Top 10 Common Boat Insurance Myths – Debunked!

Myth 3: “Boat Insurance Covers Everything”

It’s a common belief that boat insurance covers all types of damage, accidents, and losses—but that’s not quite true. Boat insurance policies come with exclusions and limits, and it’s essential to understand these to avoid any surprises when filing a claim.

Some common exclusions in boat insurance policies include:

• Wear and Tear: Damage caused by normal wear and tear, such as engine breakdowns or deterioration of the hull over time, is typically not covered.
• Neglect: If damage occurs due to improper maintenance or neglect (e.g., failing to winterize your boat), your insurance may not cover the repair costs.
• Racing: If you’re using your boat in competitive racing, many standard boat insurance policies will exclude coverage for incidents occurring during a race.

Reading the fine print and understanding the terms of your policy is crucial to ensure that you’re not relying on coverage that doesn’t exist. When choosing a policy, make sure you understand what’s covered and what’s excluded, so you can make adjustments to meet your specific needs.

Myth 4: “If I’m in a Marina, I Don’t Need Insurance”

Some boat owners mistakenly believe that their marina will automatically cover any damage that happens to their boat while docked. In reality, marinas typically don’t offer comprehensive insurance coverage for your boat. While some marinas may have general liability insurance for their premises, it’s unlikely that this would cover damage to your specific vessel.

There are still many risks when keeping your boat in a marina:

• Accidents: Boats can be damaged by other vessels, either by accidental collisions or negligent docking.
• Theft or Vandalism: Even in a marina with security, theft and vandalism can occur.
• Natural Events: Marinas may not be protected from severe weather or environmental hazards like flooding or storms.

Having your own insurance ensures that you’re covered for damages, theft, and liability, even while your boat is docked. Liability and property damage coverage are essential to have, no matter where your boat is located.

Myth 5: “My Boat Is Covered by My Homeowners Insurance”

Many people assume their homeowners insurance will cover their boat. While homeowners policies may offer limited coverage for small watercraft (typically under a certain size, like 15-20 feet), this coverage is usually inadequate for the needs of most boat owners.

Homeowners insurance may cover certain types of damage, such as fire or theft, but it often doesn’t include liability protection or cover damages to your boat caused by collisions, accidents, or natural events like storms. Additionally, if you use your boat for recreational purposes, it may exceed the limits of your homeowners policy.

If your boat is larger than what is covered by your homeowners policy or if you use it regularly, you’ll likely need a separate boat insurance policy. This will ensure that you have proper coverage for both your vessel and your liability when you’re out on the water.

Myth 6: “Only Larger Boats or Yachts Need Insurance”

There’s a misconception that boat insurance is only necessary for large, expensive boats or yachts. In reality, all types of boats, from small fishing boats to personal watercraft like jet skis, face risks that can result in significant financial loss.

Small boats are just as susceptible to:

• Theft: Even small, inexpensive boats are attractive targets for thieves, particularly when they’re left unattended at marinas or docks.
• Accidents: Smaller boats can easily collide with other vessels or objects, resulting in damage that can be costly to repair.
• Weather: Severe weather events, including storms and high winds, can cause damage to small boats just as easily as large ones.

Boat insurance is customizable to fit any type of watercraft, no matter its size. Even if you have a small boat, you can find an affordable policy that covers potential risks, ensuring you don’t end up paying for repairs or replacements out of pocket.

Myth 7: “If I Leave My Boat in Storage, I Don’t Need Insurance”

When your boat is out of the water during the off-season or in storage, you might think it’s safe from risks. But even when your boat is in storage, it’s not risk-free. Damage, theft, and unforeseen events can still occur.

Risks include:

• Theft: Boats in storage, especially those left in unsecured or off-site locations, can be stolen.
• Fire: Boats stored near flammable materials or in areas susceptible to fire are at risk.
• Weather: Severe weather events like storms, hail, or flooding can damage boats in storage, particularly if they’re kept outdoors or in less-than-ideal conditions.

Some boat insurance policies offer storage-specific coverage, while others may include comprehensive coverage that extends to storage periods. Be sure to talk to your insurance provider to ensure your boat is protected during the off-season.