THURSDAY, DECEMBER 14, 2023
Home insurance is crucial for protecting your home and family in the event of a disaster. But it can also offer limited coverage for your watercrafts, such as a boat.
That said, there are also boat insurance policies specifically made to cover watercrafts. So, which option is better?
Home Insurance Limits 
The coverage for boats under home insurance is extremely limited. In fact, most policies only offer $1,000 in coverage for a single watercraft. Unless you own a single cheap Jon boat, this will hardly put a dent in repairing or replacing your boat.
The average deck boat alone is between $20,000 and $50,000. Plus, many home insurance policies are actual cash value, meaning that as the value of the items insured goes down, so does the amount of compensation you will receive.
Boat Insurance Basics
Boat insurance is a separate policy from your home or auto insurance policies. This insurance offers a range of coverages such as:
- Physical damage or loss: Loss of the boat or damage to it is covered under boat insurance if caused by fire, wind, hail, collision, vandalism, theft and other incidents. Items kept on the boat may also be covered.
- Liability: Liability coverage covers expenses related to bodily injury and property damage caused by the driver while operating the insured boat.
- Guest passenger liability: Guest passenger liability covers incidents involving a guest operating the boat with permission from the policyholder.
- Medical payments: Medical payments cover the medical expenses of the driver and their passengers after an accident.
- Towing: Towing can help if the boat is stranded on the water.
A boat insurance policy offers more choices on limits as well as additional coverage for customized boat parts.
Cost of Boat Insurance
Boat insurance premiums vary depending on several factors, most of which also affect car insurance rates. This includes:
- Location
- Age
- Coverage limits
- Deductible
- Value of the boat
- Driving record
- Credit score
- Claims history
On average, boat insurance is calculated at 1.5% of the boat’s value. For example, if your boat is valued at $30,000, your average annual premium would be around $450, which is less than $38 a month.
You can often save money by bundling policies, so if your home insurance provider offers boat insurance, you may earn a discount by bundling home and boat insurance with them as opposed to insuring elsewhere.
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