Watercraft insurance policies protect any kind of boat, yacht, sailboat or jet ski. Coverage is divided into sections, very similar to the Personal Auto policy. The most important sections of the Watercraft insurance policies are:
- Liability (Protection & Indemnity)
- Hull & Equipment
- Uninsured Boaters
Liability (Protection & Indemnity)
The Insuring Agreement provides coverage for bodily injury or property damage that insured becomes legally obligated to pay as a result of an occurrence from the ownership, maintenance or use of an insured boat (or watercraft).
Some policies allow the liability coverage to “follow the insured”, meaning coverage is provided if you are operating another person’s boat with their permission.
- Bodily injury to family members or the named insured
- Property damage to family members of the named insured
- Liability assumed under contract or breach of contract, however coverage is provided for legal liability assumed under boat slip or storage contracts
- Bodily injury or property damage resulting from transportation of the boat or trailer on land (this should be covered under your Personal Auto policy)
- Bodily injury or property damage arising from parasailing or any type of device designed to make a person airborne from the boat
- Intentional acts
- Punitive damages
- Pollution – including cost of cleanup or resulting bodily injury or property damage (many policies provide alternative coverage within the policy for fuel spillage cleanup)
- Communicable disease transmission
- Workers compensation or other similar laws/acts
Hull & Equipment
Coverage for property damage to an insured boat, its engines and items from an accidental cause. Insurance applies as shown in the Declarations page, for the boat including its hull, machinery, outboard motors, sails, spans, furniture and boating equipment regularly carried aboard, as well as a dinghy and its outboard engine. Personal items include scuba and fishing gear and there is often coverage provided, as shown separately in the Declarations.
- Wear and tear or deterioration, mechanical breakdown (exception for consequential damage available in some policies)
- Manufacturer defects or failures (exceptions may be available for consequential damage)
- Loss resulting from incomplete or faulty repairs
- Liability for wages or provisions due to a Captain or Crew
- Intentional damage or criminal acts
This coverage is very similar to that provided under the Personal Auto policy.
Agreed Value vs Actual Cash Value
It is preferable to insure your boat on Agreed Value basis under your Hull & Equipment line. Actual Cash Value means the insurer will depreciate your claim, whereas Agreed Value will provide coverage for the limit you have stated in the policy declarations.
Watercraft Insurance, clearly, won’t protect you from every type of exposure you may face. As a result, there are other types of insurance designed to meet your entire needs.
Here are a few:
>> LEARN ABOUT OTHER PERSONAL INSURANCE SOLUTIONS