Get ready for boating season: Are you covered?

Boating is an ever-growing recreational activity that offers a unique sense of adventure and escape from the stresses of everyday life, allowing individuals to unwind and enjoy the beauty of nature. With advancements in technology, boats have become more accessible, affordable and environmentally friendly, contributing to their increased popularity.

According to the National Marine Manufacturers Association, consumers are continuing to prioritize outdoor recreation in 2023, with all indications pointing to continued healthy demand for boating this year.

Industry perspective also suggests the tides remain high for boat sales, as predictions for boat sales forecast a 2% increase in 2023, compared to 2019 sales.

With its popularity continuing, it’s important for enthusiasts and newcomers alike to understand insurance for boats and the implications associated with boating, as they keep safety top of mind. It is also important to acknowledge the potential risks involved. Accidents, theft, damage caused by natural disasters, and liability claims are common risks associated with boating.

Similarly, inexperienced boaters, unpredictable weather conditions, and equipment failure can pose additional dangers. Understanding these risks can be essential for boat owners to adequately protect themselves, their passengers and their investment. While boat insurance is only mandated in a few states, lenders and marinas typically require coverage for liability and physical damage. Specific coverages may vary depending on factors such as the type of boat owned, its value, the intended use, and personal circumstances, however, there are a few key coverages to consider.

Liability coverage

Liability insurance is a critical aspect of boat ownership that should not be overlooked. It can help owners safeguard from financial liabilities in the event of accidents or injuries caused by their boats for which they become liable. Liability coverage can help boaters protect themselves financially against legal expenses, medical bills, property damage and personal injury claims. Choosing an appropriate liability insurance policy can help protect one’s assets, enabling boat owners to enjoy their time on the water.

Physical damage coverage

Physical damage coverage can insure the boat and its permanently attached accessories and electronics against direct, sudden and accidental damage. This coverage can help pay for replacement of the boat or repairs because of damage caused by many different perils, which typically include collision, fire, theft, vandalism, and damage from severe weather and storms.

Uninsured/underinsured watercraft coverage

Uninsured/underinsured watercraft coverage can help boaters protect themselves if they are involved in an accident caused by another boater who either has no insurance or inadequate insurance to cover losses.

Medical payments coverage

Medical payments coverage generally reimburses medical expenses for injuries sustained by the boater or their passengers, regardless of who is at fault. It can help cover hospital bills, doctor visits, surgeries, and other medical costs resulting from a boating accident.

Personal effects coverage

Personal effects coverage can provide protection for personal belongings that are on board the boat, such as fishing equipment, clothing and portable electronics. It helps cover the cost of replacing or repairing these items if they are damaged, lost or stolen.

Towing and assistance coverage

Towing and assistance coverage can help pay for emergency services, such as towing, fuel delivery, or on-water assistance if your boat becomes disabled.

It’s important to note that these are general types of boat insurance coverage, and the specific terms, limits, and options can vary between insurance providers. Boat owners should check specific policy terms to determine what is covered and what types of exclusions or conditions may apply. It is advisable to consult with an insurance agent knowledgeable about boat insurance to help understand the coverage options so that owners can determine the appropriate coverage based on their individual needs and circumstances.

As boating continues to capture the hearts of enthusiasts, reviewing their policies, understanding the insurance risks associated with boating, and the significance of the various coverage options available is important for safe and responsible enjoyment. By prioritizing education, safety and protection, boaters can navigate the waters with confidence, ensuring memorable experiences while minimizing potential risks.

David Knapp is the Director of Product Management for Farmers Specialty Lines. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views or positions of the author’s employer, organization, committee or other group or individual.

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