You're out on the water in your beloved boat without a care in the world, until suddenly you realise you don't have boat insurance.
A million things cross your mind. Do you really need boat insurance? Does your home insurance cover your boat? What does boat insurance even cover you for? The short answer is if you have a watercraft, you need some level of cover. The type of boat insurance that you require will depend on several factors, such as where you store the boat and what you're using it for.
If you want peace of mind on and off the water, follow this quick guide for determining what kind of boat insurance you may need.
Does my home insurance cover my boat?
Although quite rare, some home insurance policies may offer a minimal amount of coverage for small boats (often ones without engines). You should check your PDS or call your insurer to find out whether or not you have any boat coverage under your existing home insurance policy. Once again, this situation is unusual and even if you do have some coverage, it's likely only for damage that occurs while the boat is on your property. The type of damage will be limited, and you will not be insured on the water. Your safest bet will always be to take out a separate policy for your boat.
How much boat insurance do I need?
Only you can really decide how much coverage you need. Factors like how you use your boat, the value of it and your budget will help you decide which policy is best for you. Understanding the different types of boat insurance and their inclusions is the best place to start when determining the level of cover you'll need. For example, at Youi we offer the following watercraft products:
Comprehensive Boat Insurance: Cover for accident, natural disasters, fire & theft, damage to someone else's property
Third Party Fire & Theft Boat Insurance: Cover for fire, theft and earthquake, damage to someone else's property
Third Party Property Only Boat Insurance: Cover for damage to someone else's property
After you've compared different boat insurance products and have decided on the one that most suits your needs, you may need to tailor your policy for additional requirements. For example, you may wish to upgrade your level of contents, or insure your boat for sailboat racing.
Do I need boat insurance even when it's not on the water?
If you only use your boat a few months out of the year, you may wonder whether or not it's worth insuring off-season. Even though it's not in the water, you'll still need protection for when it's in storage, whether that's at home or somewhere else. Not all policies will cover your boat for damage, vandalism, theft or other events when it's off the water, so always check the PDS and talk to your insurer about your options.
How much should I insure my boat for?
Most insurers will allow you to nominate an insured value for your hull and tender, and depending on the watercraft type, there may be additional sums insured for your outboard motor(s), sails, masts, booms & rigging and trailer. Remember, your boat is a lot like a car in that it starts depreciating over time, so you don't want to insure it for more than what it's really worth.
If it's time for you to take out boat insurance, start a quote with us today to see how we make the process smooth sailing.