Boat owners are in a predicament about buying boat insurance for their boats, especially when it is only in use a few months a year. Most boat owners often cancel their insurance after the first year deeming it a waste of money. The reality is that boat insurance can save money in the long run, especially in unclear circumstances. Here are seven key reasons that you must have boat insurance.
1. It’s the Regulation
Unlike jet skis and canoes, boats are expensive investments, and most people need to use financing to afford them. The financiers require insurance all year since they have invested in the boat monetarily to protect the acquisition. During off-seasons, most docking places also need the boats insured to dock into the various facilities.
2. Accidents and Human Risk
In open seas, boat insurance can seem like a waste since there is nothing but vast amounts of water surrounding the boat with no danger in sight. However, when the boat is on land, it is at risk of theft, fires, and even vandalism which can happen at any time, especially off-season. With boatyards often left unattended during the off-season, particularly winter season, the stakes are well too real and may lead to astronomical repair costs, which insurance can cover entirely.
3. Mother Nature Risk
In the off-season, when the boats are in storage, mother nature can wreak havoc and do irreparable damage to the boat. With hurricanes more common, flooding can occur, leading to debris carried to the area damaging the boat. Lightning can also cause fires resulting in a total loss of the asset. Boat insurance will ensure damage to the investment is covered.
4. Limited Homeowner Coverage
The homeowner’s insurance policy slightly covers many homeowners who have boats. However, the payment offered is usually superficial and will not even cover 10% value. Without paying out of pocket for repairs, the investment will likely disappear. Boat insurance will ensure that the boat is covered in collisions damage and property liability damage.
5. Comprehensive Cover
The unpredictable may happen, and collisions can occur. Boat insurance will cover the cost of repairs and replacement if need be. Still, if the crash causes damage to another boat, the insurance company is liable to pay for the cost of repairs, saving the owner from making the payments.
6. Bodily Injury
In adverse weather in a boat, bodily harm can occur, and the vessel can cause injury to the owner and another person. Depending on the health insurance cover, some clauses may make the insurers deny the claim. Boat insurance will include bodily harm liability and cover all costs relating to the boat, giving the owner peace of mind during recovery.
7. Cost Effective
Every time a boat owner cancels their insurance to save money and have to start it again, they end up losing more money as the insurance costs rise. Still, with insurance companies often offering deductibles to boat owners who have no claims, most will end up saving money on loyalty discounts.
When shopping for boat insurance, be sure to compare several insurances to get the best deals. Read the fine print details to know all information on the boat to make sure that there are no clauses that will be detrimental in the future when signing up for a claim.