Boat Coverage: Homeowners Policy or Boat Insurance?

Like most things in life, the right answer always depends on variables. Should you have insurance on your boat? Most definitely. But the real question is, should you purchase a separate insurance policy, or is your boat sufficiently covered under your homeowners insurance policy?

Ultimately, you'll end up having to talk to your insurance agent at some point, but read on below to prepare yourself to answer some inevitable questions.

Check Your Home Insurance Policy First

One important thing to look at is your existing homeowners insurance policy. Not every insurance company includes watercraft coverage in a standard policy, but most do. Your homeowners liability coverage listed on your declarations page will extend to your boat, but the boat itself will only be covered for $1,000–$1,500.

Another caveat is that your coverage is also restricted to the size of the boat and its motor when it comes to liability. If your boat is over 26 feet long or has more than 25 horsepower then it actually won't be covered without buying a separate endorsement that opens up eligibility.

Boat Insurance Offers Unparalleled Comprehensive Coverage

A true boat insurance policy can cover you for numerous things, and while endorsing your homeowners policy will work for smaller boats it won't be nearly as comprehensive as a full policy.

Here is a quick list of coverage options you'll be able to take advantage of:

• Agreed value - the agreed value of your boat is a value you submit to the insurance company and the up-to amount they agree to pay in the event of a claim. This can vary based on the type, condition, and size of the boat.
• Disappearing deductibles - an option that shrinks your deductible over the course of your policy until it reaches zero.
• Coastal navigation - insures that your boat is covered no matter where you happen to be (varies from company to company)
• Roadside assistance - this is a big one because your homeowners policy won't protect your boat while it's out on the road. Having a boat insurance policy not only protects your boat; it also protects the trailer.
• Personal content coverage - personal property on the boat will be covered based on the indicated value of items such as clothing, cameras, fishing equipment, and other items.

If you have a small fishing boat that might only seat a couple of people, then your homeowners insurance policy will be more than sufficient to cover you for all of your needs. But if you spend a lot of time out on the water and have a mid-sized boat, then chances are you'll want to spend a bit more making sure you're sufficiently covered with a full boat insurance policy. For more information about boat insurance, visit The Flechsig Insurance Agency Inc.