Whether your boat is docked at a local marina or stored in your private boathouse, boat insurance can protect you from risks on the water. While boat insurance coverage is not mandatory, it can cover damages, liability, and other unforeseen events. So, if you are already daydreaming about the sun shining on the waves or that perfect fishing cast, it’s never too early to ensure you have the right coverage for your watercraft. Let’s dive deeper into boat insurance, coverage types, and answers to your most frequently asked questions.
What is boating insurance?
Although boating insurance is not mandatory in Ontario, there are many reasons to consider protecting your investment against risks. Transport Canada’s Boating Laws and Regulations BOATsmart! website, notes that “You are not legally required to insure your boat, however, it is highly encouraged. Your homeowner’s insurance will not sufficiently protect your investment.”
When it comes to insuring your boat, it’s often best to separate your boat insurance from your homeowner’s policy. It is important to note that the type of boat you have will often dictate how you need to insure it.
Staying protected with boat insurance
High-quality boat insurance coverage is crucial when it comes to making sure you and your loved ones are safe and protected when out on the water. By acquiring boat insurance, you can have peace of mind knowing the following is protected:
Your boat
Let’s face it, your boat is most likely your pride and joy! It is something that you have invested not only money into, but time as well. Making sure it is protected to the fullest is extremely important to make sure it can be used year-round. With boat insurance, your boat, the motor, and accessories are all protected from damage, theft, vandalism, and more!
Your belongings
When it comes to your boat, there are a plethora of activities you can do on it. No matter what that activity is, you’re going to want your items covered! From fancy utensils for hosting to wakeboards and tubes, boat insurance can protect your most precious items from damage or theft.
Protect yourself with liability claims
No matter how hard we attempt to prevent them, accidents can sometimes happen. This is the case on the water, as well! If you cause damage to somebody or their property while boating, you can be financially protected with boat insurance.
Reasons to carry boat insurance
While boat insurance coverage is not a requirement in Ontario, it could be a very costly decision in an attempt to save money on your monthly expenses. Many reasons support having boat insurance, including:
- Liability coverage for injuries to people on the boat, in the water, or on other boats
- Liability coverage for property damage as a result of operating the boat/watercraft
- To obtain storage privileges at a marina or other boating facility
- It helps to secure financing for the purchase of new watercrafts
- Better coverage than what may be covered under home insurance
- To keep boat-related claims separate from your home insurance policy
- As your boat ages, it will help guarantee that it is still seaworthy each year (Survey may be required)
What does boat insurance cover?
Most policies will protect your boat and personal belongings against risks, as well as provide liability coverage protection for your passengers. Boat insurance coverage will typically cover liability for water sports activities, too. Here are some other coverages included:
- Coverage for risks as a result of weather, theft, fire and vandalism
- Loss and damage due to accidents
- Emergency towing and loss of use
- Medical costs and accident benefits for operator and passengers
- Damage or loss to navigation equipment, sports equipment, and personal belongings
- Pollution and wreck removal
- Damage to furniture, the hull, sails, motors and trailers
What boat insurance does not cover
You need to speak with your isure broker to better understand what exclusions may exist in your current policy, such as:
- Damage from ice or freezing temperature
- Depending on the size or type of watercraft, there may be navigational limits to where and how far you can travel
- Damage from pests, like rodents and animals, while docked or stored
How much does boat insurance cost?
Similar to a car, rates for boat insurance coverage may vary based on a variety of factors. The information that an insurance company requires about a boat and its operators is similar to the type of information it needs to provide auto insurance. The average premium can range anywhere from $300 to $1,000+. Here are just some of the factors that may help determine your rates:
- The boat’s length, type, and value
- The boat’s size and horsepower
- Experience, loss, and claims history of the operator(s)
- Navigational range allowed and if you charter your boat
- Its condition and market value – your insurer may ask for a survey if your boat is more than 15 years old
- How frequently the boat is used, what it’s used for and how and where it is stored
- Additional equipment (GPS, trailer, etc.)
- Possession of a Pleasure Craft Operator Card
It is important to keep in mind that if you also own a cottage, you may have outbuildings, such as a boathouse, garage, or shed. You may need additional coverage to ensure that these buildings are fully protected – be aware of coverages and exclusions.
Keeping boating insurance costs low
Like a basic auto insurance coverage package, there are multiple ways to help keep your premiums as low as possible without short-changing yourself on coverage. For example, combining your policy with a home or auto insurance policy will get you a better price. Taking a boating course will also give you better driving rates, similar to how a driving course can lower your car insurance rates. On top of this, simply maintain a clean track record! By maintaining a claims-free record as well as a clean driving record, you will be guaranteed a lower policy price.
Do I need boat insurance coverage year-round?
Unlike a car, a boat usually isn’t an item you use year-round. However, even with this being the case, having your boat covered year-round is highly recommended. Unfortunately, a large majority of boat claims happen during the off-season. Threats exist to your boat at all times of the year, even in the off-season. Not only is the off-season a prime time for targets to steal a boat, but your boat is at risk of damage from weather, vandalism, and more.
Boat insurance coverage: A conclusion
We hope that after reading this article, you know everything there is to know about the world of boat insurance. A day out on the boat with family and friends can be an incredible time to spend a Summer’s day. However, it is also a good time to follow boating safety protocols. If you need a refresher, check out our article on 10 boat safety tips.
Remember, if you have any questions on boat insurance or would like to request a quote, contact us at isure today!
