If you are shopping for affordable boat insurance or liability auto insurance, regardless if you live in Huntington Beach CA or Orange CA?
If so, you may have personal watercraft that may include, boats, Sea Doos, Wave Runners, and many other types of watercraft’s. Personal watercraft’s are not usually covered by a homeowner or car insurance policy, which is reason you have to buy this policy separately.
Boat and Car Insurance Packages
However, if you do have a car insurance policy with a company who offers both car and boat insurance, it may be a great fit. Discounts are always available if you bundle two policies together.
This makes perfect sense, because providers and companies want to ensure you are going to continue doing business with them so they usually offer even a loyalty discount, or commonly know in the industry as a persistence discount.
Watercraft Insurance Discounts
Just ask what discounts apply if any if you were to buy another policy with the same company. However, you may have a specialty watercraft or boat, and may need additional coverage above and beyond the common policy types.
Not all providers and companies who offer vessel coverage, offer the same coverage and protection on a watercraft or policy.
Some craft companies offer what is called, “a lay away” discount, which means that when your vehicle is used only during certain seasons, weather conditions of certain regions and access with a limited of time.
Why would you want to pay coverage if your boat is being housed for six months until fishing season reopens.
Some policies have special features that can help save you money on your policy. Normally, people will usually have to purchase a special coverage policy through a carrier who specializes in just craft coverage.
The coverage you purchase should cover an injury to you or a third-party, property damage, passenger liability, medical costs, and theft.
The least expensive choice is the state minimum only coverage. This is much like an automobile coverage policy that covers another person in the event of an accident or injury.
Varied Program Packages
Coverage policies can vary among providers but usually covers a set maximum limit payment for an injury to another person and damage to your own or another person’s property.
There will also be a set deductible for medical coverage and theft that is determined by the provider.
There are also providers who offer water sports liability, which covers risks related with recreational activities such as water-skiing.
If you want to ensure that you are completely protected, there are these packages available that will cover up to $1,000,000.
Types of Coverage
There are two main types of coverage found on these type of policies. This coverage can either provide coverage based on the Actual Cash Value of the property, or on the Agreed Amount Value.
Policies based on the Actual Cash Value rely on the current value of the equipment at the time of loss or damage. It will be based on the market value found in watercraft pricing guides.
Agreed Amount Value
The Agreed Amount Value covers policies that are based on the set amount agreed by the client and the insurer.
Your craft will be valued and determined at the time of a claim or loss. It is important to review your policy coverage information to make sure your watercraft will not set you back financially if a loss or claim should occur.
The worst time to find out your policy had provisions or limitations is during a loss or accident. This is why it is important to ask any questions you may have at the time of your quote.
Need a Separate Policy
A common question many homeowners have, is will their homeowners policy cover their water toys. The simple answer is yes, but with gaps in coverage.
A home policy is not built to fully protect your water vessels, but the liability and property structure of the building. If you do rely on coverage for your water vessel from this policy, just keep in mind of gaps in protection.
The type of coverage that you would need to ensure your vessel is protected is similar to that of your personal auto insurance.
Physical Damage Protection
At a minimum, boats and jet skis needs the state minimum coverage and comprehensive coverage. The liability will protect you the insured, if your vessel injures someone or damage property.
The comprehension portion of the coverage will protect your property in case of vandalism, damage or destruction caused by theft or fire.
Depending on the age and value of the craft, you may also want to purchase collision protection. This coverage will protect for damage that may be caused to your own personal property.
Homeowner Package Policy
If you have this policy, then it will provide a very limited craft coverage. As an example, coverage for the physical damage to the craft itself, trailers, furnishings, accessories, equipment and motors is limited to just $1,000 per occurrence.
Not only is this figure a relatively low dollar amount, but this coverage applies only to the named perils in the policy of your home.
So, even if you get the broadest coverage available, it still will not protect your boat for perils of the seas, including wave action, stranding, sinking or capsizing.
This coverage is restricted under a homeowners policy. It will only apply to theft that has occurred at the insured’s home.
If your vessel or trailer were stolen from a lakeside vacation spot, a parking lot in a national park or any place else other than the home on the policy, would not be covered.
Here is an example of coverage gaps and if you did not understand these gaps, you would think your toys were fully protected, when in reality there not.
Liability coverage under your homeowners policy also has limitations. The policy only offers coverage only to a few types of vessels.
For these kinds of vessel that are covered on the policy, it includes coverage for ownership, maintenance, use, entrust the craft by the insured to anyone else, and vicarious parental liability for the actions of a child or minor using the craft.
Excluded vessels, obviously are not covered under this policy. However, you may be able to take up some of the slack in terms of liability coverage via an endorsement to your homeowners policy.
The name of this endorsement is called watercraft endorsement. This endorsement will provide a normal excluded range of state minimum coverage for boats that exceed the power and length limitations under most underwriting guidelines
You will always want to refer to the carrier who is proving coverage to see what height, length or other restrictions apply to their policy programs.
Now on the flip side, you still will not be covered if you were in an official race or practicing for a race, unless your craft is a sailboat. This makes perfect sense for obvious reasons.
Physical Damage Protection
In addition, sailboats and inboard and inboard out-drive powered boats wouldn’t be covered for bodily injury to any employee if that employee’s main job duties pertain to the maintenance or use of the craft.
No coverage would apply if the craft is used to carry people for a fee or while it is rented to to others. This would fall under a commercial package, where a blanket policy for all craft would be applied.
The craft endorsement may solve some of your problems on your homeowners policy but it does not protect against physical damage exposure.
Insurance Services Anaheim
If you should have any questions about “boat insurance coverage”, what specifications and provisions apply to your liability insurance or CA car insurance quotes, then call Target Up Insurance at 800-962-0085!
We are here to help answer any questions you may have regardless if you buy from us.
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