Scenarios to Consider When Getting Watercraft Insurance

If you're in a car accident while towing your boat, both the boat and trailer could sustain damage when they're not even in the water. In this type of situation, your policy will offer different coverage for the boat and its trailer.

Boat insurance property coverage generally protects your boat against damage (and other risks), and the protection applies to both on-water and on-land situations. If your boat is damaged in an auto accident, or if someone sideswipes the boat in a parking lot, your watercraft insurance policy's boat insurance property coverage will determine how the damage is covered.

Exactly how your policy covers the damage depends on what deductible you have and what kind of boat insurance property coverage the watercraft policy comes with. 

You'll need to pay the deductible's amount yourself. Then, the coverage will pay for repairs up to the depreciated value of your boat if the protection is actual cash value coverage. If the protection is agreed amount coverage, it will pay for repairs up to the amount you agree on when you purchase the policy.

To protect your trailer, you'll need to include a trailer-specific coverage in your watercraft insurance policy. This coverage isn't necessary if you don't ever take your boat out of the water, but it's a must-have if you do tow your boat and need to insure the trailer. Boat insurance property coverage doesn't extend to the trailer.

While boating is fun, the sport comes with inherent dangers — and some dangers are serious simply because you're on the water. Should you cause a major on-water accident, you might be held liable for any injuries sustained in the incident.

On-water accidents fall under the purview of your watercraft insurance’s liability coverage. If you cause an accident, this coverage helps with legal fees and settlements if an injured party brings a lawsuit against you.

When you choose what liability limits to carry within your policy, make sure you take into account how devastating injuries that occur in on-water accidents can be. Since people don't wear seatbelts on boats, accidents and the resulting injuries are sometimes especially bad. Moreover, often multiple people can be hurt in one accident.

If you're into watersports, then you need to think about more than just your boat. Waterskis, wakeboards, tubes, fishing poles, tackle boxes, and even tow ropes are easy targets for criminals when your boat is unattended at the dock. All someone needs to do is climb aboard, grab a loose accessory, and walk away unnoticed.

Even in a marina setting where other people might be present, a thief may still get away with one or more of your watersport accessories. Most boaters don't go out at night, so marinas are both dark and quiet. If someone stopped a thief during the day, the thief could claim that they owned the boat and were loading the accessories into their car.

The accessories that you leave on your boat but don't attach to the boat, you may need personal property coverage. Only some watercraft insurance policies offer this coverage, and those that do might provide it as an optional endorsement.

If you need a watercraft insurance policy, contact Coast Comp Insurance Agency.