Your boat is a financial asset, but it can cost you a small fortune. And no matter how careful you are, accidents can happen at any time. Boats are stolen, damaged or destroyed more often than you realize. The financial loss can send you into bankruptcy. That’s why a boat insurance policy is a wise choice.
Boat insurance is typically required in states that require auto insurance. But the requirements may vary based on the size and type of vessel. The location where the boat is used might matter as well. And if you purchased your boat with a loan, the lender might have their own insurance requirements. These requirements combined determine what type of policy you need for your boat.
Even while on water, you are responsible for damages or expenses you create for others. Boat insurance gives you the financial means to pay for these expenses. Your policy will cover things such as medical expenses and repairs for other people involved in the accident. But to protect your own boat and belongings, you need a policy that pays to repair or replace your boat. The policy should cover your boat no matter if it’s on or off of the water. But the most important thing is to comply with the law. Make sure to at least have the amount required by your lender or state.