When you buy boat insurance, the amount of coverage for your boat, motor(s) and equipment is usually determined by your bill of sale. Most insurance companies use your purchase price as the maximum limit of coverage for sudden and accidental physical damage to your boat. It’s important to review the policy exclusions as they will vary from one insurance company to another.
Additionally, you’ll need to determine the liability limit needed to protect you and your assets should you become legally liable for bodily injury or property damage to others. We don’t suggest limits lower than $300,000., and for many boat owners they will desire higher limits of protection. It is relatively inexpensive to purchase $500,000. or greater limits. It’s important to understand that your personal assets may be at risk should your policy limit be exhausted.
If you were in an accident with another boat that caused serious damage, one of the following things would likely occur, depending on the insurance coverage you and the other boat owner have and the laws in your state:
This scenario assumes both boat owners have physical damage coverage and liability coverage.
- If you were at fault and found legally liable, your boat liability insurance would cover the damage to the other boat and 3rd party bodily injury claims up to the limits of the policy.
- Damage to your own boat would fall under your hull/physical damage limit, subject to your deductible.
- If the other boat was at fault and found legally liable, his coverage would pay for your hull/physical damage and bodily injury claims, up to the limits of his policy.
- Keep in mind, that boat insurance is not mandatory in Florida.
- If the other boat was at fault, but did not have boat insurance, or did not have enough to cover your expenses, your uninsured/underinsured boaters coverage may cover bodily injury claims (if you have that coverage in place).
- Damage to your own boat would fall under your hull/physical damage limit subject to deductible
Give ample consideration to your boat insurance purchasing decisions. There are a lot of uninsured boaters in our waterways.
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