Nothing is more pleasant and relaxing than a summer spent on the water in your boat. However, matters concerning boat insurance and related coverage can get murky. How much coverage do you need? And is it legally required? To clear matters up, below are answers to some of the most common questions about boat and watercraft insurance.

Frequently Asked Questions About Boat and Watercraft Insurance

Is boat insurance required in Montana?

Unlike auto insurance, the state of Montana does not require operators to purchase boat and watercraft insurance. However, you may have to buy coverage to comply with lender requirements if you financed the purchase. Most marinas also have insurance requirements if you dock your boat for the season.

What does boat and watercraft insurance cover?

Boat insurance covers damage to the boat and to permanently attached equipment due to collisions, storms, fire, lightning, and vandalism. It also covers theft, and it pays for medical treatments and repairs if you accidentally injure someone or damage their property with your boat. You can also buy coverage to pay for treatment of injuries to you, passengers, and guest drivers.

What does boat insurance exclude?

Although exclusions vary by provider, most boat and watercraft insurance policies do not cover damages caused by sharks, insects, rodents, pets, and other creatures, defective equipment, or losses caused by mold. It also does not cover normal wear and tear, including wet or dry rot, corrosion, weathering, marring, scratching, or denting.

How much insurance should you buy?

Recommended limits vary based on the size and horsepower of the vessel, but for large, fast boats, $1 million in bodily injury liability coverage is a strong start. Medical treatments can easily reach six figures for serious injuries, and if multiple people were hurt in an accident where you were at fault, you could face dire financial straits without enough coverage. Additionally, owners should consider purchasing at least their boat’s value in uninsured/underinsured boaters insurance to protect your watercraft against damages caused by other boaters. It covers your losses when the other party is uninsured or has insufficient coverage to pay for your repairs and injuries.

For expert assistance with designing a boat and watercraft insurance policy, contact Grachek Insurance — an experienced, independent agency in Kalispell, MT. They are locally owned and operated and have served Flathead County since 1986. In addition to boat and watercraft insurance, they also specialize in auto, home, renters, business, and motorcycle insurance. Visit their website to learn more about their coverage options, or call (406) 755-4000 to request a quote.