Boat Insurance Liability Coverage – Is Yours Affordable?
Liability coverage is one of the most important aspects of Boat Insurance. This type of insurance will protect you if someone’s property gets damaged or injured while they are on your boat. Many people looking into boat insurance will ask themselves the question, “is liability coverage provided by Boat Insurance expensive?” The answer to that question can vary depending on several factors, including the type of boat you own, your location, and how much insurance coverage you need. This article discusses what liability is offered in a typical boating policy and what it covers.
What is boat insurance?
This is a type of insurance policy that protects the owner from incurring financial loss in an accident or damage to their boat. Liability coverage for boats is one of the most important aspects of a boating policy because it protects you financially if someone gets injured or their property is damaged while they are on your boat. In some states, such insurance is required, and some states require you to keep your boat covered at all times. You can purchase this type of insurance policy through an agent or broker; most people choose to go with a full-service agent, which means that the company will sell them the policy, provide claims services (if needed), and handle customer service. You can also purchase this insurance policy through an independent agency not associated with any one company. In some states, you can even go online and buy a boat insurance policy from a direct seller as long as the state does not have a requirement for physical boat policies to be written by an authorized agent.
Liability coverage provided by Boat Insurance
Boat Insurance companies offer liability coverage as part of the standard policy. This type of insurance provides protection for medical expenses and other costs associated with personal injury as well as property damage that you may cause to someone else by either docking or dropping anchor at their dock or running into them with your boat. Liability Coverage is offered in two forms – per person and per accident. Per Person
The coverage will pay up to a maximum limit for each person injured or killed if they are on your boat. If there are 5 people on the boat, the insurer will only cover an amount equal to 5 times the limit purchased. This implies that if you have a $500,000 per person limit, the insurer covers up to $5 Million in claims. Per accident
This type of insurance will provide a maximum amount that the insurer will pay for each accident regardless of how many people are hurt or damaged property. If there are 5 people on your boat and 1 injury occurs, the insurer will only pay up to a maximum of one time the limit purchased. This implies that if you have a $500,000 per accident limit, the insurer would automatically cover up to $1 million in damages/injuries. Such insurance also provides medical payments coverage similar to Personal Injury Protection (PIP) provided by auto insurance companies. This coverage pays for injuries sustained by people on your boat regardless of who is at fault. It is important to remember that these benefits will only pay for injuries and not other damages such as property damage, loss of use, or pain and suffering. It provides very minimal coverage for your boat. Items typically not covered by a typical boat policy include damage to the vessel itself, loss of use or loss of earnings while your vessel is being repaired/towed, salvage costs (this means if you lose an anchor, it will be difficult to get reimbursed). It does not provide any liability coverage on land. If someone is injured on land due to your actions, you may have some exposure and would need additional liability coverage that covers actions that occur on land. You would also require Marine Inter-Insurance, which is separate from such insurance policies. This type of insurance protects insured when they have marine exposures that exist beyond their boat. For example, your dinghy is stolen while away from the boat, or you lose a fishing hook and damages someone’s property.
Is liability coverage provided by Boat Insurance expensive?
When it comes to deciding how much liability you want to purchase for your boat, this is largely dependent on the type of boat you own, where you keep your boat, the limits of liability you purchase, and whether or not your state requires boat owners to have coverage. The cost of an Insurance of a boat policy can vary widely from boat to boat. The limits of liability purchased and the location where you keep your boat are some of the main factors contributing to your policy’s cost. In addition, many insurers provide discounts on policies if they have been with them for several years or own multiple boats. If no claims have been made on a policy, it is not uncommon for an insurer to reduce their rates by as much as 20%. Therefore, it is important to compare and shop around when purchasing a policy and then continue that process to get the lowest possible rates. One of the most important things you can do when deciding how much liability coverage to purchase determines what value you place on your boat. Many people underestimate their boat’s value because they don’t realize all of the additional items/upgrades that have been installed, such as electronics, trolling motors, etc. If at all possible, we recommend having your vessel evaluated by an independent marine surveyor. At the very least, it is good to check with your local marine dealer or marina for current replacement costs and use that number when discussing liability limits with different carriers.