What You Need to Know
Mitigating the Unexpected
Unlike auto insurance, Montana does not mandate watercraft insurance for personal boats or other water vessels. However, marinas and lenders may require you to carry insurance, and many boat owners choose to get coverage for peace of mind. Watercraft insurance can protect you from the high costs associated with accidents, injuries, or damages that may happen on the water.
What is Watercraft Insurance?
Watercraft insurance is a general term for different types of policies designed to protect various water vessels. Here’s a quick breakdown:
- Boatowners insurance: For vessels under 26 feet long.
- Yacht insurance: Typically for boats 26 feet or longer.
- Personal watercraft insurance: For recreational vehicles like Jet Skis, Sea-Doos, and Wave Runners.
Types of Watercraft Insurance Coverage
Watercraft insurance offers multiple types of protection that can be tailored to your needs. Here’s a look at what a typical policy may cover:
1. Physical Damage Coverage
Protects your boat from damage caused by accidents, weather events, or theft. This coverage applies whether your boat is in the water, in storage, or being transported.
2. Liability Coverage
If you cause an accident or damage another person’s property while operating your boat, liability insurance helps cover the cost of repairs or medical expenses. This can include injuries to passengers on other boats, damage to other vessels, or damage to property like docks.
3. Uninsured/Underinsured Boater Coverage
Covers medical costs or damages if you are in an accident with a boater who doesn’t have insurance or lacks sufficient coverage.
Covers medical costs or damages if you are in an accident with a boater who doesn’t have insurance or lacks sufficient coverage.
4. Medical Payments Coverage
Pays for medical expenses if you or your passengers are injured in a boating accident, regardless of who is at fault.
5. Fuel Spill Liability
Provides coverage for costs associated with cleaning up fuel spills from your boat, which can be an expensive liability.
6. Wreckage Removal
If your boat sinks or is seriously damaged, this coverage pays for the costs of removing the wreckage to prevent environmental damage or hazards to other watercraft.
Does Homeowners Insurance Cover Boats?
While homeowners insurance policies may include some limited coverage for watercraft, it’s often not enough for serious incidents. Typically, a homeowners policy may cover up to $1,500 for damages to your boat while it’s at your home, and some policies might offer liability protection for certain incidents on the water. However, this coverage is limited and usually won’t cover larger boats or more powerful watercraft.
For full protection, especially for larger boats or high-powered watercraft, you’ll need a dedicated watercraft insurance policy.
Types of Boats and Personal Watercraft Covered
Insurance companies categorize watercraft into three main groups:
- Boats: Under 26 feet in length.
- Yachts: Generally 26 feet or greater in length.
- Personal Watercraft: Jet Skis, Wave Runners, and similar recreational vehicles.
Each type of vessel has specific insurance requirements and coverage options. Whether you own a fishing boat, a yacht, or a Jet Ski, it’s important to get the right policy for your watercraft.
Limitations and Exclusions of Watercraft Insurance
Most watercraft insurance policies come with certain conditions and exclusions. Here are a few common ones to be aware of:
Most watercraft insurance policies come with certain conditions and exclusions. Here are a few common ones to be aware of:
- Wear and Tear: Routine wear and tear, or damage from lack of maintenance, is generally not covered.
- Manufacturer’s Defects: Damage caused by defects in the boat’s design or manufacturing process may not be covered.
- Ice Damage: Coverage for damage caused by ice may not be included unless specifically added to the policy.
- Geographic Limits: Some policies may limit coverage to specific areas, such as inland lakes and rivers, or within a certain distance from the shore.
It’s important to review your policy carefully to understand what is and isn’t covered.
Customizing Your Watercraft Insurance Policy
Watercraft insurance can be tailored to your specific needs. For example, you can add coverage for:
- Watersports Equipment: Coverage for items like skis, wakeboards, and other gear.
- Commercial Fishing Gear: If you use your boat for commercial fishing, you can add specialized coverage for fishing gear.
- Towing and Assistance: Coverage for on-water towing or emergency assistance if your boat breaks down on the water.
Cost of Watercraft Insurance
The cost of watercraft insurance varies based on several factors, including:
- Type and size of the boat
- Location and where you operate the boat
- Your boating experience and claims history
On average, watercraft insurance premiums are about 1-2% of the boat’s market value annually. For example, if your boat is worth $30,000, you might pay between $300 and $600 per year for coverage.
Why You Should Get Watercraft Insurance in Montana
Even though watercraft insurance is not legally required in Montana, it is highly recommended for several reasons:
1. Financial Protection
Without insurance, you could be responsible for covering the full cost of repairs or medical expenses if an accident occurs. Liability coverage ensures you won’t have to pay out of pocket for damages caused to others.
2. Marina and Lender Requirements
Many marinas require proof of insurance before allowing you to dock your boat. Additionally, if you finance your boat, lenders may require you to carry insurance until the loan is paid off.
3. Peace of Mind
Knowing that you’re covered allows you to enjoy your time on the water without worrying about the financial consequences of an accident or damage.
Knowing that you’re covered allows you to enjoy your time on the water without worrying about the financial consequences of an accident or damage.
Conclusion: Protect Your Investment
Boating in Montana offers endless fun and adventure, but it also comes with risks. Having the right watercraft insurance ensures that you’re protected against potential liabilities and costly repairs.
Whether you own a fishing boat, Jet Ski, or yacht, Armor Insurance Agency can help you find the right policy to fit your needs.
Contact us today to learn more about watercraft insurance options and get a free quote tailored to your watercraft!