Boat Owners Answers

I own a boat that I use for fishing and water-skiing. Does my homeowners insurance policy provide coverage for my boat?

Most homeowners insurance policies offer very limited or no coverage for physical damage losses or liability claims that arise from the negligent ownership or operation of a pleasure boat. For these reasons, individuals usually need to buy a separate policy to provide physical damage and liability coverage for boats. Insurance for pleasure and recreation boats is available from many private insurance companies. A boat owners package policy combines a number of coverages into one policy and should cover most losses that could arise out of either the ownership or operation of a pleasure boat. Another package policy, personal yacht insurance, is designed for larger boats such as cabin cruisers, houseboats, and large sailboats.

What coverages are provided in the typical boat owners package policy?

Before we discuss the contents of a typical boat owners package, it should be noted that these contracts can vary substantially from one insurance company to another. Therefore, when you are comparison shopping, be sure that you understand what coverages the insurance company is offering in its policy. That being said, there are a number of common coverages that are provided in most boat owners insurance policies. First, most policies offer coverage for physical damage losses to the boat, typically on an all-risks basis. Second, most policies offer liability coverage for any damages arising out of the negligent ownership or operation of the covered boat. Third, most policies provide coverage for medical expenses incurred by the driver and passengers involved in a boating accident. Finally, some boat owners policies provide an uninsured boaters coverage that is very similar to the uninsured motorist coverage included in the private passenger automobile insurance policy.

What coverages are provided in the typical personal yacht insurance package?

Like the boat owners policies, the coverages included in personal yacht insurance policies vary substantially from one company to the next. However, most personal yacht insurance policies have at least two coverages: physical damage to the hull, and protection and indemnity (P&I) coverage. The physical damage to the hull coverage provides protection against losses or damage to the boat itself, including the masts, spears, furniture and any other fixtures on the craft. The coverage can be written on an all risks or named perils basis. The P- protection and indemnity - coverage is similar to the personal liability coverage in the standard homeowners insurance policy. It provides liability protection against lawsuits due to the negligent operation or ownership of the yacht.

These questions and answers are provided for users' general information. Although we make every effort to insure accuracy in the information provided, we cannot make any guarantees as to this accuracy. We urge you to consult your lawyer, accountant or tax advisor for specific legal or tax advice.