At a minimum, yachts and boats, need “liability” and comprehensive” insurance coverage. Liability protects you if your yacht or boat injures someone or damages property owned by someone else. Comprehensive insurance protects your property in case of vandalism, damage or destruction caused by theft or fire. Depending on the age and value of your investment, you may want to purchase collision insurance, which provides coverage for damage you cause to your own property.
The amount you pay for your yacht and boat coverage will depend on many factors including the value of the boat, the value of your boating equipment, the engine horsepower and whether it is in-board or out-board, and the length of the boat. You may purchase additional coverage for such things as Fuel and Other Spillage Liability, your boat trailer, medical payments, personal effects and liability to protect you from an uninsured boater. You may be eligible to receive lower rates if you hold a captain license or have completed safety courses provided by the U.S. Coast Guard Auxiliary or Power Squadron Courses. You may also receive discounts for having safety equipment on board or providing protective storage for your boat during non-use or off-season.
1. Is my boat insured if I have an auto or homeowner policy?
If you have a homeowner policy your boat might be covered but there are limitations. Automobile policies do not extend coverage to boats. Boat coverage can sometimes be increased by modifying a homeowner policy but a separate boat policy may be needed.