat Insurance Necessary?
Some states mandate boat insurance. Furthermore, if you dock or finance your boat, the marina or lender will likely require coverage.
Even if your state does not mandate it, think about the consequences of not having boat insurance. In the event of an accident, you will be responsible for your repairs and liability to others. With the average boat insurance claim at around $11,000, as reported by The Hanover Insurance Group, lacking coverage could lead to a challenging financial situation.
The type of insurance required will vary based on the size, type, and value of the vessel:
- Small Boats
Standard homeowners’ or renters’ insurance policies typically cover smaller boats like canoes or small sailboats, but they have limited property damage coverage.
While a homeowners insurance policy may offer property coverage for a small boat, motor, and trailer, it does not include liability insurance. However, you can add boat liability coverage to your home insurance policy for an extra fee.
- Larger Boats
For larger and faster vessels like yachts, a boat insurance policy is necessary. Depending on your boat’s accessories, you may need additional insurance, such as trailer coverage.
To increase your liability coverage limits, consider umbrella insurance. This provides additional liability protection for your auto, home, and boat, offering extra insurance in case of a costly boating accident.
Which States Mandate Boat Insurance?
Boat insurance is mandatory in only two states at present: Arkansas and Utah. In these states, residents are obligated to obtain insurance for motorboats or personal watercraft with engines that have a minimum of 50 horsepower.
For Arkansas residents, it is necessary to acquire a boat insurance policy that provides a minimum of $50,000 in liability coverage for each incident.
On the other hand, Utah residents have the flexibility to choose between two options for liability coverage:
1. $25,000/$50,000 coverage for bodily injury/death and $15,000 coverage for property damage.
2. A combined policy with a coverage limit of $65,000.
What is the Price of Boat Insurance?
The cost of your boat insurance can vary based on a variety of factors, including:
– The type of boat you own, whether it’s a fishing boat, pontoon, or sailboat
– The length of your boat
– The age of your boat
– The region where you live; for instance, boat owners in hurricane-prone areas may pay more
– The number of engines and the horsepower of your boat
– The purpose of your boat usage, whether for recreational or commercial purposes
– The storage location of your boat
– Your level of boating experience and that of others covered under your policy
– Safety precautions taken, such as completing a boating safety course
– Your past boat insurance claims history.
Agreed Value versus Actual Cash Value for Watercraft
The cost of your boat insurance and the amount you receive when filing a claim is influenced by whether you have agreed on value or actual cash value coverage.
The distinction lies in depreciation. Let’s explore the contrast between agreed value and actual cash value coverage.
Agreed value coverage determines the value at the time of purchasing the policy and does not account for depreciation when filing a claim. However, it is more expensive.
On the other hand, actual cash value coverage determines the value at the time of the loss and does account for depreciation when filing a claim. This type of coverage is less expensive.
While actual cash value coverage may offer cheaper premiums, it may provide a lower reimbursement if your boat is damaged or stolen. Insurance companies may require this type of coverage for older boats, typically those that are more than three years old.
Obtaining a Quote for Boat Insurance
Begin your search for boat insurance quotes by reaching out to your current auto or homeowners insurance provider. Opting to purchase boat insurance from the same company may make you eligible for a bundling discount.
While some insurance company websites offer online boat insurance quotes, the availability of such quotes may be limited. To explore a broader range of options, consider reaching out to an independent agent who can provide quotes from various insurers.
Prior to requesting quotes, take some time to determine the type of coverage you require. Gather specific details about your vessel to ensure the insurance company can provide you with an accurate quote. Additionally, consider any optional coverage you may be interested in, such as towing assistance.
What are the requirements for applying for boat insurance?
When completing a boat insurance application, you can anticipate being asked a series of standard questions in addition to providing your personal details and information about the boat. These may include:
1. Within the past three years, have you filed any insurance claims, been involved in any accidents, or experienced any losses related to boating or automobiles?
2. Please provide a list of any violations, whether related to boating or automobiles, committed by the owner in the last three years.
3. Is the boat currently damaged, or has it sustained any damage in the past?
4. What is the largest boat you have owned and operated?
5. Has any modification been made to the boat?
6. Has the owner completed any training courses, such as a state-certified safety course?
Discovering the Top Boat Insurance Options
Different insurance companies offer varying prices for boat insurance, just like how a sailboat differs from a pontoon. To find the most favourable boat insurance price, it is recommended to compare quotes from multiple insurance companies.
