Residing in Florida involves being surrounded by the Atlantic Ocean and numerous bodies of freshwater. It is indeed a dream come true for fishermen, kayakers, and others who appreciate being in the surf and sunshine. Many individuals in our lovely state find that making the most of their time on the water also involves investing in a boat or other watercraft. Furthermore, some people require boats for their professions. Regardless of the reasons for owning them, boat owners must have a good understanding of boat insurance and should contact our Miami insurance law attorneys when faced with issues or questions.
Boat owners’ insurance, as the name implies, is an insurance policy designed to safeguard boat owners. It functions similarly to car insurance by providing coverage for physical damage to the boat, as well as injuries or fatalities resulting from its operation.
Do I Need Boat Insurance?
While boat insurance may not be required in all states, it’s often necessary if you dock or finance your boat, as marinas or lenders typically mandate coverage. Even in states where it’s not compulsory, opting for boat insurance is prudent. Without coverage, you could be responsible for repair costs and liabilities in the event of an accident. Considering the average boat insurance claim is around $11,000, according to The Hanover Insurance Group, being uninsured could lead to significant financial strain in the event of an incident.
Is Boat Insurance Mandatory?
Although boat insurance is not mandatory in Florida, it is strongly advised. By not having it, you run the risk of losing your investment in case your boat gets damaged or destroyed due to fire, accidents, or theft. Additionally, if you are responsible for an accident, you will not have the coverage provided by a boat insurance policy.
It is worth noting that your homeowner’s insurance policy might provide some coverage for your boat, but the extent of this coverage varies from policy to policy. Even if it does offer coverage, it is typically a minimal amount.
Considerations Regarding Coverage
When searching for an insurance policy or reviewing an existing one, it is important to pay attention to specific details. This involves:
- Liability coverage
Liability coverage is arguably the most crucial aspect of an insurance policy. In the event that someone claims to have been injured while on your boat or due to your boat, your insurance policy can provide the necessary coverage for that injury. It also covers any damage caused by your boat to someone else’s property. Liability coverage is particularly valuable when you are at fault in a boating accident, as it will compensate for the losses incurred by the other party. Without it, you may personally be held responsible for covering these damages.
- Deductible Amount
A deductible refers to the amount you are obligated to pay towards a claim before the insurance company fulfills its payment obligations as per the terms of the insurance policy. Deductible amounts are determined in one of two ways. Firstly, they can be a fixed dollar amount, such as $500, $1,000, or $2,000. This is the most common method of determining deductibles. The other way is by calculating it as a percentage of the total policy amount. For instance, a 1% deductible for a boat insured at $150,000 would amount to $1,500.
As I reside in Florida, it is crucial to ascertain whether an insurance policy includes a named storm deductible. In the event that your boat sustains damage during a hurricane, you may be required to pay a specific deductible amount.
In general, the higher the deductible, the lower the premium, and vice versa.
- Coverage for Uninsured Watercraft
Since insurance is not mandatory according to Florida law, it is advisable to seek coverage for uninsured watercraft in any insurance policy you are considering. This type of insurance ensures that if an uninsured boater causes an accident involving your boat, the damages to your boat, as well as your medical expenses, will be covered. It saves you from having to pay out of pocket or personally pursuing legal action against the at-fault party (although this may still be an option you may want to discuss with one of our Miami insurance law attorneys).
- Fuel and Oil Spill Protection
Leaking or spilling fuel or oil into the waters of the United States is prohibited by federal law, and you could be held accountable for the cleanup if you are responsible for any leaks or spills. Due to the potential expenses involved, it is advisable to seek out insurance coverage for this type of incident.
- Equipment Not Attached to the Boat Coverage
There are various equipment and items typically found on a boat that may or may not be included in the insurance policy. Since many of these items are costly, it is crucial to verify whether the policy offers coverage for:
- Water skis
- Anchors
- Scuba diving equipment
- Snorkeling gear
- Fishing equipment
- Jewelry
- Cell phones
- Coverage for Physical Damage
Even the most cautious boaters may encounter damage to their boat. Physical damage coverage protects the actual boat itself, covering damages sustained while the boat is docked, in storage, or out on the water. This coverage extends to all parts of the boat, including the interior.
- Medical Payment Protection
Medical payment insurance provides coverage in case an individual is injured by your boat or while on your boat. It can extend to skiers and tubers, and the fault is typically not a determining factor in the application of this coverage. The coverage amounts may vary.
- Navigational Limits
Certain insurance policies restrict coverage to specific waters. It is essential to be aware of any limitations on where you can operate your boat before filing a claim, as it could be denied if you are in an area not covered by the policy.
- Be mindful of policy exclusions
It is crucial to understand both the coverage and exclusions of a boat insurance policy. Common exclusions found in basic boat policies may include mold, manufacturer’s defects, design defects, wear & tear, infestations & marine life, unnamed operators, and improper storage and transportation. If you suspect that a certain type of damage has been wrongly excluded from your policy, we recommend consulting with a Miami insurance law attorney.
