Boat Insurance for Smooth Sailing this Summer

Don't get left dead in the water.
By Juliette Fairley ,

NEW YORK (MainStreet) — This summer, nearly 17 million boat owners and 1.6 million personal watercraft owners will have fun in the sea or a lake but many run the risk of hitting rough financial waters if something goes wrong.

The step son of singer Usher was struck in the head by a jet ski while inner tubing on Lake Lanier a year ago on July 8. Kile Glover's mother, Tameka Foster, was in the process of divorcing Usher and was unable to pay for her son's continued medical care after the family's insurance coverage expired.

Under two weeks after being injured the 11-year-old died.

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"Whether you own a powerboat, sailboat, personal watercraft or canoe, it's smart to review your insurance coverage to determine if you have the right coverages that fit your recreational needs," said Mark R. Desrochers, president of personal lines insurance at The Hanover Insurance Group.

Watercraft coverage can be complicated by many factors, including safety and training regulations that vary widely by state.

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Consider the following before setting sail:

  • 1. Determine whether boat insurance is mandatory in your state. If it's not, purchasing coverage for losses caused by uninsured boaters is wise.
  • 2. Assess the risk of theft or vandalism off the water. An existing homeowners policy may provide a measure of coverage but it's likely to be limited and may not apply at all for damages while stored at your home during winter months.
  • 3. Take a boat inventory. Use video and photographs of the watercraft and store the footage in a place other than your home, such as a safety deposit box or storage unit. A written description, supplemented by model and serial numbers of key mechanical and electronic items is helpful information in the event of a loss or accident.
  • 4. Review your policy annually. Agreed value is applied to newer boats while market value is generally the basis for settling the loss of older vessels. If you had agreed value when your boat was new and have used it on the water for several years, you may be over-paying.
  • 5. Consider a bundled package. There may be a financial advantage to obtaining insurance for a boat or personal watercraft from the same company that insures your auto and home. More insurance companies are offering discounts when a customer maintains multiple policies with the same company.
  • 6. Inquire about an umbrella policy. Boat owners may be advised to consider an umbrella policy in the case of potential loss events that exceed policy limits of the boat insurance and that put their personal assets at risk.

--Written by Juliette Fairley for MainStreet

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