Boating provides an ideal way to cool down and have fun with family and friends in the summer. However, it’s also necessary to take the proper precautions before heading out on the water. In addition to packing flotation devices and making sure your boat is in good shape, be sure to include boat insurance in your safety routine.

Why Boat Insurance is Important

While boat insurance typically is only required when you have a loan on the vessel, owners can also benefit by protecting their assets from theft, damage, and liability claims. For example, without coverage, you could be responsible for paying a passenger’s medical bills if they’re injured while on your boat. You also run the risk of paying for heavy repairs if your boat is damaged while you’re transporting it on the road, since auto insurance typically only covers the vehicle that’s driving. All of this can be extremely costly without boat insurance.

What Boating Insurance Covers

Like car insurance, liability protection is included with your boat insurance. It protects your property and passengers, and it also covers damage your boat causes to other people’s property. However, this liability protection typically doesn’t cover normal wear and tear, damage from pests and mold, or damaged machinery. According to the Insurance Information Institute, coverage amounts typically start at $15,000 and go as high as $300,000.

Factors that Affect Insurance Premiums

If you’re familiar with health insurance costs, you’ll recognize the method insurance companies use to calculate your boat insurance premium. These premiums rise and fall depending on your deductible (the amount you must pay out of pocket before your insurance starts paying). Depending on the type of claim, boat insurance policies typically include deductibles of $250 for property damage, $500 for criminal activity, and $1000 for medical bills. Other factors that may affect your premiums include the age of your vessel, its value, its model, and where it will be stored. For example, older and more expensive boats typically receive higher premiums.

If you’re looking for boat insurance, life insurance, renter’s insurance, commercial insurance, or other personalized services, contact the team at Financial Strategies Group Inc. DBA Arlene Lear Insurance. With two convenient locations in Bolivar and Humansville, MO, they can help you obtain full protection while lowering your premiums. Call their Bolivar office at (417) 777-3000 or their Humansville location at (417) 754-8377.