A boat is a big investment, so naturally, you want to protect it as best as you can. That means having the right insurance policy. Before purchasing one, it helps to know the answers to some of the most important boat insurance FAQs.
1. Large Boats Need Their Own Policy
Large boats aren’t covered on homeowner’s insurance policies. The larger and more expensive your boat is, the more likely you are to need a separate policy. A good rule of thumb is to purchase a separate policy if it costs $10,000 or more.
2. Homeowner’s Insurance Provides Limited Coverage
Even if your boat can be put on your homeowner’s policy, your coverage will be limited. It may only cover about $1,000 and will only cover the damage done at home, which means you aren’t protected in the marina and likely aren’t protected while towing it.
3. Policies May Not Cover Personal Effects Fully
Most policies have limited coverage for personal effects. While you can add more coverage to your homeowner’s policy, that may require additional deductibles. The better idea is to add more coverage to a separate boating policy.
Purchase a policy that protects your investment and any personal effects that you take on board. WHen you have the right policy, it’ll be nothing but smooth sailing.