Q & A
Is boat insurance required by law?
Unlike auto insurance, boat insurance isn’t legally required in most states. In Texas it is not legally required, however, many marinas and lenders require proof of insurance before allowing you to dock your boat or financing your purchase. Even if it’s not required, boat insurance is strongly recommended to protect you from liability and financial loss.
Does boat insurance cover my boat while it’s being towed on a trailer?
Standard hull coverage typically protects your boat while it’s being trailered. However, the trailer itself usually requires separate coverage, which can often be added as an endorsement to your boat policy. Your auto insurance may also provide some coverage for the trailer while it’s attached to your vehicle.
Is towing coverage worth adding to my boat insurance?
Absolutely. Towing coverage typically costs less than $50 per year but can save you several hundred dollars or more on a single on-water rescue. It covers emergency services like towing to a repair facility, fuel delivery, jump starts, and soft un-groundings, making it one of the best values in boat insurance. Please ask your agent for a detail description of your towing coverage with your carrier.
How much liability coverage do I really need for my boat?
Most experts recommend at least $300,000 in liability coverage, with $500,000 to $1,000,000 being ideal for larger boats or frequent use in busy waters. The cost difference between coverage levels is relatively small compared to the financial protection you gain, especially considering that a single serious accident could result in medical bills and property damage exceeding basic coverage limits.
What is hull insurance Covarage in a boat insurance policy?
Hull insurance is another term for boat, comprehensive and collision coverage, also known as physical damage coverage. The term marine hull insurance specifically refers to boats and other watercraft.
Will my boat insurance cover damage from a hurricane?
Yes, if you have comprehensive coverage. As discuss above in addition, hull coverage typically covers storm damage, including hurricanes, though you’ll need to check your specific policy for any exclusions or special conditions. Some policies require you to move your boat to a safe location before a named storm, or they may have higher deductibles for hurricane-related claims in coastal areas.
Do you need boat insurance if you have a homeowners policy?
Short answer is yes. Why? Most homeowners insurance policies will cover damage to your boat, but only for a limited dollar amount. These policies don’t provide liability coverage. You will need a separate boat policy to cover a more expensive boat, provide for medical payments, or pay for damage or injuries to others.
What kind of boat polices can I purchase?
There are three kinds of boat polices:
Replacement cost: Pays to repair or replace your boat.
- Actual cash value: Pays to repair or replace your boat minus depreciation. For example, a new boat in 2010 might cost $40,000, but today it’s worth $25,000. An actual cash value policy would pay up to $25,000 to repair or replace this boat.
- Agreed amount value: Pays to repair or replace your boat up to a set value in your policy.
- Replacement cost: Pays to repair or replace your boat.
Understand your policy:
- There may be a layup provision that suspends coverage during the months when the boat is not in use.
- There may be limits on your policy for ocean use.
It’s important that you talk to your agent to make sure your coverage fits your needs.
Many insurance companies that sell homeowners insurance can also sell you a policy for your boat. At Hub Insurance Agency we have options from different Carriers to meet your watercraft/boat insurance needs. Please make sure to ask your agent about these options.