Calculation of your Boat Insurance Premium
Insurance companies take into account various factors when calculating the premium for a boat insurance policy. These factors encompass the location where you navigate, the age and size of your boat, the type and condition of the boat, the primary location where the boat is kept, the speed at which it operates, the owner’s driving record for both the boat and motor vehicle, the owner’s boat safety certifications, the liability limits, and the deductible amount.
Discovering the Optimal Boat Insurance
When comparing boat insurance prices, it’s important to note that different insurance companies offer varying rates. To secure the most competitive boat insurance price, it is advisable to obtain quotes from multiple insurance providers. While some companies offer free online quotes on their websites, others may require you to contact them directly or consult an independent insurance agent.
In addition to comparing prices, it’s worth inquiring about potential boat insurance discounts. These may include a multi-policy discount for bundling boat and car insurance, a boat safety discount for completing a boater safety class, discounts for diesel-powered boats, discounts for boats equipped with safety features, and payment discounts for various payment methods. Furthermore, you may be eligible for a claims-free discount if you have not filed a claim in the last two years.
How Much Does Boat Insurance Cost?
The cost of your boat insurance can vary based on a variety of factors, including the type of boat you own (fishing boat, pontoon, sailboat), the length and age of your boat, your location within the country (areas impacted by hurricanes may have higher rates), the number of engines and horsepower, the purpose of your boat usage (recreational or commercial), where and how your boat is stored, your years of boating experience, safety measures taken (such as completing a boating safety course), and your insurance claims history.
How to Get a Boat Insurance Quote
To obtain a boat insurance quote, you can begin by reaching out to your current auto or homeowners insurance provider. Purchasing boat insurance from the same company may make you eligible for a discount on bundled policies.
While some insurance companies offer online boat insurance quotes on their websites, the availability of such quotes may be limited. To explore more options, consider contacting an independent agent who can provide quotes from various insurers.
Before seeking quotes, carefully consider the type of coverage you require. Gather detailed information about your vessel to ensure the insurance company can provide an accurate quote. Additionally, think about any optional coverage, such as towing assistance, that you may desire.
The insurance needed for your vessel will be determined by its size, type, and value:
- For Small Boats
Smaller boats like canoes or small sailboats are often covered by standard homeowners insurance or renters insurance policies but with limited property damage coverage.
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While a homeowners insurance policy usually covers property for a small boat, motor, and trailer, it does not include liability insurance. However, you can opt to add boat liability coverage to your home insurance policy for an extra fee.
- For Larger Boats
If you own a larger and faster vessel like a yacht, you will need to invest in a boat insurance policy. Depending on the accessories of your boat, you may require additional insurance, such as trailer coverage.
To enhance your liability coverage limits, consider umbrella insurance. This type of insurance offers additional liability protection for your auto, home, and boat, providing extra coverage in case of a costly boating accident.
Which States Mandate Boat Insurance?
Currently, only two states require boat insurance: Arkansas and Utah. Residents in both states are obligated to insure motorboats or personal watercraft with engines of 50 horsepower or more.
Arkansas residents must obtain a boat insurance policy with a minimum of $50,000 in liability coverage per incident.
Utah residents have the option to choose between two liability coverage options:
– $25,000/$50,000 for bodily injury/death and $15,000 for property damage
– A combined policy with a coverage limit of $65,000.
What Do I Need for a Boat Insurance Application?
When applying for boat insurance, you’ll need to provide basic personal information along with details about the boat. Common questions on a boat insurance application may include:
1. Any history of boating or automobile insurance claims, accidents, or losses in the past three years?
2. Any violations by the owner related to automobiles or boating in the last three years?
3. Is the boat currently damaged, or has it sustained damage in the past?
4. What is the largest boat you have owned and operated?
5. Has the boat undergone any modifications?
6. Have you completed any training courses, such as a state-certified safety course?
Conclusion
Enhance your boating experience with the support of boat insurance. Whether you navigate lakes, rivers, or ocean waters in the United States, our insurance coverage ensures the safety and security of your boat or personal watercraft (PWC) investment. Whether you’re in search of a new policy or seeking to save money, we are here to assist you with a complimentary boat insurance quote.
When it comes to shopping for boat insurance, trust and experience are paramount. That’s why the GEICO Marine Insurance Company has partnered with BoatUS, the largest community of recreational boat owners in the nation. Since 1966, BoatUS has been dedicated to promoting safer, more affordable, and enjoyable boating experiences. Together, we share a deep passion for all things boating.
While we understand the importance of affordable boat insurance rates, we also prioritize exceptional customer service. Safeguard your investment with reliable boat insurance that you can rely on. Take the first step towards protecting your boat by obtaining your free boat insurance quote online today.