When you take your boat on the open waters, the last thing that comes to mind is getting into an accident. The truth is they do happen, and without the right boat insurance policy, you could be liable for damage caused by your boat or watercraft.
The damage a boating accident can lead to isn’t limited to just your vessel. You have to think about the potential damage that you could cause to someone else’s property, and in more serious cases if someone gets injured, medical bills can arise. That’s when boat liability insurance kicks in, a common boat insurance coverage that can help compensate for these types of expenses.
What Does Boat Liability Insurance Protect?
Boat liability insurance also referred to as watercraft liability coverage, typically consists of two types of protection:
- Watercraft bodily injury liability coverage: Compensates you for medical bills and other related costs such as loss of income, in the event someone is injured from a boating accident you were liable for.
- Watercraft property damage liability coverage: Reimburses you for the cost to repair or replace another person’s boat or property should you damage it in a boating accident. This type of coverage typically applies to collisions, but it can also help in other situations. For example, if you accidentally spill fuel that damages someone else’s property, watercraft liability insurance may cover the costs for cleaning up the spill. Liability coverage may also compensate you for wreckage removal if a covered boat accident requires raising, removing, or towing your vessel from the water.
When it comes to boat liability coverage, it does not apply to the medical bills or boat repairs to you or members of your household. It’s a good idea to look into purchasing medical payments coverage or boat property coverage to help reimburse you for your own expenses should you be involved in a boating accident.
How Much Boat Liability Insurance Coverage Do I Need?
Like all insurance policies, boat liability coverage does come with a limit, which is the maximum amount your insurance provider will pay towards a claim. When deciding your boat liability coverage limits, you’ll want to consider the following:
- Could you afford to cover the cost of someone else’s medical bills if you are liable for injuries due to a boating accident?
- Could you afford to pay out of pocket for repairs on someone else’s boat or other property that you caused damage to?
Check with your insurance agent to assess how much boat liability coverage you should get. At TGS Insurance, our agents can help you find the proper boat coverage limits that are specific to your needs and budget. Keep in mind that the more liability coverage limits you want, the higher your premium will be.
If you feel that you need more protection, you may want to consider purchasing an umbrella insurance policy. It provides more liability coverage that exceeds the coverage limits of a standard boat insurance policy. Typically, an umbrella policy starts with a $1 million coverage limit. If you’re curious to see how much it will cost you for an umbrella policy, an agent from TGS Insurance can gladly assist you.
Don’t Count On Your Homeowners Insurance to Protect Your Boat
Your homeowners insurance policy does provide coverage for your boat, but a very limited amount. According to the Insurance Information Institute, homeowners insurance only covers small boats like canoes, small sailboats, or small power boats that go less than 25-mph. Coverage typically includes the boat, motor, and trailer combined, but your home policy only provides you with $1,500 in coverage and most repairs are way above this amount, according to the National Association of Insurance Commissioners (NAIC). Liability coverage is generally not included but can be added as an endorsement to a homeowners policy. Larger and faster boats such as a deck boat or yacht will require a separate boat insurance policy to have the coverage needed for the risks bigger boats come with.
Owning a boat is a major investment and like the responsible boat owner that you are, you’ve probably dedicated a lot of time maintaining it. Having the proper boat insurance policy can protect you and your prized possession from the dangers that can happen on the waterways.
Get The Lowest Rates On Boat Coverage From TGS Insurance!
At TGS Insurance, our agents specialize in finding you customized boat insurance that is suitable for your needs that doesn’t break the bank. We understand how valuable your time is, which is why we do all the hard work for you! From our bank of over 35 top-rated insurance providers, we’ll find you a boat insurance policy that gives you the most coverage for the lowest rate on the market. Throughout the entire process, our agents will answer any questions that may arise to ensure you’re getting an exceptional customer service experience. Shopping for insurance is simple, stress-free, and affordable when you work with TGS Insurance! See how much your boat costs to insure right now!