Marine Insurance Guide for New Boat Owners
Whether cruising the coastline, fishing in serene lakes, or embarking on a sailing expedition, having the right insurance is essential to protect your investment and ensure peace of mind. At Brashears and Newendorp Insurance, we understand the unique needs of boat owners and offer tailored marine insurance solutions to safeguard your vessel and maritime adventures. In this guide, we cover essential information for new boat owners about marine insurance, including types of coverage, factors affecting premiums, and reasons to insure your boat. Let’s dive in!
Understanding Marine Insurance
Marine insurance is a specialized coverage designed to protect boats, yachts, and other watercraft against various risks. It encompasses different types of policies that can be customized to meet the specific needs of boat owners. Here are some critical aspects of marine insurance:
1. Hull Insurance: This covers physical damage to your boat, including the hull, machinery, and equipment. Whether your boat is damaged in an accident, storm, or due to vandalism, hull insurance ensures that repair or replacement costs are covered.
2. Protection and Indemnity + Excess Liability: Accidents happen, even on the water. Protection and Indemnity + Excess Liability coverage protects you if you're held responsible for injuries to others or damage to their property. This is crucial for covering legal fees, medical expenses, and repair costs.
3. Personal Property Coverage: Your boat isn't just the vessel itself; it's also the personal belongings you bring on board. This coverage protects items such as fishing gear and electronics and protects personal effects against theft, loss, or damage.
4. Pollution Coverage: Remove all oil and fuel from vessels, use booms in affected areas, and sometimes employ divers. The policy covers fines and penalties levied by local authorities, with coverage limits ranging from $500,000 to $5,000,000.
Do You Have to Buy Insurance for a Boat?
There are a few reasons why you may need to buy insurance for your boat:
Your State Requires Boat Insurance
Just like auto insurance, boat insurance requirements vary from state to state. Arkansas, Utah, and Hawaii are the only three states that have boat insurance requirements:
Arkansas: Requires liability insurance with a minimum of $50,000 in coverage for all boats with an engine of 50 horsepower (HP) or more.
Utah: Requires insurance covering bodily injury, death, and property damage for all boats with an engine greater or equal to 50 HP. Utah’s policy limits include $25,000/$50,000 for bodily injury/death and $15,000 for property damage or a $65,000 combined minimum per accident.
Hawaii: Requires insurance for boats parked in the Department of Land and Natural Resources Division of Boating and Ocean Recreation (DOBOR) facilities, including harbors and offshore moorings. Boats matching this criterion must have at least $500,000 in liability coverage, and policies must name the State of Hawaii, DOBOR, as an “additional insured” or “additional interest.” Policies in Hawaii should cover salvage costs, damage to docks, pollution containment, and wreck removals.
Your Marina Requires Boat Insurance
If you live in a state that doesn’t require boat insurance, that doesn’t necessarily mean you don’t have to get insurance for your boat. Many marinas and ports have their regulations and may require you to have boat insurance to use their facility. If you plan on docking or storing your boat at a marina, you should consider purchasing insurance for your boat.
You Are Financing Your Boat
If you are financing the purchase of your new boat, the bank may require you to show proof of insurance. Your insurance policy will likely cover the total value of the ship. The bank may also set minimum requirements for specific types of coverage. Check with a lender about the coverage requirements. When obtaining an insurance policy on a boat you are financing, you must list the bank as a lienholder on the insurance policy. This will ensure the bank is included as a co-payee in case of a loss payout.
Should I Insure My Boat if It’s Not Required?
Even if boat insurance is not required by your state, marina, or financial institution, consider purchasing some type of boat insurance. Boat insurance is meant to protect you and can help if your vessel is damaged or caused harm to another person with or on your boat.
Boat Insurance Covers:
Damages to the boat or personal property on your boat.
Liability coverage in the event of a boating accident and harm caused to others.
Medical coverage is available if you or a guest is injured on the boat.
Uninsured boat owners’ coverage if your boat is damaged or anyone is injured by another uninsured boat.
Towing costs.
Boat damage can be costly if damaged while docked at a marina or during an accident. Although there is a deductible, boat insurance can help save you from having to pay the total cost of the damage.
At Brashears and Newendorp Insurance, we are committed to providing personalized marine insurance solutions that meet the unique needs of boat owners. Our expertise and access to top-rated carriers allow us to offer comprehensive coverage at competitive rates. We take the time to understand your specific requirements and tailor our policies to ensure you have the protection you need. Let us help you navigate the waters safely and securely.