Boat Insurance Policies

Chicago Insurance Advisors

Boat owners need protection the same as automobile owners. Boat insurance provides financial coverage for a boat and its owner if loss occurs. The term "boat" applies to motorized water vehicles, including yachts, fishing boats and jet skis. Boat insurance excludes kayaks, canoes, and paddle boats because they are not motorized. However, a homeowner’s insurance policy may provide coverage for these water vehicles. Boat insurance offers typical coverage, plus specialized coverage for things you might not consider.

Specialized coverage is useful when you’re facing a loss. You might not consider certain things before you’re faced with a claim. But by then, it’s too late to get coverage. That’s why specialized coverage covers things such as wreckage removal and emergency towing. 

Specialized coverage includes:

  1. Disappearing Deductible: Your deductible is reduced by 25 percent each time you renew without having filed a claim.
  2. Emergency towing and labor: Towing services for when your boat is stranded in the water.
  3. Total loss replacement: You receive a new boat of similar quality to the one you lost.

Total loss replacement is for previously untitled boats that are no more than one model year old. Any boat not fitting this description can be insured for actual cash value or agreed value. It is important to understand the specifics of your boat insurance policy. A claim can be difficult to file, so you want to avoid any unpleasant surprises.

Wreckage removal coverage pays a reasonable cost for attempting to move or to move the destruction of an insured boat's wreckage. The limit of this coverage depends on whether the insured is legally required to remove, raise or destroy the boat.

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