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October / November 2005 Issue

The ABCs Of Boat Insurance

2/6/2005 6:31:56 PM by

Recreational boating is an investment. The return on that investment is the closeness and priceless memories that your family enjoys when you spend time together on the water.

One of the best ways to protect your investment is to purchase boat insurance. Boat insurance is available for boats of all sizes and the right insurance coverage will save you a lot of heartache if an unfortunate incident occurs.

Boating insurance works much like automobile and homeowners insurance in that you can purchase basic coverage and then customize the insurance to fit to your individual needs.

According to Boats.com, the basic coverage that you should look for in a policy includes the following:

Liability to others, including loss of life, personal injury and damage to the property of others for which the owners may be held legally liable.

Medical payments for you, your family or guests who may be injured while boarding, leaving or aboard your boat.

Damages to your craft and related equipment.

Medical expenses for towed water-skiers.

Wreck removal.

In addition to the basic coverage above, there are a number of options you may want to consider before finalizing your coverage. These options include:

Damage in hauling or launching.

Fire, lightening, explosion.

Sinking and stranding.

Underwater damage.

Theft.

Much like insurance for your automobile, you are judged on a variety of criteria when your quote for watercraft insurance is being calculated. Each insurer will consider the following when pricing your policy:

Experience on the water (Many insurers will give you a discount if you have taken a certified boating education course).

Navigational waterways: where you'll be operating your craft; rivers versus lakes versus oceans.

Onboard navigational equipment.

Previous insurance claims.

Value of the craft.

Style of the craft.

Age of the craft.

Your automobile driving record.

How much insurance should you carry?

According to Boats.com, it's important to make sure that your policy covers injuries, theft or damages to your craft. If you're insuring your craft through your homeowners insurance policy, keep in mind that you'll typically only have limited coverage ($1,000 or 10 percent of property coverage) for theft and physical damages to your boat, its equipment, accessories, outboard motor or trailer.

Purchasing boating insurance is a prudent decision. If you do your homework and purchase the right policy to meet your needs, you can go boating with the confidence that your investment is protected for many years to come.

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For more information, visit www.familyfunonthewater.com for additional tips on boating finance, insurance and safety.