Watercraft

If you own a boat, you need boat insurance. It's just that simple. Before you actually purchase a policy, however, consider the following facts.

It pays to shop around when you're buying insurance. First, contact your current insurance company for a quote, and then research the rates of its competitors. Insurance agencies and insurance agents want to sell insurance, so it's likely that they will offer you incentives if you add boat insurance to your existing policies. If you can find comparable insurance at better rates from another agency, be sure to tell your agent. A counteroffer that benefits you both might be the result.

Some insurance companies will only cover the owner of a boat insured under their policy. In other words, if someone other than the owner operates the boat and an accident occurs, those insurance companies will disallow coverage. Ask your agent who is covered by your insurance company's boat policies. If they will only cover you, the owner, you may want to shop for a new agency.

Today many states require that boat owners carry watercraft liability coverage. This coverage protects owners against any damage caused to people or property by their boat due to its use, maintenance or ownership. Watercraft liability coverage also provides legal defense, and it protects owners in the event of collision, stranding, sinking, fire, theft and vandalism.

Insurance requirements, of course, are different in each state, so check with your insurance agent to see if watercraft liability insurance is mandatory where you live.

Wreckage removal coverage is an excellent optional policy for every boat owner to consider. In the majority of locales, wrecked or sunken boats must, by law, be removed, usually at the owner's expense, a process that can be quite costly. With wreckage removal coverage, however, the insurance company pays the bill.

In addition to wreckage removal coverage, boat owners should consider purchasing coverage that will pay for normal repairs as well as mechanical failure and towing.

Boats are pricey investments. They are not only costly to buy, but they are also expensive to maintain and repair. Likewise, replacing a wrecked or inoperable boat would not be cheap. That's why it is so important that you, as a boat owner, get the coverage you need to protect yourself from costly damage or loss that could ground your boat forever.