How to protect yourself and your family if you own a boat!
When you think about buying a boat, probably the last thing on your mind is insurance. But of all the money you're going to spend on your new investment, boat insurance may be the smartest dollars you can spend in the long run.
After a home and your vehicle, a boat may very well be your most valuable asset. Sure, you can choose to own and operate your boat without insurance (although most marinas won't let you dock your boat unless you've got insurance), but is that a wise decision?
Most Kokomo Indiana homeowner's insurance policies typically include a certain amount of coverage for watercraft, but the coverage is usually very limited. Home insurance policies normally pay up to $1,000 if something happens to your boat, but the damage has to occur while the boat is at your residence. Additionally, homeowner's policies may offer some limited liability coverage for when you use your boat, but it's less than ideal.
Boat Insurance Options: How to Choose
Boat insurance policies in Kokomo Indiana typically place watercraft into three categories:
- Boats: Watercraft generally between 16 feet and 25 feet, 11 inches in length
- Yachts: Anything over 26 feet long
- Personal watercraft: Jet skis, wave runners, and other small recreational vessels
Each class of watercraft requires its own unique boat insurance policy. As with many other types of insurance, boat insurance policies can vary significantly from company to company. If you're on the market for boat insurance in Kokomo Indiana, comparing different companies' policies can be tricky. Always be sure to read each policy very carefully.
Some insurance companies refuse to cover personal watercraft unless they're included as part of a larger policy. Your boat insurance policy should include comprehensive coverage for injuries for all passengers, the boat itself, liability and theft.
According to the Insurance Information Institute, an insurance policy for a 25-foot speedboat worth approximately $25,000 would cost between $500 and $900 for physical damage, in addition to about $5,000 for liability coverage. While these rates may seem exceedingly high, it's important to remember that speedboats are some of the most expensive vessels to cover. A similarly sized sailboat with roughly the same value might cost 25% to 50% less to cover. Just as sports cars are more expensive to insure than sedans, speedboats cost more to cover than sailboats.
Insurance for Powerboats, Sailboats
Standard insurance policies for powerboats and sailboats typically cover damage to the vessel, such as that caused by fire, lightning, vandalism collisions or windstorms. Coverage is usually available for the craft itself, as well as for the motor, trailer, and personal property that is part of the normal operation of the boat. Some companies offer additional insurance for fishing equipment.
- Replacement Cost - Where the insurance company will pay you the cost of your boat or buy a similar vessel.
- Agreed Value - Where you and the insurance company agree in advance what the settlement value be in the event of a total loss.
- Actual Cash Value (ACV) - Where you and the insurance company will pay the fair market value of the boat at the time of the loss up to a specified rating base.
Like all yacht owners, you heed the call of cruising to exotic destinations in luxury and style. Your yacht is your ticket to freedom and your home away from home, but it is also a major investment. At Killingbeck Insurance, we can help protect that investment with yacht insurance tailored to suit your individual needs.
Whether you own a motor yacht, cruiser, sportfish or mega yacht, you deserve insurance suited to meet your specific needs. Killingbeck Insurance is dedicated to providing you with the best possible yacht insurance, and giving you the coverage you need to feel secure whether you're on or of the water.
How much boat insurance do I need?
There are many factors that go into determining the type of boat insurance you need in Kokomo Indiana - the amount of coverage you require, your vessel's location, usage, size, age, as well as ownership and operating experience. Price is not always the most important factor to consider when purchasing boat insurance. Unlike home and automobile insurance plans where the majority of companies offer the exact same coverage, boat insurance varies significantly from company to company. While the amount you pay for boat insurance should always be a major consideration in your choice of a protection package, it is just as important to consider the types of losses covered, how much you will collect in the event of a loss, what assistence is available in an emergency, and what level of service you will receive. As a new boat owner, you should always select a boat insurance company that meets your specific needs.
Need more info? Contact us today!
For a FREE QUOTE from Killingbeck Insurance, fill out our confidential contact form or call us at (765) 452-8000 to speak with our boat insurance specialists today. Our team members pride themselves in offering superior customer service to members of the boating community, and our industry-leading experience ensures that you'll get all the Kokomo Indiana boat insurance coverage you need in a policy specifically tailored to your requirements.