You're Shipwrecked and Stranded: Do You Have the Right Boat Insurance?

You're Shipwrecked and Stranded: Do You Have the Right Boat Insurance?

As anyone who has ever been shipwrecked can tell you, it’s one of the worst feelings in the world to be stranded on land with nothing but the clothes on your back and the food in your stomach. Luckily, if you have full coverage boat insurance, you should at least be able to replace your boat and resume your travels as soon as possible. But if you don’t, what do you do? What can you take from your boat to get by? Are there any protections in place for you? Can you even make a claim without replacing the boat completely?

What type of cover do you need for your boat

There are three main types of boat insurance covers which are hull and machinery, third party liability, and protect and indemnity. Hull and machinery covers your boat itself against things like sinking, fire, theft, or damage from weather events. Third party liability protects you from having to pay damages if you accidentally injure someone or damage their property with your boat. Protect and indemnity covers you for legal expenses if you get sued as a result of an accident. So, what type of cover do you need for your boat?

General cover

Full coverage boat insurance is important for a number of reasons. First, if you're in an accident, it can help pay for damages to your boat. Second, if your boat is stolen, it can help pay for a replacement. Third, if you have to cancel a trip due to bad weather, it can reimburse you for non-refundable expenses. Fourth, if you have to make a claim for lost or damaged belongings, it can help cover the cost. Fifth, if you need to evacuate due to a natural disaster, it can help with the cost of transportation and lodging. Sixth, if you become ill or injured while on a trip, it can help with the cost of medical treatment.

Third party liability cover

Most people are aware that they need to insure their boat against damage, but many don't realise that they also need to insure against third party liability. This type of cover protects you if you damage someone else's property or injure someone while out on the water.

 If you don't have third party liability cover, or if your policy doesn't extend to water activities, you could be liable for any accident that causes injury or damage. If a friend is injured while on your boat, they may sue you personally in order to recoup their medical expenses, or they may go after their travel insurance provider instead of yours. Either way, it's in your best interest to make sure you have sufficient cover to protect yourself. For example, many boat policies extend additional protection to waterskiing activities but not watersports such as kayaking and canoeing. This might not matter if you don't plan on engaging in those activities while out on the water, but it's still something that needs to be kept in mind when comparing policies.

Inland marine cover

Most people don't think about boat insurance until they need it. That's because a lot of boat owners assume that their homeowner's policy will cover their vessel. Unfortunately, that's not always the case. Homeowner's policies typically exclude coverage for boats, which means you could be left high and dry if something happens to your vessel.

Personal accident cover

If you're unfortunate enough to be involved in an accident that leaves you injured, full coverage boat insurance will help pay for medical expenses, lost wages, and other costs incurred as a result of the accident. 

What does full coverage boat insurance typically cover (three sentences): 

Most policies will cover physical damage to your boat caused by things like fire, theft, or collisions with other boats or objects. Many policies will also provide some level of liability protection in case you're responsible for damaging someone else's property or injuring another person.

Total loss

If your boat is totaled in an accident, your insurance company will pay you the agreed-upon value of the vessel, minus any deductible. While this coverage is important, it's also important to know that it may not cover everything. For example, if you have a loan on your boat, the lender will still be owed money even after the insurance payout. In this case, you would be responsible for paying off the remainder of the loan.

Medical cover

Most health insurance policies will not cover you if you are injured while on a boat. This is why it is important to have full coverage boat insurance that includes medical coverage. If you are stranded on a deserted island, your health insurance policy will not be able to help you. Make sure you are fully covered before setting sail.

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