MoneyINC Logo
Years of

10 Reasons Why You Need to Get Boat Insurance


One of the most entertaining means of transportation to own is a boat, especially if one happens to have access to a lake, river, or any body of water where it's perfectly safe to enjoy the sport of boating. There are many reasons why a boat is so desirable to have, whether it be by rental or ownership. Fishermen love being able to go out into the middle of a lake and put their skills to the test in their attempt to get that big catch worth bragging about. Motorboat enthusiasts who enjoy zipping up and down the waves of the water can't seem to get enough of the rush that comes from enjoying the experience. Whether the reason to get into the boat is a means of relaxation or an opportunity to run wild, the importance of safety can never possibly be expressed enough.

Safety Matters

Boarding a boat without ensuring you have all the safety gear needed to avoid disaster is not just wise, but necessary to ensure the experience does not turn into an otherwise avoidable tragedy. Assuming the unexpected will never happen has proven to be a costly mistake that hits more than just the pocketbook. It also claims lives. Unlike property that can be replaced, a life lost because someone failed to wear a life jacket or take other safety precautions cannot. However, as important as it is to take all the necessary precautions to ensure everybody who boards a boat is safe, so is the case with boat insurance. The boat, whether it's a rental or owned, is property. Interestingly enough, it's one of the most overlooked pieces of property that all too often does not get insured. People don't waste time insuring their cars and homes, but for some reason when it comes to recreational vehicles such as boats and campers, this isn't always the case.

Things Happen

The majority of the time, accidents are unforeseen events that come about due to a wide variety of circumstances that can turn a perfectly normal environment into a disaster. While most of the time accidents seem to be avoidable, when a situation comes about that dictates otherwise, then the impact of that accident will depend on how well prepared all those involved were at the time it happened. Always, the unprepared will have a tougher time dealing with the consequences than the prepared. This not only applies to standard safety measures but towards the often overlooked details such as preventative measures and insurance.

1. Lawsuit Avoidance

Although it's not yet legally enforced, obtaining boat insurance does exactly as insurance policies are designed to do. This is your own personal safety measure to avoid the potential of lawsuits filed against you should there be the event of an accident that results in either property damage or physical harm to another person. Even if you're the most responsible boater on the water, should the unthinkable happen where an otherwise normal afternoon now becomes a precarious one, you may be held liable for whatever the final outcome happens to be. Even if it's an hourly rental unless you've agreed to boat insurance, any damage done to that boat while you operated it will be your responsibility to cover. Where do you think your money is best spent between a few dollars on insurance or potentially a million dollars in personal liability where you can lose everything? If boils down to this as an option, suddenly investing in boat insurance feels like a bargain.

2. Personal Property Coverage

If you have enough money to invest in the purchase of a boat, then you should have enough money to also invest in boat insurance. Usually, the insurance is cheaper to fork out in a payment plan than a boat. Even if it's not in the water, anything can happen to that boat such as a random accident that damages it, or perhaps even theft. While boat owners may have the foresight to apply insurance for their homes and regular vehicles, they don't always think about the boat. When something happens to the house, coverage of the boat may not be included. This then becomes a costly loss that can otherwise be avoided.

3. Liabilities

It is the purpose behind insurance is to cover liabilities an individual would not be able to cover entirely on their own. Not only does the importance of boat insurance apply in liability issues concerning others, but for the boat owner as well. When insuring a boat, it is also classified and registered as all this is a requirement to make sure the proper insurance and its rate are applied. This is liability coverage for you and your boat as you may be on the receiving end of an accident that has you as the victim of circumstance. That insurance covers you so that anything medical that is of concern to you is covered, as well as anything of property concern for the boat.

4. Wise Investment

Putting money into boat insurance is a wise investment to make sure there's no need to worry about what's going to happen to your boat while it's insured. There's also the issue of an act of nature that results in not just the damage of your home, but your boat as well. Again, unless there are direct specifications in the home insurance policy to cover your boat, whatever happens to it will be a loss you will have to deal with on your own.

5. It's Customizable

Boat insurance is customizable enough where you can determine what sort of coverage you want. There's the option to go basic, which is covering basic liabilities and nothing more, or with as many add-ons as you wish to have, pending on how much value you place in the assurances that come with an insurance policy.

6. Covering Unexpected Expenses

Houseboats are all too often overlooked, even if it serves as a place of residence among boat owners or renters. Even if it isn't registered in the same manner as a typical residential property, it's still property nevertheless. The regular investment into the insurance of the houseboat covers the potential of having to contend with unexpected expenses, These may come about should the houseboat become lost due to a catastrophic accident that results in it no longer becoming a livable environment. When this happens, you'd be looking into where to stay, how to live, etc. There are boat insurance policies that cover these issues so you don't have to.

7. Emergency Coverage

Should the event occur where the boat you're in leaves you stranded in the water and you need to be towed in, the boat insurance covers this cost at a lower dollar level than the tow job itself. This towing coverage isn't just limited to on-water incidents, but also on-road should an accident occur even while it's merely parked.

8. Respectability

By being responsible enough to invest in boat insurance, suggests you respect yourself, others, and your property enough to have an insight level which not everybody has. While it's not the idea to obtain special social status by taking out boat insurance when the time comes to explain an accident and it's established you have boat insurance, it actually gives you more credibility. This is especially important should an accidental matter end up in the court of law that sees a lawsuit filed and it's expected that you have to foot the bill. That boat insurance not only places you look more responsible but removes the burden of whatever financial impact could be involved should an accident that caused damage take place.

9. Growing Rental Requirements

More boat rental facilities and marinas are now requiring a potential boater to have boat insurance. Without it, you will not be permitted to operate any motorized watercraft from them. Even if you're an experienced boater with all the credentials to prove you know how to operate a boat, such facilities have insurance policies to accommodate their best interests. This means if it goes against their insurance policy to rent a boat out to you, they won't do it.

10. No Boat Insurance, No Service

A number of boating docks, marinas, resorts, and storage facilities that allow boats will expect the boat owner to have boat insurance before being allowed to use their service. Even among storage facilities, they make it clear they are not to be held responsible in the case of property damage of your belongings while it's there. This includes the boat. Things happen, whether somebody sees it coming or not. Insurance policies are there to make sure whatever those things happen to be that it won't result in a catastrophe that may prove to be too costly to afford.

Dana Hanson

Written by Dana Hanson

Dana has extensive professional writing experience including technical and report writing, informational articles, persuasive articles, contrast and comparison, grant applications, and advertisement. She also enjoys creative writing, content writing on nearly any topic (particularly business and lifestyle), because as a lifelong learner, she loves to do research and possess a high skill level in this area. Her academic degrees include AA social Sci/BA English/MEd Adult Ed & Community & Human Resource Development and ABD in PhD studies in Indust & Org Psychology.

Read more posts by Dana Hanson

Related Articles

Stay ahead of the curve with our most recent guides and articles on , freshly curated by our diligent editorial team for your immediate perusal.
As featured on:

Wealth Insight!
Subscribe to our Exclusive Newsletter

Dive into the world of wealth and extravagance with Money Inc! Discover stock tips, businesses, luxury items, and travel experiences curated for the affluent observer.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram