Why Do I Need Boat Insurance?

July 28, 2017


Taking your boat out on the water is a great way to enjoy the days of summer. But before to head out, make sure your boat is properly insured and includes all the coverage you’re looking for.

Is my boat covered under my home or auto policies?

In most cases, no. Since your boat has nothing to do with your home or vehicles, it’s probably not covered under either of these policies. The only exception is that some home insurance policies cover small boats that have a tiny engine or no engine at all, but that’s about it.

If your boat costs thousands of dollars, there’s a good chance you’re going to need to purchase a separate policy for your boat.

How is boat insurance different than other policies?

Boat insurance is like a combination of homeowners insurance and auto insurance.

Similarly to homeowners insurance, boat insurance coverage includes injuries that may occur on your boat, as well as replacement costs if it’s damaged. Like your auto insurance, your policy should protect you if your boat damages property or injures someone not on your boat. You can also purchase coverage that includes vandalism, flood, fire and other items.

One provision that is included with boat insurance that isn’t included with home or auto policies, is the ability to suspend coverage for specific periods of time your boat is not being used.

What’s the difference between ‘agreed value’ and ‘market value’?

Since your boat can quickly decrease in value, Mountaineer Insurance gives you options that include “agreed value” and “market value” if your boat is totaled.

With agreed value, you and your Mountaineer Insurance agent agree on a value of the boat. If your boat is totaled, you will be paid up to this amount. If your policy covers the market value, you will receive the amount of money needed to replace your boat’s current value.

If you’re going to have your boat for a long period of time, you may want to consider agree value covered versus market value coverage.

Is my boat insured everywhere?

If you’re a first-time boat owner, you may be unaware that there are navigational limits on where your boat is insured. For this reason, check your policy to make sure you’re covered in the area that you want to travel to and explore.

If you have questions about which policy is best for you or want to update your policy, contact Mountaineer Insurance by calling 304-338-2902 or send us a message.