Homeowners insurance provides little, if any, protection for operating a vessel.”
The risks of operating watercraft are similar to those of driving a car. They include running into other vessels, a swimmer, a diver, or a fixed object such as a dock, resulting in injury to others and damage to boats and property. In 2019, the U.S. Coast Guard reported a staggering 5.2 deaths per 100,000 registered vessels. In total, that year brought 4,168 accidents, 613 deaths, 2,559 injuries, and $55,000,000 in property damage. Not included in this report were liability settlements for personal injury, making the true cost of these accidents much more costly.
Top Five Boat Accident Types 2019
Percent of Total
Deaths & Injuries Collision with another vessel 26% 697 Collision with fixed object 12% 370 Grounding 10% 269 Flooding/Swamping 10% 169 Falls overboard 7% 311
opens in a new windowStatistics courtesy U.S. Coast Guard opens PDF file
What is Covered Under Standard Homeowners Insurance?
It isn’t fair to say that homeowners insurance provides no protection for watercraft liability. In truth, coverage exists but policies contain exclusions which result in zero coverage in most instances. Standard homeowners insurance provides liability protection for only the smallest of watercraft. Should a homeowner operate a boat and cause injury to someone else or damage their property, coverage only applies if the boat has an outboard motor less than 25 horsepower. Sailboats enjoy a little more leniency, but coverage applies only if the vessel is under 26 feet long.
Damage to the watercraft itself is even more limited. Most policies limit coverage to only $1,500, but not while the boat is on the water. Damage to the boat itself only applies while in storage. Coverages vary and other stipulations can exist, so check your policy or ask your agent.
Boat Insurance
So, unless your watercraft is a kayak, homeowners insurance provides little protection. The proper way to insure a boat or PWC is with a boat insurance policy. Boat insurance policies protect against liability related to operating the boat plus the hull itself including motors and special equipment. Coverage can include:
Liability
Liability coverage is the most valuable portion of a boat insurance policy. Piloting a boat without boat insurance is like driving a car without auto insurance. The operator can be held liable for injuries they cause and, without proper coverage, their personal assets are at risk. Liability coverage protects you in the event you accidentally injure someone or damage their property. Examples can include:
- Crashing into someone else’s boat, dock, or boat house
- Running over swimmers or divers
- The vessel breaking its moorings in a storm and wrecking other boats or property
- Towing a guest on skis or a tube and running them into another boat or obstruction
We suggest liability limits of $300,000, $500,000, $1,000,000, or more. Ensure your personal umbrella policy extends over your boat insurance as well.
Hull
Hull coverage on your boat insurance policy covers the vessel itself. It can also include items permanently attached to it, such as:
- Engines
- Rigging
- Cabinetry
- Radar
- Communications equipment
- GPS
- depth sounders
- Halon
- Recovery and removal of a wrecked craft
- Towing expense
Engines
The engines on a boat can prove more costly than the hull itself. Be sure the total cost of your investment is covered.
- Outboard
- Inboard
- Main
- Backup
- Linkage
- Steering
- Gauges
- Halon fire systems
Accessories
Accessories can include anything not considered a permanent part of the boat itself
- Furnishings
- Electronics
- Navigation
- Appliances
So, enjoy your time on the water, but leave your worry ashore. Contact Bankers Insurance for a boat insurance quote. Questions on boat insurance? Policies vary, so review it carefully or contact your Bankers Insurance agent for a boat insurance quote. We will help determine your risks and advise how to best cover them. Not a client of ours? Let us earn your business! Each of our clients is assigned a personal insurance agent and provided their email address as well as a phone number that rings right on their desk.
Boat Insurance Quote
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