Insuring Watercrafts 101: Sea-Doos, Boats & More

Summer calls for hitting the water and enjoying the baking sun with our friends and family. If you have a boat, it’s probably the focal point of your kid’s summer experiences. Boats are incredible fun, and they offer us so many chances to make great memories with our loved ones and friends. With all different types of boats out there, there’s so many different ways to enjoy the open water.

Here at Excalibur Insurance, we get to know the needs of our clientele so that we can navigate how exactly to insure their watercrafts. Losing a watercraft might not measure up to the same level of tragedy as losing, say, a home, but it’s still an investment that you and your kids very likely have a lot of emotional attachment to. Boats have sentimental value the same way they have physical, monetary value. If your boat insured, you’ll have protection for your liability risks.

Here’s an Excalibur-made, 101 guide to how to insure your watercrafts.

Insuring via Home Insurance vs Standalone Boat Insurance

With a boat, you’ll have two options.

One: to insure it under your home insurance. Some home insurance providers will extend your contents coverage to include watercrafts that fit within specific dimensions and horsepower. For privately owned, recreational boats, this can be a great option as it reduces the need to have to purchase a standalone policy (which can be more expensive) and, so long as your boat is insurable under your home policy, it just makes everything more convenient.

Two: to insure it under a separate boat insurance policy. Some boats won’t qualify for coverage under your home policy, simply since they do not fit within the requirements to be insured under your home policy. Their horsepower is too great, their value is too much, etc. Some people also choose standalone because it offers great protection for their boats and, if they needed to make a claim, it wouldn’t inadvertently impact your home insurance premiums, too.

Clearly, there’s benefits to both. If you’re unsure of which is best for your watercraft, confer with an Excalibur Insurance Defender. They’ll be able to give you the full list of pros vs cons on insuring your boat under your home policy vs standalone.

Types of Boat Insurance Options to Protect Your Watercraft

Privately owned recreational boats can be insured under a home policy for a specified value or under a standalone home insurance policy, which includes various options.

• Physical Protection Insurance – Your boat may be protected against a broad array of various perils, from collisions with other boats and objects in the water, to damages from hail, vandalism, theft, wild critters, flooding, and so on.
• Loss of Use & Emergency Towing Expense – If your boat is damaged and unable to be used, or if it is written off in a loss and you’re awaiting a replacement, your watercraft insurance may contain loss of use coverage, which provides you with a temporary replacement until you can find a new one/do repairs. Emergency towing expenses may also be included, which cover the cost to tow your boat if it is damaged and unable to be driven.
• Personal Liability Coverage – Your boat insurance should include liability coverage, which protects you against claims of bodily injury and property damage. If you are faced with a lawsuit, it can also cover you for associated expenses. If you are found at-fault, it can offer payment up to the limit that is decreed in your policy.

Is boat/watercraft insurance mandatory?

Boat insurance isn’t mandatory in the same way that auto insurance is, but it can be required if it is docked at a local marina most of the time or if your boat is financed. In these situations, you may be asked to purchase boat insurance. But, if you store your boat in a private boathouse and do not have it financed, it may only be highly recommended. Still, boat insurance can protect your liability risk and preserve you and your family so that you aren’t left facing lofty expenses.

The Cost of Boat/Watercraft Insurance in Ontario

The cost of watercraft insurance varies from policy to policy. You’ll be priced accordingly to the characteristics of your boat and how you use it. Some of these characteristics are defined in our list here. Each insurance company weighs these factors differently.

If your boat is added to your home policy, you may notice a small increase in your premiums. The amount of this increase is also dependent on the list of factors below.

• The length of the boat
• The type of the boat
• The boat’s condition and value
• What waters you frequently navigate, and if you charter your boat
• How often the boat is used and what for
• Where the boat is stored
• Your insurance experience and the loss history of the owner/boat operator
• If you are part of any boating groups or clubs

You may also need insurance for any boat outbuildings that you privately own, or sheds/garages where you store your boat. These will increase your costs as you may need additional coverage to protect these from potential harm.

Excalibur’s Tips for Keeping You and Your Boat Safe

One of the best ways to avoiding having to make claims is to keep you and your boat safe. Excalibur has a couple tips on how best to do that.

1. You may be subject to federal regulations which require you to carry your PCO (Pleasure Craft Operator) card with you at all times you’re using your boat.
2. Always check the weather before you decide to go out boating. Thunderstorms and high winds can quickly end your fun times.
3. Have a plan. Know the waters you’re heading out into. Make sure you tell someone where you’re going and what time they should expect you back.
4. Ensure everyone on board has a life jacket and that the boat has separate safety equipment, such as tools, first-aid kits, safety equipment, paddles, whistles, and flares, etc.
5. Make sure that the boat is filled with gas before departure.
6. Always be responsible and operate your boat sober. Having a drink on the water can be great fun, but oftentimes boats and booze aren’t a great mix. Don’t allow anyone who is drinking to operate the boat.

Other than that, have fun! We hope you enjoy your boat as much as we do ours. Discuss with us anytime you have any questions about your watercraft insurance.