Is Your Boat Insurance adequate? – Checkup time!

Ensuring Adequate Boat Insurance Coverage for a Safe and Enjoyable Boating Season

As the boating season kicks off, it’s essential for boat owners to ensure their insurance policies are comprehensive enough to provide adequate coverage in case of unforeseen events. While many recreational boaters may never need to file an insurance claim, being prepared for the unexpected can offer peace of mind. Here are three crucial coverages suggested by the Boat Owners Association of The United States (BoatUS) that every boater should review in their insurance policy:

1. Consequential Damage Coverage

One of the critical aspects of boat insurance is consequential damage coverage. Often, major incidents such as sinkings can be traced back to the failure of a seemingly minor component below the waterline. Examples include cracked rubber outdrive bellows or broken thru-hulls. While these specific parts may not be covered individually, consequential damage coverage steps in to cover the resulting losses or damages, such as repairs or total loss of the vessel, up to the selected limits. It’s important to note that this coverage typically applies to significant or total losses resulting from events like sinking, fire, explosion, demasting, collision, or stranding.

2. Salvage Coverage

In the event of an incident where the boat is salvageable but requires retrieval and repair, salvage coverage becomes crucial. Some insurance policies may subtract salvage costs from the insured value of the vessel, leaving boat owners with reduced funds for repairs or total loss settlements. Alternatively, some policies may offer only a small percentage of the insured value to cover salvage costs, leaving the boat owner to cover the rest out of pocket. It’s imperative to ensure that your policy includes salvage coverage separate from and equal to the limit of your boat’s hull-value coverage.

3. Hurricane Haulout Coverage

For boat owners located in hurricane-prone areas, having hurricane haulout coverage is essential. This coverage assists boat owners in making the decision to haul out their vessels before an impending storm by covering a portion of the labor costs associated with professional hauling, preparation, and tying down. While hauling out before a storm incurs expenses, it can potentially save money compared to the costs of repairing storm-damaged or lost vessels. BoatUS Marine Insurance Program, for example, offers coverage that pays 50 percent of labor costs, up to $1,000, for hauling or moving the boat to a safe location, without penalizing the policyholder.

• Review your boat insurance policy to ensure it provides adequate coverage.
• Consider the following crucial coverages: consequential damage coverage, salvage coverage, and hurricane haulout coverage.
• Consequential damage coverage protects against losses resulting from the failure of small parts that may not be individually covered.
• Salvage coverage ensures that the costs of retrieving and repairing a salvageable boat are adequately covered.
• Hurricane haulout coverage assists with the expenses of safely relocating the boat before a storm hits.

Conclusion

By reviewing and updating your boat insurance policy with these critical coverages, you can embark on the boating season with confidence, knowing you’re prepared for whatever may come your way.

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