Smooth Sailing: Insurance Guide for Boats, Jet Skis, Yachts & More
The primary focus of boat, yacht, or jet ski ownership should be making buoyant memories and experiencing the thrills of navigating the open ocean or a beautiful lake. But imagine a situation where you encounter troubled waters, resulting in your vessel becoming damaged or finding yourself at fault for property damage or other liabilities.
That’s where watercraft insurance comes in—a potential life preserver offering peace of mind when you need a solution most.
WHAT IS WATERCRAFT INSURANCE & HOW DOES IT WORK?
Watercraft insurance is personal coverage for boats, yachts, jet skis, and various other personal maritime vessels. Generally, it works like auto coverage—you connect with an insurance agent to curate a policy tailored to your needs and pay a monthly premium to maintain the plan.
That plan then offers potential financial protection from losses and liabilities associated with watercraft ownership. In this case, the insurance is used as a catch-all term for vessels with a motor exceeding 25 miles per hour, but with terms based on the vehicle, budget, and desires.
BOAT INSURANCE
The coverage and limits of boat insurance can vary based on factors like the type and value of the vessel, how you use it, and your insurance partner. Regardless, at its core, a policy typically includes the following coverage:
- Medical payments due to bodily injury or harm
- Bodily and personal property damage liability coverage
- Uninsured or Underinsured Watercraft Coverage
- Fuel spill liability protection
- Collision insurance
- Towing and other repair assistance
And other curated perks individualized to your needs, including theft protection, hurricane requirements, and more.
We recommend reviewing your renters or homeowners insurance to see if it covers smaller watercraft like canoes or other low-horsepower boats.
JET SKI INSURANCE
Jet ski insurance is also known as personal watercraft insurance or PWC. Wave runners, Sea-Doos, and any other water vehicle that can seat one or two passengers and reach speeds over 25 miles per hour are eligible for PWC insurance.
PWC coverage is pretty nimble in terms of what you and your insurance agent curate based on your needs. Generally, jet ski coverage may include:
- Liability coverage for unexpected accidents
- Fire and storm damage
- Transportation accidents
- Theft
- Fuel spills
- And other additional needs
YACHT INSURANCE
Yacht insurance is for high-value boats that are typically valued above $175,000. This coverage is generally more comprehensive and expensive than standard boat insurance because of the risks associated with larger vessels that can travel farther distances.
There are two main parts to a yacht policy you should know:
- Hull insurance: This covers damage to the boat itself up to an agreed value.
- Protection and indemnity insurance: This provides liability coverage for crew, maritime workers, and legal judgments.
Policy details vary depending on the yacht’s use and value. As a result, we recommend speaking directly with an insurance provider to ensure you receive coverage tailored to your situation.
QUICK FACTS ABOUT WATERCRAFT INSURANCE
AGREED VALUE (AV) VS. ACTUAL CASH VALUE (ACV)
As insurance professionals, we always walk our clients through the differences between AV and ACV terms and how it relates to pricing and the plan itself. Regardless, there are two types of payment options to know. Those include:
- The Agreed Value (AV): This offers a predetermined payout based on the insured value decided between the agreement made by you and your provider in advance.
- Actual Cash Value (ACV): This offers a payout determined by the boat’s depreciated and current market value.
LENDERS & MARINAS USUALLY REQUIRE WATERCRAFT INSURANCE
In most cases, a lender will require the borrower to enroll in a watercraft policy when purchasing a boat, yacht, or jet ski. Marinas and other docking stations may also require proof of insurance before mooring or storing a watercraft.
GET THE RIGHT WATERCRAFT INSURANCE AT THE BEST PRICE
Given the nuances of our topic, it’s best to partner with an experienced insurance team. Doing so allows you to receive personalized advice and pricing options tailored to your budget and watercraft.
At JD Fulwiler & Insurance Company, we know the importance of adding another layer of financial protection with specialized coverage for a specific watercraft. We also have the experience to design individualized plans.
We’re here to help you select the right insurance solutions to protect you and your family. Call us at 800.735.8325 or contact us online to learn how partnering with the right insurance agent can keep you afloat in times of need.
