Does Homeowners Insurance Cover My Boat?

Homeowners insurance doesn’t have all of the coverage you need to truly insure your boat, unless you’re talking about kayaks and small recreational crafts.

Homeowners insurance cannot offer any boat coverage while it’s on the water. However, canceling your boat insurance during the winter can be tempting.

Some people may think that homeowners insurance will be enough for their vessel in the off-season. But, before you rely on it, you have to know what homeowners insurance does and does not cover.

Homeowners Insurance Covers…

During the winter, you may be surprised by the number of accidents and hazards your boat could experience, including:

• Theft
• Bodily injury caused to another person
• Property damage caused to someone else’s property
• Guest/passenger liability for legal expenses incurred by someone using the boat with the owner’s permission
• Medical payments for injuries to the boat owner and other passengers

For incidents like these, you will need coverage and lots of it. Homeowners insurance will cover kayaks, canoes, and small sailboats. Now, if you’re investing in boat insurance in the first place, these are not likely the vessels you need insured.

On top of this, homeowners insurance typically has around a $1,000 limit. That means, for any incidents that cost more than $1,000, you will have to pay the entirety of the remainder out-of-pocket.

It will cover damages, vandalism, and even theft, but again, only up to that $1,000 limit.

But it Does NOT Cover…

First things first, homeowners insurance won’t really cover your average boat, especially not to the extent that you would need. Most damages will require much more than $1,000, otherwise, you wouldn’t really need insurance in the first place.

Keep in mind, however, that your homeowners insurance plan will more than likely require a deductible when you file a claim. And, depending on your plan, this deductible may even be close to if not more than the actual amount of coverage offered.

Say someone steals $1,500 worth of items from your boat. Without boat insurance, your homeowners insurance will cover $1,000 of it. However, let’s say your deductible is also $1,000. At that point, you are paying more for the insured coverage of the incident than you would pay out-of-pocket—you want to be sure that the coverage you rely on makes sense and actually provides substantial help.

Simplifying Insurance One Customer at a Time—Call Redwood Agency Group

Insurance is complicated. When it comes to saving money on boat insurance, the last thing you want to do is cut corners. But how can you be sure you are paying a fair price? What about the coverage you receive?

Our goal is to make sure that your boat insurance is smooth sailing. Whether you’re ready to settle into a plan or are shopping around, we’re here to help. For a quote from one of our agents, call Redwood Insurance Group at (512) 994-0894.