Do I Need Year-Round Boat Insurance Coverage?

Everyone seems to change their habits with the seasons, even in north Florida where we have long periods of fair weather. There might come a time when you need to put away your boat until fairer weather beckons in spring.

Still, when you store your boat you might wonder how to maximize your savings during this time of disuse. There will be a decrease in some of the upkeep and operating costs on the vessel. Plus, your insurance risks might diminish, too. However, they will only drop by a small amount. You will need to maintain boat insurance throughout the storage period. Here’s a few reasons why.

Financed Boats Require Coverage

When you buy your boat, you might take out a loan which you will pay back to pay off the boat. For as long as you have the loan, the lender might require you to maintain boat insurance. That is because the boat represents an investment by the lender. Any loss to the boat might therefore be a loss to them, too. They want to make sure they receive repayment even following a shipwreck.

Often, you will have to buy physical damage insurance to meet these requirements. The physical damage coverage will pay for the vessel’s damage following collisions or other accidents like fires, weather damage, theft or vandalism.

Continuous Coverage Helps You Financially

There is always a chance that damage could happen to your boat even while you have it stored. As a result, you don’t want a lack of insurance to prevent you from repairing or replacing the vessel. Boats can still face damage risks even when you don’t have them on the water.

Not only that, but if you cancel and then reinstate your coverage, your insurer might begin to view you as a cost risk. Boat owners who go uninsured might represent inconsistency in the eyes of insurers. When they start their coverage again, there is no guarantee that they will qualify for the same affordable premiums.

You Might Not Get Help From Elsewhere

Some homeowners insurance policies cover boats, but only to a very limited extent. There are usually restrictions on the types of vessels they will cover and how much they will pay. Keeping boat insurance is the better solution

One solution to keeping your boat insurance coverage affordable during the off season is to ask your agent if you can reduce certain types of coverage. For example, you might not need collision insurance or medical payments coverage when you are not using the boat. For the time being, you might be able to remove this coverage without terminating your policy. You can then add it back in when the time comes to take the boat out again.