With summer fast approaching, it will soon be time to get the boats out of storage and head to the lakes, or maybe it’s time to buy a new boat this season. Boats can represent a significant investment and it’s important to make sure that the investment is properly protected with the proper insurance.
You’ll need to buy registration from SGI for your boat trailer so that you can take it out on the road, but did you know that the basic licence insurance covers only your boat trailer? There is no coverage that extends from the SGI vehicle registration to the boat, the motor, or any contents inside your boat (fishing gear, water skies, life vests etc.).
In order to insure a boat, you can add the boat & motor on to your home insurance policy, or you can purchase a separate marine insurance policy. A marine policy is a specialized type of coverage designed specifically to insure the watercraft. So how do you know which method is best for you and your boat? Your broker can advise you as to which method is right for you, but generally speaking if your boat & motor value exceeds $25,000 you’ll probably find it most cost effective to purchase a marine policy.
Often time’s marine policies can offer different or broader coverage than your home insurance can for your boat & motor. Some marine policies have a disappearing deductible where the deductible reduces each year that you are claims free. Some marine policies also provide coverage for the contents of your boat as well often with a lower deductible than is available from your home insurance. Marine policies can also provide coverage for loss of use, if you need to rent a boat following an insured loss, or towing reimbursement, which can respond to towing costs if your boat is damaged on the water.
Also remember, to ensure that you obtain liability coverage for your boat. Regardless of whether you add it to your home or you buy a marine policy this important coverage will respond in the event you injure a third party through the operation of your boat.
A final consideration, buying a marine policy allows you to “protect” the claims free discount on your home policy, as a claim on a marine policy wont’ effect your homeowners insurance rates, and vice versa a claim on your homeowners policy wont’ effect the rates on your marine policy.