Do I Need Small Boat Insurance?

Summer is the season to enjoy outdoor adventures, including water-based activities. During these months, many people will take advantage of the hot weather and engage in watersports such as boating, sailing, and canoeing. One popular pastime amongst those participating in watersports is enjoying a day outside by taking their small boat out for a spin. Before buying such a vessel, however, it is imperative to determine whether or not it is covered under your insurance. To help, here are several key factors about small boat insurance to bear in mind.

Why Do You Need Small Boat Insurance? 

No matter how careful we are, unfortunately, accidents can occur. For example, there are risks of theft when it comes to your boat’s equipment, accessories, personal belongings, and onboard sports equipment. Furthermore, there is the possibility of infestation and vandalism. Based on the type of small boat you have, you might face mechanical issues as well, such as your engine not starting. These issues can become costly, depending on the extent of the damage or repairs required.

Small boat insurance can alleviate some financial stress and protect you against unforeseen accidents. You can enjoy your aquatic adventures safely wherever you are on the water. For example, liability coverage will help to protect you if you accidentally cause harm to someone. It will also cover you if you damage their property while operating your  watercraft.

What Does Small Boat Insurance Cover? 

Depending on your coverage, insurance on small boats can vary. Generally, however, the following will be included:   

Emergency Towing

Consider the following scenario: you are travelling on your small boat when suddenly your engine fails. Emergency towing coverage will pay for the costs of towing, fuel delivery, or any emergency services that may be required on the spot. Furthermore, some insurance companies may provide full reimbursement for hotels and temporary stays if you file a claim. 

Agreed Value Coverage

A boat is a significant investment. As a result, if an accident were to occur, many owners would understandably not want to receive less than the value of their property. To protect you against depreciation, we offer agreed value coverage for most types of vessels. This will ensure that in the event of a total loss, your boat will be covered for its full value. As the term implies, this value is mutually agreed upon when signing up. 

Replacement Parts

Replacing old boat parts with new ones can be expensive. Thankfully, your insurance may cover replacement parts without you having to worry about additional payments. 

What Factors will Determine the Price of Insurance? 

There are several factors that influence the final cost of the insurance for your small boat. These include the following, 

Type of Boat

When it comes to the cost of your insurance, the brand, size, and performance capabilities of your vessel should be taken into account. For example, faster boats are more expensive to insure as they are more likely to become damaged during an accident. An inboard engine can cost more than an outboard engine due to the extra maintenance costs associated with them. Used boats may be cheaper than new ones, but they could be more prone to damages if not properly maintained. Remember to inspect the type of boat you’re purchasing before making the investment. 

Your Boating Experience

Education and proper training on how to pilot and maintain your boat can help to keep insurance costs under control. The more experienced you are, especially when it comes to more complex vessels like sailboats, the more confident your insurance provider will be in your capabilities. This is because such a boater would pose a lower risk through demonstrated experience, a solid track record, and sound knowledge of best practices.

Insurance Claim History

If you have been in many boating accidents and made claims on your insurance, your rates will increase. It is common for insurance providers to conduct background checks, and that will include verifying whether you’ve filed claims through other insurance companies in the past. 

It is crucial that you insure your small boat before you take it out on the water. Reduce your financial stress and ensure that you are protected against unforeseen events. To learn more about our policy options or to discuss your coverage needs, reach out to us or request a quote today. We’re happy to assist!  

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