According to the U.S. Coast Guard, 4,730 boating accidents involving 736 deaths were reported in 2009, with the price tag of recreational boating accidents estimated at $36 million per year. Factor in that more than 80% of all boating accidents go unreported and the level of risk is astoundingly high.
While it seems natural for boat owners to want to protect themselves, a study conducted by a national insurance firm revealed that one-third of all boat owners in this country don’t carry a separate watercraft policy – likely because they are under the incorrect assumption that their boat is covered by their personal auto or homeowner’s policy.
The standard auto policy covers a boat trailer for liability, with the option to add coverage for physical damage; however the boat itself is not covered for liability or damage.
Some homeowner’s policies offer coverage for physical damage to small boats, with a special property limit of $1500 on watercraft, nowhere near enough to equal the dollar value of most boats.
To drive home the potential enormous impact in the absence of watercraft insurance, the Institutional Risk Management Institute (IRMI) has created a list of scenarios that demonstrate the need for specialized boat owner’s coverage:
• Your expensive fishing boat is stolen from your home
• Your 27-foot-long sailboat is damaged by a hailstorm while docked at the marina
• Your sport fishing boat is struck by lightning, incapacitating its electrical system
• You negligently cause another boat to overturn to avoid a collision
These are just a few probable scenarios that illustrate the need to factor in insurance costs when purchasing a boat.
About Amity Insurance
Amity Insurance Agency, Inc. is a full-service agency dedicated to meeting your business, professional and personal insurance needs.
Amity Insurance is licensed in most states. The agency maintains headquarters at 500 Victory Road, North Quincy 02171. For information on products or services, please visit www.amityinsurance.com or call (800) 940-4010 to schedule a free analysis of insurance needs.