Boat insurance policyholders don’t always understand their coverage

boat insurance

Many customers don’t realize that there is a great deal more to this protection than meets the eye.

Boating season is now fully underway and boaters have purchased their boat insurance policies for the season. That said, many of the 87 million recreational boaters in the U.S. don’t seem to fully understand those policies.

Recreational boaters buy insurance coverage year after year without knowing important points about it.

Among the most important types of boat insurance coverage is the form that provides protection when it’s not in use. When your boat is in storage, it still requires coverage. Therefore, you shouldn’t buy an insurance policy just for the time that it’s in the water. Instead, lay-up period policies can also be extremely helpful.

In fact, many insurance companies will offer special boating insurance discounts.  These are offered when additional information is provided by the policyholder.  The information typically includes details about where and how the watercraft is being stored for the winter.

Boat insurance covers your watercraft only during the time that it is on the water.

boat insuranceThis is a point that all too many consumers fail to recognize. Therefore, if you have your boat stored you will need additional lay-up insurance.  If it’s in a trailer attached to your vehicle, then you need to make certain that your auto insurance coverage will cover it. The same can be said if it is sitting at home on your driveway and a tree falls over onto it.  The homeowners insurance policy would have to cover it under that circumstance.

As you can see, just because you have boat insurance, it doesn’t mean that this will be the policy to protect your watercraft at all times. It is important to speak to your insurance company or agent in order to understand exactly when the coverage is effective. It is also important to know when the boat is not covered. Policyholders also need to know whether or not your other forms of coverage are necessary. Reviewing home and auto to be sure it is adequate for the remainder of the coverage is highly recommended.

While you have your insurer or agent on the phone, be sure to find out what parts of your boat are covered, too. This is important because most policies cover only equipment that is permanently attached to your watercraft and nothing that is merely stored there.

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