What You Need To Know About Insuring Your Watercraft

Do you ever wonder if Quint, from the blockbuster movie Jaws, regrets not insuring his boat? As viewers watch his boat, the Orca, being devoured and destroyed by the vicious Jaws, it’s hard not to feel like he should have been better prepared for this. I mean, they knew they were trying to capture a man-eating shark, so shouldn’t they have seen something like this happening?

While we don’t expect your boat will be destroyed by a shark like Jaws, other unexpected events, such as leaks, contents damage, or wreckage could always occur, so it’s better to be prepared. Consider purchasing boat insurance before you set sail!

What Does Boat Insurance Cover?

The majority of boat insurance policies will cover the cost of replacing the boat and the other equipment used for operation, including the motor, GPS systems, and sails in the event that they are damaged or destroyed by an insured peril. Additional coverage can be purchased for replacing fishing gear, entering tournaments, oil spill damage and roadside assistance when towing the boat.  We also recommend that you talk to your insurance broker about purchasing coverage against damages and injuries caused by boaters who are uninsured, so that you aren’t left footing the bill.

Boat Insurance can cover:

Collision Damage Protection: Includes the cost of repairing or replacing your boat. An extension called Debris Removal Coverage can also be added on to cover the cost of cleaning up the wreckage.

Comprehensive Coverage: Compensates you if your boat is stolen, vandalized or damaged in an accident other than a collision. For example, comprehensive coverage would protect you if someone were to spray paint your boat or take a hockey stick and break the boat’s windows.

Liability Insurance: Your boat insurance policy should also come with liability protection, in the event that some is injured while on your watercraft. Liability protection covers the cost of injury to passengers on your boat, as well as skiers and tubers who are being towed by your boat. The cost of damage to your boat because of theft or total loss of equipment is also covered. Additionally, liability insurance protects you against damage that you cause to another individual’s boat, dock or property, when the claim is directly related to operation or storage your boat.

In some cases your watercraft may be insurable under your home or seasonal home insurance policy, if it’s a kayak, canoe, paddleboat or other watercraft that does not have a motor. However, we recommend purchasing a separate policy to insure your boat properly, because unlike your home, your boat is not stationary so it faces a different set of risks. These risks include salvage work, wreck removal, pollution, and environmental damage, among other things.

What Is The Best Type Of Coverage For My Boat?

We recommend purchasing a Comprehensive or All-Risks Watercraft Insurance policy. This type of policy will protect you against all risks that you choose to list on your policy. Some of the most common exclusions are wear and tear damage, gradual deterioration, denting, scratching, marring, damage caused by animals, manufacturer’s defects (such as defects in design) and ice or freezing damage.

Are There Discounts Available?

Excalibur Insurance represents 15 different companies who offer a wide variety of coverage options, so that all of our customers can have a policy that is tailored to their needs. This means that each company offers unique discounts based on how long you’ve been a driver, when the boat was manufactured, and where you intend to store the boat.

• We also recommend that you take the time to consider what type of boat you’re going to buy, as choosing safety over performance will keep your premium lower. Buying a brand new boat may seem like a great idea, but the higher the boat’s value the higher the insurance premium.
• Some companies also offer a discount if you successfully complete a boat safety course. Similar to a drivers training course, this educational class can help you stay safe in adverse situations.
• Finally, some companies will offer discounts if you have never filed a claim.

You can contact your Excalibur broker at 1-888-298-7343 to see if bundling your coverage is the right option for you. When discussing boat insurance with your broker make sure you explain to them when and how you intend to use your boat, so they can make sure you have the best coverage for your individual situation.

Although boat insurance is not required by law in Canada, we strongly encourage you to research the benefits and consider purchasing at least some form of coverage. That way if something were to happen to your Orca, you’ll be a lot better off than Quint.