Boat Insurance Myths
Boat insurance myths are everywhere, and it’s dangerous to purchase a boat without knowing what’s true and what’s not regarding your insurance coverage. You might assume owning your boat means enjoying beautiful weather, taking part in water sports, and always maintaining a great sun kissed tan, and it does. It also means putting your financial future on the line each time you take your boat out of the garage. Without insurance, you could ruin your financial future in only a few moments. Before you purchase a boat insurance policy, protect your financial future by educating yourself on the most common boat insurance myths and the reality of each.
Myth Number One: You Don’t Need Insurance
If you’ve heard you don’t need boat insurance on a boat you own outright, you’re mistaken. While it’s true you might not be required by law in your state to hold insurance on a boat you don’t have a loan on, it’s not a good idea to forgo boat insurance. It might seem like a great way to save money, but it’s not going to save you anything if you’re involved in an accident with your boat. Someone has to pay for the damage to your boat if you hit someone else in it, damage someone’s property, or injure someone while you’re out having fun. If you can afford to pay for those things out of pocket and have no problem being the victim of a lawsuit, you don’t need boat insurance.
Myth Number Two: Your Insurance Covers You Everywhere
You’re not covered everywhere you go with just any boat insurance by Youi policy. In fact, you might not be covered while you’re in the water. One good example of this is a boat you travel with. If you take your boat from your home in Florida to a lake in Colorado for summer vacation, your policy might not cover you at that point. Boat insurance typically only covers boats in and around their home. If you live along the ocean, you’re covered there and in any body of water in the surrounding area. Once you take your boat far from home, you run the risk of lapsing your coverage. Check with your insurance company to find out if your boat is covered on vacation.
Boats in international waters aren’t covered unless you have a specific policy stating you have coverage there. It’s easy to find yourself there, too, if you live somewhere with nearby islands such as Miami and the Bahamas. It’s not a long drive by boat, and many boaters take their families to the islands on long weekends by boat to enjoy some fun in the sun. Without specific insurance, those boats aren’t covered.
Myth Number Three: Home Insurance Policies Cover Boats
There are some boat insurance policies that cover the cost of your boat while it’s on your property, but it’s not automatic with every homeowner’s insurance policy. If you think your boat is covered under your home policy, double-checking with the insurance company is wise. It’s also imperative to understand that even if your homeowner’s insurance policy covers your boat while it’s at home, it probably doesn’t cover much. If your boat is taken off the property, that coverage no longer applies. Before you rely on your home insurance to keep your boat safe and protected, know what your policy covers and how it works.
Considerations to Make
Even when you’re not in your boat, you need insurance. It’s not protected simply because it’s out of the water. Placing your boat on a trailer on the back of your truck to drive home means your boat is at risk on the road. Anyone can rear-end your boat, turn too soon and hit the boat from the side, or your boat could be improperly secured to the trailer and fall off causing a major accident. When your boat is at home in the garage, a tree could fall on it and destroy it. A natural disaster could strike at any time causing your boat damage.
Another big myth associated with boat insurance is the cost. It’s expensive to buy a boat, but it’s not all that expensive to insure one. Most boating accidents are few and far between, and they’re nowhere near as common as car accidents. There are also discounts available to anyone who has a boat and needs insurance, especially if you make the decision to bundle your boat, home, and car insurance into one package. Your insurance company can provide you with a quote.
Before you commit to insurance for your boat, call at least three different insurance providers to compare coverage and prices. The least expensive policy is not always the best, but the most expensive policy isn’t necessarily the one with the most coverage. Do your homework and choose the policy that best fits your budget. It’s important to understand how this works and how it protects you.