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Boat and Watercraft Insurance


When the topic of insurance comes up, people usually think of auto, home, life etc…., but there are other kinds of insurance that people are not aware of. There is watercraft insurance to cover boats, there is ocean marine insurance, and even aviation insurance.

Watercraft insurance is sold as a separate policy, or it can be added to a homeowners insurance policy. Since homeowners policies only provide limited coverage for watercrafts, people tend to purchase it as a separate policy.

Boat owner’s policies are available for runabout-type boats, their motors, equipment, and trailers. Boat owner policies are actually very similar to auto insurance policies. Both policies have to cover liability in the event you negligently injure someone or damage their property. This is referred to as bodily injury and property damage liability. In the event that the boat sinks, is stolen, or involved in a collision, the boat itself is covered for physical damage. This physical damage coverage is called Hull Damage. Watercraft policies are designed for watercrafts that are less than 26 feet in length.

Yacht policies are also available, they are written as a type of Ocean Marine insurance. Yacht policies are available for vessels that are 26 feet or more in length. Insured’s will usually purchase a policy that will cover the hull, medical coverage’s for passengers, bodily injury, and property damages. On a yacht policy, this is called Protection and Indemnity. Also purchased on a yacht policy is something called the Jones Act. The Jones Act is a type of Workers Compensation for the crew members on the yacht.

Ocean Marine Insurance is one of the oldest types of insurance. Ocean Marine policies may be written to cover hull damage, cargo, freight, protection and indemnity.

  • Cargo coverage protects the cargo while at sea or on land
  • Freight coverage covers the cost of moving the cargo
  • Protection and Indemnity
  • Hull coverage insures the ship itself

Hull and Cargo coverage can be written to cover the peril of Jettison. Jettison is defines as voluntarily throwing the cargo overboard to save the ship from sinking. The peril of war is also usually covered on an Ocean Marine policy.

Aviation insurance is actually quite similar to Ocean Marine insurance because it provides coverage for both liability and hull damage. Coverage for aviation insurance are usually written as package policies by combining liability to others, medical to passengers, and physical damage for the aircraft itself. Different coverage may apply while the plane is on the ground or when the plane is up in the air.