The requirements for boat insurance varies depending on the state. While you may not be required to carry the insurance, you definitely need it. It is unwise not to have this insurance because you never know when an accident can happen. This could mean damage to your boat, injuries, and unfortunately, deaths. Always be prepared just in case.
Why do you need boat insurance?
Unfortunately, there are many people under the false belief that homeowners insurance will cover boats. This is not true. Your boat has nothing to do with your house and vise-versa. And even if you could get this type of insurance under a homeowner’s policy, it wouldn’t be nearly enough to cover damages if you have an accident.
In most case, boating insurance acts just like auto insurance, in that you will need to have at least liability to cover the other person’s property and bills if you are at fault. Remember, boats come in all sizes and prices. The bigger and more expensive the boat, the bigger and more expensive policy you will probably need to get.
Is your boat covered both in the water and out?
Actually, it is. However, say your boat is attached to your vehicle and you are in an accident. The damages will be covered by the auto policy. And the terms of the auto policy is what will be given deference. Many insurers will suggest you get an umbrella policy. The umbrella policy will give more protection against catastrophic damage. The liability limits will run $300,000 to $500,000.
So, if you own a boat, don’t take chances. The very time you think you don’t need a boat policy is when an accident occurs. And if you are liable for someone else’s boat damage, injuries or even deaths, the law suits will put you in the poor house. So protect yourself and your assets.