Everything You Need to Know About Boat Insurance

By theadmin

They say the two happiest days of a boat owner’s life are the day they buy the boat and the day it’s sold. But boat ownership doesn’t have to be a headache. There are few better ways to enjoy a Texas summer than hitting one of the state’s beautiful waterways. Before you set sail on your first boat-owning adventure, make sure you have an insurance policy that can cover any unforeseen events on the water.

1. Talk Policy Before You Shop Models

For many new boat owners, the question of boat insurance doesn’t arise until they are working through the paperwork on a purchase. But it’s a good idea to get a quote before you head to the dealership, according to Jacob Root, a Texas Farm Bureau Insurance Agent in Fair Oaks Ranch.

Getting a quote before you head in to buy will not only help the purchase process go more smoothly but also ensure that you have a better grasp on the true cost of boat ownership.

“As Agents, we’re usually notified while they’re at the dealership and trying to get proof of insurance,” Root says. “What I always coach people is that, if they know their boat type, let’s put some numbers together so you’re well equipped with information when you’re going into the dealership.”

2. Consider Several Types of Coverage

Boat insurance is often split into different coverages for the watercraft, outboard engines, and the trailer used to taxi the boat in and out of the water. All these items are covered under Texas Farm Bureau Insurance’s inland marine policy, but each will carry separate limits and deductibles. That’s because some boating mishaps — such as a stolen or damaged outboard motor — are more common than other accidents.

3. Coverage and Premiums Depend on the Type of Boat

Like auto insurance, the cost of boat insurance is affected by the type of boat you purchase. This is also why it’s a good idea to review your options with your Agent as you consider makes and models.

Premiums for higher-horsepower engines and more expensive boats will tend to run higher. “It’s just like insuring a vehicle,” Root says. “If you’re going to buy a Pinto, it is going to be small. But if you buy a Cadillac, it’s going to be Cadillac prices.”

Another coverage consideration is size. Texas Farm Bureau Insurance does not write policies for boats that are longer than 25 feet, but your Agent can help you obtain coverage through a partner carrier.

4. Location and Use Matter Too

As with homeowner’s insurance, your location will also impact coverage and cost. For example, insurance premiums for boat owners along the Gulf Coast may be higher than those for boats that are going out on inland lakes, away from seasonal storms.

5. Liability Coverage Is Worth Adding

Texas Farm Bureau Insurance’s inland marine policy covers the two most common claim culprits: theft and physical damage to the boat. However, Root encourages clients to add a watercraft endorsement to their homeowner’s policy, which will extend liability coverage to their boat.

“Sometimes people think they can be over-insured,” Root says. “But unfortunately, we live in a sue-happy world, so better be safer than sorry.”

The policy is relatively inexpensive and offers broad protection. It is a simple path to peace of mind so that when you’re on the water this summer, you can spend your time just worrying about having fun.

Call your Texas Farm Bureau Insurance Agent to review the coverage you need to become a boat owner today, then brush up on these boating safety tips to avoid marine mishaps.