Getting Boat Insurance for a Small Watercraft

Pleasure boats don’t have to be yachts. After all, even the average canoe can be a watercraft that you and your family will love using. Anyone who enjoys being on the water can find a craft both to fit their needs and come at a price they can afford. a small boat in a body of water

However, regardless of the size or specifications of the vessel, it still needs insurance. Sometimes, it might come as part of your homeowners insurance, but in other cases you need boat insurance specifically. In all cases it’s there to protect both the value of the boat and your own security in the event of an unexpected loss.

Understanding Your Boat’s Insurance Needs

Every boat, large or small, has an insurable interest. Any monetary value the vessel represents could be snatched away from you as a result of numerous accidents, from collisions to onboard fires, theft, vandalism or other hazards. Damage could even occur when you have your boat parked on its trailer in your own driveway.

Any of these problems could cost you a lot of money. However, by having insurance on the vessel, you will receive financial assistance from your policy to help pay for the damage. Generally, larger, motorized vessels or sailboats need boat insurance, specifically. However, smaller boats—canoes, kayaks, jet skis or personal watercraft—often do not qualify for standard boat insurance, nor do they need it. These vessels usually do not have high enough values to necessitate such coverage.

Yet, though a vessel won’t qualify for boat insurance, that doesn’t mean it has no protection. Homeowners insurance might apply to these smaller vessels. The policy’s possessions coverage will pay for damaged belongings, and your small vessel will often qualify as one of these possessions.

Additionally, some insurers offer coverage called non-motorized boat insurance. This is a specific type of policy that applies to smaller boats but offers more specific coverage than home insurance.

Standard Boat Insurance

When you need to insure a larger boat, just contact your watercraft insurance agent. They can help you obtain the appropriate coverage, which often looks a lot like other motor vehicle insurance.

Though state laws generally don’t mandate insurance for boaters, boat insurance is still an essential benefit that exists for your protection. Coverage to add to your policy includes:

Collision Insurance: This coverage will pay for damage your boat sustains in a wreck. For example, if you hit another boat on the water, you can use this coverage to pay for the damage or repairs.
Comprehensive Insurance: More than just wrecks could damage your boat. Comprehensive insurance can pay for boat damage such instances as fire, theft, vandalism or weather damage.
Liability Insurance: If you cause a boat accident that harms others, this coverage can help you pay them for their losses.

You might also get coverage for medical payments, pollution cleanup, salvage costs and personal possessions lost with the vessel. Still, all policies will differ, since customers will need different benefits based on the unique characteristics of the vessel.

Homeowners Coverage for Small Vessels

Though you might not need a stand-alone boat insurance policy on a small vessel, you shouldn’t have to worry about not being able to insure these vessels. Smaller boats often qualify as possessions under your homeowners insurance, and as a result you might find your benefits solution within that policy.

Let’s say you store your canoe in the garage. One night, a fire might break out and burn the boat. You’ll want to replace the boat, so, if you make a homeowners insurance claim for the canoe, you might be able to get help with repairs or help paying for a new canoe.

However, do not assume that your homeowners insurance is a one-size-fits-all solution for your boat. Policies often limit coverage, and you must pay attention to your plan to know where you might need to buy increased benefits. Keep in mind:

You might have no home insurance coverage for a boat that sinks. Many policies cover only boat damage that occurs on your property. Your homeowners liability insurance will only have limited protection for injuries third parties sustain while using your boat.

You might not get a large payout from your homeowners insurance for a damaged watercraft. Most boat policies will only pay set amounts, usually no more than $1,000, for boat damage. Even if you have a boat worth more than that amount, you’ll only get that maximum coverage payout.

Non-Motorized Boat Insurance

If you want more coverage for your smaller boat than just what is offered by homeowners insurance, consider getting a non-motorized boat policy. Coverage will contain many of the standard policy elements of a standard boat policy, such as:

Liability insurance
Physical damage protection

Medical payments coverage
Equipment coverage (for items like motors added to the vessel)
Personal effects coverage

However, these benefits will be designed specifically for vessels that do not have motors attached, and they can often insure smaller boats that are used frequently.

The best way to determine how to insure your particular boat, speak to your insurance agent. They will understand the nuances of different plans, and be able to guide you to the coverage solution that best suits your needs.

Getting Boat Insurance for a Small Watercraft

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