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Boat Insurance

What Is Boat Insurance?

Boat insurance is similar to automobile insurance except that it covers a boat rather than a vehicle. These policies typically insure the vessel against damage as well as liability. Anyone who owns a boat should purchase this additional insurance to protect against these unexpected financial issues.

Types of Coverage:

•Property Damage- This coverage repairs or replaces the boat in the case of a collision, sinking, vandalism or an accident. The parts of the boat that are covered varies per policy, but typically include the hull, sails, mechanical parts, electrical equipment and the boat trailer. In addition, the policy covers the cost to remove the boat if it sinks.
•Liability Coverage- Liability coverage pays damages, medical bills and legal fees if you cause damage to property or injury to a person. It covers damages that you cause to other boats as well as docks. It also covers you if someone on your boat is injured due to neglect on your part. In these cases, the policy pays for legal fees, court settlement costs and any medical payments to the individual.
•Uninsured Boaters Coverage- This coverage is similar to uninsured motorist coverage for an automobile. It covers the repair or damage to your boat by another boater who lacks insurance. It will also pay for any medical treatments that you require due to injury caused by an uninsured boater.
There are a variety of additional riders available depending on your needs. These riders can repair or replace fishing equipment, personal property and even reimburse you for interrupted sailing trips.

Major Benefits:

•While homeowners insurance offers some coverage for boats, there are many aspects that it doesn’t cover. Purchasing an additional insurance policy provides many added benefits.
•Provides on the water towing in the case of breakdown.
•Replaces personal effects in the case of sinking.
•Protects owners against fuel or chemical spill liability.