While some insurance companies provide free online quotes on their websites, not all boat insurance providers offer this option. In such cases, you can contact the insurance company directly or reach out to an independent insurance agent for assistance.
Additionally, it is advisable to inquire about potential boat insurance discounts. These may include a multi-policy discount, where you can save by combining multiple policies with the same insurer, such as boat and car insurance. Another discount to consider is the boat safety discount, which can be obtained by completing an approved boater safety class. Furthermore, owning a diesel-powered boat may make you eligible for a discount, as diesel boats are generally considered less hazardous than gasoline-powered ones. If your boat is equipped with safety features like fire suppression systems and Coast Guard-approved fire extinguishers, you may also qualify for a discount. Moreover, some insurance companies offer payment discounts for paying your annual premium in full, going paperless, or enrolling in auto-pay. Lastly, if you have not made any claims in the past two years, your boat insurance company may provide a claims-free discount.
By considering these factors and comparing quotes from different insurance companies, you can find the best boat insurance price that suits your needs.
Best Boat Insurance of 2024
- Top Choice: Geico Marine
- Top Pick for Anglers: Markel
- Top Selection for Yacht Owners: Chubb
- Top Option for Jet Ski and Personal Watercraft Owners: SkiSafe
- Top Pick for Houseboats: American Family
- Top Choice for Savings: Progressive
Geico Marine, a subsidiary of Geico, offers boat insurance that caters to the needs of the majority of boat owners. With a strong lineup of coverages, Geico Marine provides insurance for boats up to 50 feet in length and boats valued up to $2.5 million. Policyholders also have the advantage of 24/7 assistance and access to the BoatUS Catastrophe (CAT) Team, which brings valuable resources to help recover and salvage vessels after a natural disaster. However, it’s important to note that Geico Marine does not insure wood or composite boats, and boats over 40 years old are not eligible for coverage. Despite these limitations, Geico Marine has been a trusted name in boat insurance since the 1980s and is backed by the financial strength of Berkshire Hathaway. With an A++ (Superior) rating by AM Best, Geico Marine provides reliable coverage for boat owners.
Best for Fishing Enthusiasts:
Markel, a specialized insurer, provides boat insurance with a range of coverages and optional add-ons, some of which are unique to the company. Specifically designed for fishing enthusiasts, Markel’s policies offer protection for fishing equipment, boat lifts, trailers, and even professional angler liability coverage.
While Markel’s coverage is comprehensive, the settlement of claims may take a few weeks, as reported by the company’s documentation and online reviews. This could potentially lead to delays in getting boats repaired or replaced.
Advantages
- Tailored coverage for rods, reels, and other gear
- Includes emergency towing and personal property coverage
- Offers lift and trailer coverage
Disadvantages
- Claims may have a longer settlement period
- Some negative feedback from customers online
Specifications:
Coverages Available:
- Watercraft liability
- Medical payments
- Agreed value watercraft and equipment
- Emergency towing
- Personal effects
- Uninsured/underinsured boater
- Pollution liability
- Replacement cost settlement
- Boat lift
- Trailer
- Fishing equipment
- Professional angler liability
- Tournament fee reimbursement
- Crash damage
- Theft coverage
- Theft away from home
- Wreck removal
Exclusions:
- Costs of gas, oil, parts, or a loaned battery in case of a breakdown
Navigational Limits:
- Not specified
Discounts and Benefits:
- Experienced boater
- Vanishing deductible for loss-free boaters
- Multi-boat policy
- Outboard propulsion
- Primary operators age 40 and over
- Diesel engine
Salvage Coverage:
- Wreck removal coverage included
Insurer Financial Strength:
A (Excellent) rating by AM Best.
Best for Yacht Owners:
Chubb offers specialized coverage for yacht owners, with high limits available for captained vessels. However, vessels must be at least 36 feet long to qualify for coverage, and crew is required for vessels valued over $3 million. Chubb is a global insurer that provides yacht insurance for pleasure cruisers and captain’s yachts, including those over 70 feet in length. The coverage includes unique options such as search and rescue, longshore and harbour workers’ compensation, and the Oil Pollution Act. Additionally, Chubb offers benefits like temporary substitute watercraft in case of damage. The insurer has an A++ (Superior) rating by AM Best.
