A Short Guide to Boat Insurance

You probably don’t need coverage if you have a slow, small, inexpensive boat, otherwise, you should look into a boat insurance policy. Even if you have a homeowner’s insurance policy that covers your boat, it probably doesn’t offer much coverage. It’s common for a homeowner’s policy to only cover $1,000 or up to 10% of your home’s insured value. If you have a personal watercraft, jet boat, large sailboat, a yacht, or any type of boat that goes faster than 25 miles per hour, you should consider reaching out to The Smith Insurance Group, Inc., which serves the Sandy, UT area, to discuss your options for boat insurance.

What Does Boat Insurance Cover?

Liability coverage offers financial protection if your boat causes damages to others. According to the Insurance Information Institute, coverage amounts usually range from $15,000 to $300,000.

A boat insurance policy usually covers the following:

  • Destruction or damage that was caused by a fire, collision, lighting, vandalism, or theft.
  • Any type of damage caused to a boat or permanently attached equipment, such as oars, anchors, or water skis.
  • Expenses incurred when someone is hurt on your boat — this coverage is called bodily injury liability.
  • Property damage liability coverage pays for damages that were caused by your boat crashing into someone’s property.
  • If you let someone else driving your boat with your permission, guest passenger liability coverage pays for the legal expenses in the event of a crash.
  • Medical payment coverage pays medical costs for you and the passengers in your boat.

There are some things that a boat insurance policy won’t cover. Don’t expect your policy to pay for the following:

  • Regular wear and tear.
  • Defective machinery or machinery damage.
  • Damage caused by large creatures in the water, such as sharks.
  • Any damage caused by insects, mold, animals, or other creatures. However, some policies do offer coverage for damage caused by zebra mussels, but it’s rare.

For more information about creating a boat insurance policy that meets your needs, call The Smith Insurance Group, Inc. An insurance company serving the Sandy, UT area. We also provide policies for Idaho, Arizona, Nevada, and Montana.