Marine Insurance
Larger and faster boats, yachts, and personal watercraft such as jet skis
and wave runners require a separate boat insurance policy. The size, type
and value of the craft and the water in which you use it factor into how
much you will pay for insurance coverage.
For physical loss or damage, coverage includes the hull, machinery, fittings,
furnishings and permanently attached equipment for an agreed value.
Boat insurance also covers:
- Bodily injury—for injuries caused to another person
- Property damage—for damage caused to someone else’s property
- Guest passenger liability—for any legal expenses incurred by someone
using the boat with the owner’s permission
- Medical payments—for injuries to the boat owner and other passengers
- Theft
Most companies offer liability limits starting at $15,000 and can be
increased to $300,000. Typical policies include deductibles of $250 for
property damage, $500 for theft and $1000 for medical payments. Higher
limits may be available. Additional coverage can be purchased for trailers
and other accessories. Boat owners may also consider purchasing an umbrella
liability policy which will provide additional protection for their boat,
home and car.
Boaters should also inquire about special equipment kept on the boat,
such as fishing gear, to make sure it is covered and verify that towing
coverage is included in the policy.
Boat owners should also inquire about discounts including:
- Diesel powered craft, which are less hazardous than gasoline powered
boats as they are less likely to explode
- Coast Guard approved fire extinguishers
- Ship-to-shore radios
- Two years of claims-free experience
- Multi-policies with the same insurer, such as a car, home or umbrella
policy
- Safety education courses, such as those offered by the Coast
Guard Auxiliary ( http://www.cgaux.org ), U.S. Power Squadrons ( http://www.usps.org
), or the American Red Cross ( http://www.redcross.org )
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