Boat Insurance Made Easy

Boat Insurance Coverage In Texas

Did you know that some boat insurance companies provide limited coverage for property damage for small boats such as canoes and small sailboats or small powerboats with less than 25 mile per hour horsepower under a homeowners or renters insurance policy if they are located on your property?

Coverage can be $1,000 and can include such things as the boat, motor and trailer combined. Liability coverage is typically not included, but it may be added as an endorsement (additional insurance) to a homeowners policy.

Check with your insurance representative to find out if your boat is covered and what the limits of coverage are.

Boat Insurance Policy

Larger and faster boats such as fishing boats with big engines, speedboats, jet boats, ski boats, yachts, and personal watercraft such as jet-skis, wave-runners, and sea-doos require a separate ‘Boat Insurance Policy’.

The size, type and value of the craft and the water in which you use it factor into how much you will pay for insurance coverage, (what your ‘Premium’ will be to cover your craft).

For Physical Loss or Damage, coverage includes the hull, machinery, fittings, furnishings and permanently attached equipment as part of either an actual cash value policy or on an agreed amount value basis. These policies also provide broader protection than a homeowners policy. But there are distinct differences between the two types of policies.

Actual Cash Value policies pay for replacement costs less depreciation (the decrease in value of your boat due to age, wear and tear and other factors) at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the vessel’s approximate market value. Partial losses are settled by taking the total cost of the repair less a percentage for depreciation.

Agreed Amount Value basis policies mean that you and your insurer have agreed on the value of your vessel and in the event of a total loss you will be paid that amount. Agreed Amount Value policies also replace items for new in the event of a partial loss, without any deduction for depreciation.

Boat insurance can also cover:

• Bodily injury (for injuries caused to another person)
• Property damage (for damage caused to someone else’s property)
• Guest passenger liability (for any legal expenses incurred by someone using the boat with the owner’s permission)
• Medical payments (for injuries to the boat owner and other passengers) Theft

Most companies offer liability limits that start at $30,000 and can be increased to $300,000. Typical policies include deductibles (your out-of-pocket expense before an insurance company pays for a claim). Deductibles can range from $250 to $1,000 in a typical policy for property damage and/or theft for example.

Medical payments for injuries (as an example) are covered through Medical Pay or PIP (Persona Injury Protection) Coverages. Be sure and review these important coverages with your agent.

Higher limits of boat insurance coverage may be available. Additional coverage can be purchased for trailers and other accessories. Boat owners may also consider purchasing an umbrella liability policy that will provide additional liability protection for their boat, home and cars combined. Review these important factors with your agent.

Special Note: Boaters should also inquire about special equipment kept on the boat, such as fishing gear, depth finder and trawling motor to make sure it is covered and verify that towing coverage is included in the policy as well. Review these important factors with your agent.

Boat owners should also inquire about discounts for the following:

• Two years of claims-free experience
• Multi-policies with the same insurer, such as a car, home or umbrella policy
• Safety education courses, such as those offered by the Coast Guard Auxiliary, U.S. Power Squadrons, or the American Red Cross.

Boat Safety

There are thousands of recreational boating accidents per year. Contributing factors to these accidents include traveling too fast for water or weather conditions, driving under the influence of drugs or alcohol, failing to follow boating rules and regulations, carelessness and inexperience.

To prevent boating accidents, we offer these safety suggestions:

Care and protection of your Craft

1. Check weather forecasts before heading out.
2. Let someone know where you’re going and when you expect to return.
3. Check engine, fuel, electrical and steering systems, especially for exhaust-system leaks.
4. Carry one or more fire extinguishers, matched to the size and type of your boat. Keep them readily accessible and in condition for immediate use.
5. Equip the vessel with required navigation lights and with a whistle, horn or bell.
6. Consider additional safety devices, such as a paddle or oars, a first-aid kit, a supply of fresh water, a tool kit and spare parts, a flashlight, flares and a radio.

Care and protection of Crew and Guests

1. Make sure that every person on board the boat wears a Life-Jacket.
2. Know and obey marine traffic laws, the “Rules-of-the-Road.” Learn various distress signals.
3. Keep an alert lookout for other watercraft, swimmers, floating debris and shallow waters.
4. Pay attention to loading. Don’t overload; distribute the load evenly; don’t stand up or shift weight suddenly in a small boat; and don’t permit riding on the bow, seatbacks or gunwales.
5. Don’t operate a boat while under the influence of alcohol or drugs.

Skippers can obtain free advice and boating-safety courses from the U.S. Coast Guard Auxiliary. Upon request, the auxiliary will conduct a Courtesy Marine Examination (CME) on your boat, checking electrical and safety equipment and fuel hoses. Boats meeting safety standards are awarded the CME decal “Seal of Safety.”

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