What Types of Liability Coverage are Necessary for Boat Insurance?

Owning a boat can be one of the most exciting investments you make. You can't wait to get out onto the water, relax under the sun and see the world from a new vantage point. But before you make the move to use your boat, you need to ensure you have the right level and type of boat insurance in place. Boat insurance often protects the value of the boat from accidents or storms. This form, called property insurance, is only one type of boat insurance plan you need. You also need to consider liability insurance.

What Types of Boat Liability Insurance Do You Need?

Watercraft insurance, including liability, offers protection from many of the risks boaters face. The goal is to have a policy in place to cover any type of accident that should occur. Liability insurance covers damage to another person or another person's property that you are responsible for. For example, if you are on the water and collide with another boat causing damage to it, you need boat liability coverage to pay for those damages.

Boat insurance should also cover medical payments. This is in addition to a traditional liability insurance plan. This plan provides for coverage of medical bills incurred by another person due to an accident or injury you or your boat causes. It often has a higher coverage level, providing improved coverage.

What About Liability-Only Coverage?

Some people have a boat that's older and less valuable. If you do not want to protect the value of your boat, liability-only boat insurance may be an option. This can reduce the cost of the insurance. However, it offers no protection for the boat itself.

What is the right insurance plan for your boat? This depends on the value of your boat, the way you use it and the overall risks you have. Having storage insurance, coverage for roadside breakdowns and property insurance are all options. The key to learning which plan is right for you is to talk to your insurance provider about your options. Don't overlook the value of having boat insurance policies that are comprehensive and offer ample coverage if an accident should occur. You'll appreciate it later.