This summer as more and more people use boats, it is important to know how to be safe on those boats and if the boat has adequate insurance. In the last year, the Coast Guard reported 4,900 accidents involving boats.
Boat insurance is an obvious choice for the 12 million boaters that are registered in the United States. However, boat insurance does not come in a standard package that fits everyone. This makes it harder to understand and can often be a reason why many do not own boater’s insurance.
Boater’s insurance falls under three categories: physical damage, bodily injury liability and property damage liability. The determining factor to how much coverage the boat will receive is dependent on the boat’s size, cost, type of boat, what the boat will be used for and where it will be used.
The owner of the boat is responsible for any injuries that occur on the boat and any damage from your boat. Personal liability will cover injuries for other people if the accident should occur on your boat. If a boat hits another boat then that is covered and will pay for repairs to the damaged party.
There are two types of ways to pay for boater’s insurance policy. An agreed value allows owners to insure their boat for the full value should a loss of property happen. This is a good option for those who do not wish to have the value of their boat depreciate over time. An actual cash policy pays only for the current value of the boat if a loss occurs.
Make sure that the boat insurance you buy has theft insurance, as well. When people move their boats from their driveway or on a trailer, there is a risk that the boat could be damaged. Boat insurance should cover this basic, but often overlooked, aspect. If the boat is parked at a marina, then it is usually safer since most marinas have security. However, natural disasters, fire or theft could still damage the boat in while stored in the marina. If the boat is stranded in the middle of a body of water then it will have to be towed. The Coast Guard no longer tows boat accidents that have no life-threatening injuries. Calling a towing company can be expensive. However, most boater’s insurance will cover the towing fee but check your policy to make sure.
Boating has becoming increasingly popular as the weather warms. Stay safe and have up-to-date boater’s insurance.
