A common question for boat owners is, do I really need boat insurance? After all, most home insurance policies provide coverage for boats.
It’s important to note that home insurance has very limited coverage for your boat. Most home insurance policies offer $10,000 in damage coverage for your boat while it is being kept on your property. This does not cover liability or injury incidents that may occur out on the water. If you have a larger or more expensive boat, home insurance likely won’t be able to provide compensation for loss or damages to your boat.
What Boat Insurance Covers
Boat insurance offers higher limits and different types of coverage not available under your home insurance policy. This includes:
Physical damage to the boat due to fire, wind, hail, theft, vandalism and other incidents is covered under boat insurance.
Liability insurance covers bodily injury and property damage the driver may cause while operating the insured boat.
Guest passenger liability covers bodily injury and property damage a guest driver may cause while operating the insured boat with permission.
Personal items can be covered from damage or loss if left on the boat.
You can also purchase additional coverage for customized parts to your boat as well as trailer coverage, which covers damage to your boat trailer.
Is Boat Insurance Worth the Price?
Many people worry about adding yet another insurance bill to their plate. Thankfully, boat insurance is relatively inexpensive. On average, boat owners pay around $300 to $500 a year, which is only about $25 to $41.66 a month.
It’s helpful to compare this with costs you could face without insurance. A single accident can cost thousands or even millions of dollars in property damages, medical expenses and possible lawsuits. Boat insurance can help with these expenses so you don’t have to come up with the money out of pocket or go into debt trying to recover after an accident.
Is Boat Insurance Required?
In the state of Utah, boat insurance is required. The minimum liability coverage required is as follows:
$25,000/$50,000 bodily injury/death
$15,000 property damage
$65,000 of combines liability coverage per incident
Boats with engines less than 50 horsepower and all airboats are not required to have the above coverage.