The
circle of safety: How to protect yourself and your
family if you own a boat!
By
RCI Insurance Group
What
you’ll discover in this report:
Surprising
secrets about what is and what is NOT covered in a
standard Homeowner’s Policy for your boat!
Clear up the
common confusion about the different kinds of “watercraft”
insurance...most owners don’t know the answer!
How to save money
on boat insurance...
A special kind of
insurance you may need to get...depending on what you do
with your boat...
Insurance
jargon demystified! What are you really
getting? Find out here..
They are called
pleasure boats or pleasure crafts, but, let’s face
it, sometimes they’re a “pain.” They
are an expensive habit, to say the least -- and
potential danger comes with the pleasure.
They
are, after your house(s) and maybe your car(s),
probably your most valued assets. You can choose to
own and operate a boat, yacht or Jet Ski without
insurance (although some marinas and yacht clubs won’t
let you dock your craft unless you have coverage).
That wouldn’t be a very smart choice, however.
*
Note. If you have a homeowner’s insurance
policy, you may have some coverage for your
watercraft, but it is very, very minimal. A typical
homeowners policy will pay as much as $1,000 to repair
damage to your boat, but -- guess what? -- That damage
has to occur while the boat is at your home. This is
not exactly the kind of damage coverage you need. In
addition, there may be some liability coverage. Some,
but hardly enough.
You
can gamble and not buy insurance for your watercraft,
but it is a big gamble. You’re risking not only
losing or severely damaging the boat in an accident
without compensation, but possibly your other assets
if your boat causes damage and/or injuries to other
boats and/or boaters.
Lots of Options...How to
Choose
Perhaps
more than any kind of insurance, it really pays to
shop around for coverage for your watercraft.
Depending on the type of craft you have, how fast it
moves, where you operate it, etc., you could find that
many policies are prohibitively expensive, or don’t
provide the coverage you need.
First,
you need to know that there are three types of “boats.”
§
Anything
less than 16 feet long is usually called “personal
watercraft” by insurers. This includes Jet Skis,
Waverunners, Tigersharks, Wet Bikes and Sea Dog “cycle”
style models, as well as Jazz and Rage “mini boats.”
§ “Boats”
are 16 feet to 25 feet, 11 inches.
§ Anything
at least 26 feet long is classified as a “yacht.”
You
will find that insurers have varying appetites for
these types of watercraft. For this insurance, smaller
is often not better. In fact, personal watercraft
tends to be more accident-prone than most kinds of
boats and yachts.
Some
insurers won’t provide coverage for your personal
watercraft at all or won’t unless it is part
of a larger policy. For some owners of personal
watercraft, an insurer that specializes in this type
of risk will be the best bet. Your policy should
include coverage for injuries to you and your
passengers, the craft itself, liability (for damage
and injuries to other crafts and people) and theft.
*
Note. If you use your watercraft for
water-skiing, you need to get coverage for this
exposure as well. (It usually needs to be added to a
standard policy.) You can also get coverage for the
trailer(s) you use to transport the watercraft.
Insurance for Powerboats,
Sailboats
In
the insurance world, “boats” are usually smaller
powerboats and sailboats. Standard policies for boats
cover damage to the craft, usually on what is called
an “all-risk” basis. In this case, all-risk
includes damage caused by fire, lightning, theft,
vandalism and windstorms.
The
coverage is usually available for the boat itself,
outboard motor(s), the boat’s trailer and personal
property on the craft that is part of the normal
operation of the vessel. Some insurers offer separate
coverage for fishing equipment, cell phones and
computers that are aboard the boat.
The
standard boat policy also provides liability coverage,
which is usually offered in increments of $100,000 to
as much as $1 million. Therefore, it is similar to
auto insurance liability in terms of what is
available.
Most
standard policies also cover medical expenses incurred
by you, your family and any other passengers on the
boat. Some policies also provide coverage for injuries
caused by uninsured boaters or by those boaters who
don’t have enough insurance. If this sounds like
uninsured motorist coverage in an auto insurance
policy, it basically serves the same purpose.
*
Tip. If you’re shopping for boat
insurance, it’s wise to consider only those policies
that offer this coverage. Discuss this with your
agent.
Insurance for Yachts
If
your watercraft is 26 feet or longer, you will need to
buy yacht insurance, which provides basically the same
coverage as boat insurance, but the terms are
different. Under a boat policy, coverage for damage to
the craft is called “physical damage.”
Under
a yacht policy, the term is “hull.” Liability
coverage under a yacht policy carries the name “property
and indemnity,” which insurance people often
abbreviate to P&I. As with boat liability
coverage, P&I is available in increments of
$100,000. Depending on the size of your craft, you can
buy P&I limits from $2 million to as much as $50
million.
