Insuring Boats

Insuring a boat isn't difficult, but it usually takes an additional step beyond what you normally do for renters or auto insurance.  The reason?  Fewer companies are interested in recreational vehicles as a risk. 

Most insurance companies like to insure what I'll call "common stuff".  Common stuff is basically what the average person has, a suburban house, or apartment, a sedan, a minivan and then an engagement ring and pair of earrings.  Why do insurance companies like this?  They can accurately predict what their potential losses will be.  They have decades of data about car accidents, house fires and theft. When you get outside of this "common stuff" zone, insurance companies have to take a closer look. When asked to insure something outside of the ordinary, they are not as sure about the outcome.  That's why insuring a boat is different than insuring a Ford.

There are companies that specialize in insuring boats.  Progressive is one of them. If you own a television, you have probably seen the ads by now.  The process for applying is similar, but the information required is slightly different.  With most recreational vehicles companies want to know about engine size and top speed.  For boats they also want to know the exact water you'll be navigating and when. Boating along the Great Lakes typically has a lay-up period when the boat is expected to be out of the water.  Different companies have different requirements.

Coverages are slightly different too.  With a boat there is a hull value, there are also lots of options for things like trailers, personal effects and towing.  Deductibles can be for a set dollar amount, or it can by for a percentage of the hull value.

Depending on the length of the boat you may have to prove that you have boating experience.  There are different designations that can be achieved that could result in a credit and there are certain lengths and engine sizes that may make you ineligible depending on your experience.

Not all boats need to be insured separately.  If it's simple, like a row boat or canoe, then the liability may be picked up under your homeowners insurance. This differs from one policy to another, so check with an agent on your specific situation.

For more information please check out this link to the Insurance Information Institute.
http://www.iii.org/articles/boat-insurance.html

If you have questions for me, please give me a call or shoot me an email.  My information can be found under the "Contact Us" tab up above.

Cheers.