Best for Jet Ski and Personal Watercraft Owners:
SkiSafe is a speciality provider that has been in the industry for almost 50 years and has insured over half a million boaters. While SkiSafe does not underwrite its policies, the responsibility falls on AXIS Insurance Co., a reputable Bermuda-based insurer.
SkiSafe’s boat insurance is tailored to meet the specific needs of personal watercraft owners. The coverage options are consolidated and focus on the reduced needs of these types of boaters. Emphasis is placed on providing comprehensive coverage for injuries, including those related to water sports. Additionally, SkiSafe offers special savings during lay-up periods, recognizing that the personal watercraft season is relatively short compared to other types of boats.
The coverages offered by SkiSafe include accident, physical damage, bodily injury, medical payments (with a $25,000 limit for no-fault medical payments), theft, and water sports liability. However, it’s important to note that commercial use is not covered by SkiSafe’s policies.
SkiSafe also provides salvage coverage, including towing and roadside assistance. Navigational limits are clearly stated in the policies, and prior approval is required if owners wish to take their vessels to another country.
To further benefit their customers, SkiSafe offers various discounts and benefits. These include discounts for completing a boating safety course, maintaining a clean driving record, restricting navigation territory, owning multiple watercraft, having winter layups, and being an experienced boater.
In terms of financial strength, SkiSafe is backed by AXIS Insurance Company, which holds an A+ (Superior) rating from AM Best. This rating reflects the insurer’s strong financial stability and ability to meet its policyholders’ obligations.
Here are the advantages and disadvantages of choosing SkiSafe as your insurer:
Advantages:
1. SkiSafe offers coverage specifically designed for personal watercraft, ensuring that your unique needs are met.
2. Your vessels are still covered during winter lay-up periods, providing year-round protection.
3. Water sports liability coverage is included, giving you peace of mind while enjoying your favorite water activities.
Disadvantages:
1. SkiSafe does not provide coverage for commercial use, so if you use your watercraft for business purposes, you will need to seek coverage elsewhere.
2. There is a $25,000 limit for no-fault medical payments, which may not be sufficient for some individuals with higher medical expenses.
Best for Houseboats:
American Family offers a unique insurance policy specifically designed for houseboats. This policy includes special coverage tailored to the needs of houseboat owners, such as up to $100,000 of personal effects coverage. It also provides coverage for houseboats up to 54 feet in length (40 feet in Georgia).
However, there are a few drawbacks to consider. A marine survey may be required before obtaining coverage, and you will need to work with a local agent to purchase the policy. Additionally, there may be some limitations on coverage, such as the absence of emergency towing or parts delivery. It is unclear from the website whether these services are included in houseboat policies.
Despite these limitations, American Family offers unique discounts that can be beneficial for houseboat owners. They also provide a range of coverages, including physical damage, bodily injury, property damage, medical expenses, personal effects coverage, watercraft equipment coverage, houseboat repair cost coverage, and total loss agreed value coverage.
There are a few exclusions to be aware of, such as houseboats not being allowed to be used as permanent residences and the restriction on using the vessel for business purposes. The maximum length for coverage is 54 feet (40 feet in Georgia), and the vessel’s MSRP must be less than $250,000. There are also horsepower limitations depending on the type of boat.
The navigational limits and salvage coverage are not disclosed on the website. However, the American Family has an excellent financial strength rating of A by AM Best.
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Overall, American Family’s houseboat insurance offers specialized coverage for houseboat owners, but it is vital to consider the limitations and exclusions before making a decision.
Best for Discounts:
Progressive is the top choice for discounts due to the vast array of discounts available, the convenience of purchasing coverage online, and the coverage of up to $1,000 in case a pet is injured or killed in a boating accident. However, there are limitations on boat length and value, as well as certain types of vessels that are not eligible for coverage. Progressive has a strong boat insurance offering, with policies suitable for most boat owners with vessels less than 50 feet long and valued at less than $500,000. The insurer stands out for its extensive list of available discounts, including unique savings for switching coverage from another provider and accident forgiveness for various incidents.
Conclusion
Boat insurance differs significantly from auto or home insurance as it is tailored to meet the unique requirements of individual boat owners. Given the diverse needs of boat owners, it is crucial to thoroughly investigate insurance providers in order to identify the most suitable carrier for your specific vessel and its intended purpose. Our research has revealed that Geico stands out as the top insurance company, offering coverage for a wide range of vessels and accommodating the most common types of uses.