The Importance of Reviewing Your Boat Insurance Policy- How to Ensure You Have the Right Coverage


Whether you own a small bass boat or a large inboard motor yacht, it's important to have the right insurance coverage in place to protect yourself, your passengers, and your investment. 

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However, many boat owners make the mistake of purchasing insurance coverage once and never reviewing it again. This can lead to gaps in coverage and unexpected costs down the line. 

In this article, we'll discuss the importance of reviewing your boat insurance policy and how to ensure you have the right coverage. 

Why Is Reviewing Your Boat Insurance Policy Important?

There are a few reasons why it's important to review your boat insurance policy regularly. 

1.     Changes in Your Boating Lifestyle

Firstly, your insurance needs may change over time. For example, if you've made upgrades or modifications to your boat, you may need to adjust your coverage to reflect the increased value of your vessel. Similarly, if you've added new equipment or electronics to your boat, you may need to increase your Personal Property & Equipment Coverage to protect these items.

  • TIP: Depending on the details of your policy, Personal Property Coverage can protect against accidental, direct loss, or damage to the property. When speaking to an underwriter or agent, make sure you discuss the personal property you want to be insured.

2.     Adequate Liability Coverage

Another reason to review your boat insurance policy is to ensure that you have adequate Liability Coverage. Boat Insurance Liability Coverage can protect you if you cause damage to another boat or injure someone while operating your vessel. If you don't have enough coverage, you could be held personally responsible for any damages or injuries that occur.

  • TIP: Some policyholders opt for Liability-Only Boat Insurance Coverage since it’s the most affordable option. However, it is crucial to weigh the potential financial risk before opting for this type of coverage. It's important to note that liability-only coverage does not provide protection against significant risks associated with owning and operating watercraft. Therefore, it's advisable to consider additional coverage to safeguard your boat or PWC.

3.     Identifying Gaps in Coverage 

Reviewing your boat insurance policy can help you identify any gaps in coverage. Your policy may not cover certain types of damage, such as damage caused by a hurricane or flood. By reviewing your policy, you can identify these gaps and take steps to address them.  

  • TIP: Boat insurance can provide coverage for damage sustained from weather-related events such as hurricanes, named storms, and floods. However, it's important to note that such coverage may not always be included in a policy by default. Therefore, it's advisable to review your coverage before a storm arrives. 

4.     Discounts and Savings

By reviewing your policy, you may be able to find ways to save money on your boat insurance policy. Discounts are often available for things like completing a boating safety course and navigating in certain protected waters. 

Here are some boat insurance discounts that could help reduce your premium payments and save you money.

  • Boating Safety Course Discount: Completing a boating safety course is a great way to save money on your boat insurance policy. These courses are designed to teach boaters about safety regulations, navigation, and other important aspects of boating.
  • Lay-Up Period Discount: If you only use your boat during certain times of the year, you may be eligible for a lay-up period discount. This type of discount applies when your boat is not being used (typically during the off-season). 
  • Clean Driving Record Discount: Maintaining a clean driving record can contribute to lowering boat insurance costs. If you demonstrate safe driving behavior on the road, it may also translate to safe operation of watercraft.
  • Navigable Waters Discount: You may be eligible for an extra discount if you operate your watercraft in designated protected waters. For instance, if you solely navigate the Chesapeake Bay or limit your boating activities to freshwater areas, you could qualify for this boat insurance discount.

5.     Keeping Up With Policy Changes 

Insurance policies are subject to change, and it's important to keep up with any updates or changes to your policy. For example, your insurer may change its coverage limits or introduce new policy options. By reviewing your policy regularly, you can stay informed about any changes and make adjustments to your coverage as needed.

  • TIP: Many insurers will provide updates or notifications of policy changes, but it's always a good idea to review your policy at least once a year to ensure that you understand the coverage you have. It's also important to communicate with your insurance company if you have any questions or concerns about your policy or any changes that have been made. They can provide you with the information and guidance you need to make informed decisions about your coverage. 

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