Do I Need Insurance for My Boat?

Summertime means beaches, boats, cookouts, and hydration. It is the season that calls for boat owners to take out their boats of all sizes out on the water. But before this happens, you want to make sure that your boat has proper boat insurance to cover any incidents that may/could take place.

Boat Insurance and Those That Need It

Boat insurance is required by 2 states: Arkansas and Utah (advice: check each state’s boat insurance requirements because many states have some sort of rule/regulation). Though you may live in a state where boat insurance is not required, you should still consider protecting your investment and financial security. Not having boat insurance does not relieve a boat owner of liability for an incident.

Boats may be covered under a homeowner’s insurance policy, but, keep in mind that coverage for certain incidents may not be extended under a homeowner’s policy. Having a separate boat insurance policy ensures more options for unique protection. A boat insurance policy can offer physical damage coverage, collision coverage, and medical payments coverage to protect your boat almost anywhere you go, land, water, and storage. 

An important note: a jet ski, jammer, or wave runner is not considered a “boat” therefore, boat insurance may not cover those personal watercrafts. It is important to discuss your options with you TIA insurance agent. You want to make sure that you and your boat are protected properly. 

Why Are There Restrictions for My Boat Under Homeowners Insurance?

Homeowners insurance protects dwelling, structures, personal property, and living expenses (living expenses due to damage/total loss of home). Something to consider, a liability incident by boat is likely not covered under a homeowner’s insurance policy. Liability under a homeowner’s policy looks like: a dog biting and injuring the neighbor, a friend slips on your icy doorstep, and/or someone trips and injures themselves on a lifted tile in your living room.

What if My Boat is My Home?

If a boat owner has a houseboat (a boat used as a home/ modified to be a residence), a boat insurance policy should definitely be purchased. A boat being home means that you should consider the following coverages- which are available with a boat insurance policy: 

– Personal effects coverage: furniture, clothes and other personal property

– Equipment coverage:  trailer, anchor, stereo, boat cover, fuel container, installed appliances, cabinets, or storage, first aid, flares, depth finder, and more. 

– Agreed Value: if your houseboat is ever totaled, this coverage allows you to know exactly how much you’ll be receiving for your total loss. 

Should I Keep my Boat Insured All Year?

Yes! Keep in mind that a homeowner’s insurance policy may not cover the damage to your boat. A lot can happen even if your boat is stored and protected; weather and theft are things to consider. Many homeowners’ policies, if they do cover boats, may only cover a certain amount. 

The best thing to do is contact your TIA insurance agent to get a personalized boat insurance quote and get answers to your boat insurance coverage questions. An agent can discuss the various options that work with your needs, state requirements, and your budget.