5 Factors That Limit Boat Coverage Within Your Home Insurance Policy

Do you need separate boat insurance for your watercraft? Some boat buyers and owners rely on the coverage provided through personal property coverage in their homeowner's insurance. But this has many limitations, some of which can only be solved with a specialized boat insurance policy. Here are five of these limitations and what you can do about them.

1. Limits on Value

Boats are generally considered personal property within home insurance policies. However, personal property has limits on how much will ever be paid out. The entire category of personal property has an overall limit (usually a percentage of your structural coverage), but individual categories have additional limits. Many boats' values exceed these limits.

2. Age of the Boat

Do you own or plan to obtain an older boat? Check with your insurance agent about carrier rules regarding aging boats. The higher risk of loss with old boats may make insuring it harder. You may get a better bang for your buck by staying within the right time frame. 

3. Size of the Boat

The bigger the boat, the less likely that the homeowner's coverage will be sufficient. While the rising price and value of a bigger boat is certainly a factor, its size is as well. Homeowners policies aren't designed to cover most vehicles, so they usually cap the length of boats that qualify regardless of value. 

4. Type of Vehicle

Some boats are considered more inherently risky than others. The boat in which you take your kids fishing on the lake probably doesn't add much extra risk of crashes and collisions. However, personal watercraft and speedboats designed to reach high speeds do raise that danger. You'll need a boat policy if these are disallowed, but you may want one in order to increase liability protection anyway. 

5. What You Add

Accessories make boating even more fun. But they also add to the risk of loss if something happens to the boat. As with most vehicles, your personal possessions in the boat — including many aftermarket or connected features — are usually covered by homeowners insurance. But the more you add to the boat, the more you risk reaching limits on that coverage. 

Where to Start

As you assess your current boat and its needs or your plans to buy a boat, consider these important factors. Start by meeting with an insurance agent in your state to learn more about how your particular watercraft needs are — or are not — met by your existing insurance. Make an appointment today so you can get on the water confidently tomorrow.