If you own a boat, you'll need to get some kind of boat insurance. The coverage you need may depend on several factors, such as where you store the boat and what you use it for.
To make sure you're adequately protected, follow this quick guide to determine what type of boat insurance you may need.
Some boat insurance policies offer very limited coverage for small boats without engines. You should check your PDS or call your insurer to see if this is something that is included in your policy.
Even if you are covered, it is most likely only for damage that occurs while the boat is on your property. The type of damage that is covered may be limited, and you may not be insured while on the water. The best option is to take out a separate policy for your boat.
You may question whether it is necessary to insure your boat during the months you don't use it. Even though it is not in the water, your boat is still vulnerable to damage, theft, or vandalism while in storage. Not all policies may cover your boat while it is out of the water, so be sure to check the PDS and talk to your insurer about your options.
There are several things to consider when shopping for boat insurance. Homeowners' policies have limits on boat value or horsepower, and they also have size limits.
Nowadays, boats without masts are called yachts. Whether a boat is considered a yacht or not is based on characteristics like size, value and attitude. For example, your boat may only be 27 ft., but if it has a varnished mahogany hull, it has the right look to be considered a yacht. The bottom line is that a boat that's worth quite the investment should have its own insurance policy.
Many modern boats have additional safety features such as GPS systems and life preservers. If you have this equipment on your boat, you may be able to get a discount on your boat insurance. Keep in mind that not all safety features are required.
You may want to do your research to determine if your safety features are needed to lower your boat insurance rates.
Generally speaking, the larger a boat and the more expensive, the higher the insurance premium. Insurance companies consider certain boats to be a greater risk than others.
If you have a boat, it is vital to insure it before taking it out on the water. You may want to take all necessary steps to protect your investment and know that, if anything were to happen, you could be covered.
Insurance can be a tricky thing to understand. With so many different types of policies and different factors to consider, it can be difficult to know exactly what to get. Remember, insurance is not one size fits all. It is best to do your homework and ask questions before buying anything.
Find the right coverage for your boat, and have peace of mind on land and sea! Let our insurance brokers in Sydney guide you towards securing your investment. Get a quote today!
Disclaimer: As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
