Understanding the Fundamentals of Boat Insurance

Purchasing a boat can be a large expenditure. That’s why it’s important to protect your investment from any kind of damages or liabilities that may arise while owning it or using it. Because it’s not as common as home or auto insurance, it’s not surprising that many people have questions about what this insurance is and what it covers. Lines Insurance and Financial Services wants to help you understand the fundamentals of boat insurance so you can decide if it’s the right choice for you.

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What is It?

First things first — what is boat insurance? Put simply, this type of insurance coverage allows you to financially protect yourself from any kind of damage your boat may incur. It also safeguards you from potential injuries that people may experience while on your vessel. Typically, you’re able to select and purchase additional coverages to get the right amount of protection for you.

What Does it Cover?

The fundamentals of boat insurance coverage are similar to those of auto and home insurance — property damage liability, personal injury liability, and coverage for physical damages. Coverage can be purchased for many different types of boats, such as jet skis and WaveRunners, sailboats, fishing boats, and powerboats. 

If your boat hits another boat or someone else’s property, property damage liability insurance pays for these damages. This includes payment assistance for repairs to other boats. Sometimes accidents occur on the water that involve people instead of watercraft. That’s what personal injury liability coverage is for, and it helps pay for legal fees and settlements. Coverage for physical damages is similar to that of property damages, but it helps pay for boat repairs due to an accident, including those caused by fires, storms, or thefts.

Items and scenarios that are not typically covered include overuse and wear and tear, mold, manufacturer or factory defects, and damages caused by marine life.

Is it Required by Law?

The short answer to this question is, maybe. Where you live will depend on whether or not boat insurance is required by law. Not every state has boat insurance requirements. Keep in mind that if you financed your investment, you may be required to provide proof of coverage to the marina where your vessel is kept. Regardless of whether or not it is required, it’s certainly something you should research. It’s always a good idea to understand the best ways you can protect yourself, your property, and your passengers.

Choose Insurance You Can Trust

Should you decide to insure your watercraft after reading about the fundamentals of boat insurance, you’ll want to make sure you choose an insurance company you can trust. Lines Insurance and Financial Services has over 70 years of experience in providing quality insurance and real-life solutions to the residents of Maryland, Delaware, Pennsylvania, Virginia, and Washington, DC.

Contact one of our insurance agents today to find out more about our policies and how we can help you protect your investments.