[gahooligan]

Since this is the first boat I've owned... Someone pls explain boat insurance. I think I understand about if I hit another boat or a dock, or if my boat gets stolen or sinks. But what else and how does it work? What if my outdrive hits something in the water? Or the motor blows up? Not sure what's covered or how it works or if I need it. I'm sure it's a good idea, I just don't understand what exactly I'm paying for and how it helps, etc.
Thanks all!

Matt in GA

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[Andy b]

It'll all be in the small print, you know that 100 page document you noticed that's now in a pile of papers somewhere...

Happy reading

[gahooligan]

I was hoping for a quick summary... 😁

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[mikeyt]

What Andy says does have a grain of truth to it. All boat insurance policies are not alike. I can give you a general answer at best w/out actually seeing the wording of your policy.

First off your policy likely has 1st party & 3rd party coverage. 1st party coverage means sudden & accidental damage that happens to your boat, your trailer and its boating related contents while 3rd party coverage (or 'liability') means damage you cause to the property of others. Both sections of the policy will have its own terms & conditions as well as applicable deductibles.

The 1st party coverage will usually be either "All Risks" or "Named Perils". All Risks covers everything except for the causes listed under "exclusions". Named Perils covers losses under a list of "Perils" that are described in your policy. Those perils are things like: fire, explosions, falling object, impact by aircraft or land vehicle, vandalism, theft, windstorm/hail etc. Obviously All Risk forms provide better coverage but cost more. In my opinion the cost difference is worth it though. Damages under 1st party coverage may be settled either under Replacement Cost or Actual Cash Value (depreciated value) depending again on what coverage you have bought. Again RCost is more expensive and may have some limitations with age (ie its only applicable to boats under 15 yrs old). Your policy may also have 'loss of use' coverage (just like car insurance) but its kind of useless unless you know where you can rent a similar boat.

The 3rd party (liability) coverage protects you in the event that you or someone else operating your boat accidentally causes damage to property owned by others or injury to another person. It does not cover intentional acts. Given the litigious nature in the USA, i would suggest you carry at least 1 million in liability coverage. Your policy will likely either cover your legal costs or arrange/pay for a lawyer if needed.

Again, this information is general but it should help you when asking your insurance broker specific questions. Hope it helps!

[gahooligan]

Thanks Mikey! So if I hit something in the water and damage the outdrive, is something like that covered usually?

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[mikeyt]

Originally Posted by gahooligan

Thanks Mikey! So if I hit something in the water and damage the outdrive, is something like that covered usually?

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Yes, unless you do it intentionally. If PaulF comes online he might be able to confirm this as i believe he works for an insurance brokerage. I'm not as familiar with US policy wordings as i am with Canadian ones but they are usually very similar.