It’s going to be a warm September weekend in Rogers, Arkansas, which can mean only one thing: it’s time to get out on the water! Whether it is a fishing boat, a yacht or anything in between, you may have questions on how you can be best protected as you set sail.
Here are 5 common questions watercraft owners have about boat insurance.
Do I need boat insurance?
Boat insurance is mandated by the state, so it depends on your location. While each state has different requirements, Arkansas requires boat owners to have insurance. Only if the vessel has an engine with 50 horsepower or more. If yours meets that standard, you must have liability insurance worth at least $50,000 from an insurance provider licensed to write in Arkansas.
Plus, some marinas require boat insurance just to use their facilities. It is better to be safe than sorry! While some homeowners’ policies provide coverage for boats. However, it tends to be lacking for larger, motorized boats. Also, many homeowners’ policies will only cover your boat if it happens to be damaged on your property, not in the water. If you have a boat larger than a canoe or kayak, we recommend insuring your vessel with a separate insurance policy.
Are there types of boat insurance?
There are two basic types of boat insurance – Agreed Value and Actual Cash Value. What sets these two apart is how depreciation is handled. With Agreed Value, your boat is covered based on its value agreed upon when the policy was written.
While it’s possible that this could cost more upfront, there is no depreciation for a total loss of the boat. Actual Cash Value coverage will cost less upfront, but this policy does factor in depreciation. In other words, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss. Since each provider is different, confirm how the coverage value is determined by the company you are shopping with.
What does boat insurance cover?
Like with auto or homeowner’s, you have many options when it comes to having boat insurance! Some policy add-ons include:
- Roadside assistance and on-water towing
- Coverage for fishing equipment or carry-on personal property
- Mechanical breakdown coverage
- Ice and freezing damage coverage
- Trailer trip interruption
What losses are covered by boat insurance in Arkansas?
Damage to your boat
One of the main reasons boaters purchase insurance is to protect their investment. Boats can easily sustain damage, between docking, launching, or unfamiliar waters. Whatever the case may be, most policies will provide coverage for the damage sustained by your vessel.
Damage caused by your boat
In most cases, your policy will be able to cover damage caused by your boat. This is why our insurance advisors at G&G Independent Insurance recommend all boaters consider insurance. Your boat does not have to be expensive to cause extensive damage! Whatever may happen, you will be glad you purchased insurance.
Injury due to your boat
Liability coverage protects if a passenger or other boater is injured. Liability also protects against costs if you are responsible for property damages or injury to someone other than yourself or a family member. This is the “just-in-case” component of the insurance policy that could be needed. What if a passenger was injured trying to jump a wake on skis, or if someone fell between your boat and the dock while boarding? Something you hope will never happen, but you will want to have these situations covered!
What are some claim examples you can file on your policy?
While paying on claims is based on your policy’s coverage, there are some common claims that insurance companies receive for boats.
When your boat is struck by underwater elements
Underwater hazards are not only common, but they pose a significant risk to your boat. These occurrences are prevalent not only in Arkansas but in other states as well. However, if you have comprehensive collision coverage, you can rest assured knowing your boat is covered, that way you can claim if your boat happens to face damage from underwater objects.
When a collision occurs
Even though school is starting back up here in Rogers, Arkansas, there’s still plenty of time to enjoy the water. As the summer season winds down, lakes are filled with boaters soaking up the last weeks of warm weather. With so much activity, accidents are bound to happen.
If your boat is involved in a collision, having collision coverage on your policy means you can file a claim. At G&G Independent Insurance, we offer coverage that typically protects you against collisions. Whether it’s a minor fender-bender or more severe damage, your policy should help cover the costs of repairs.
Read more about handling boat insurance claims after an accident to learn what steps to take when your boat is involved in a collision.
When your boat is damaged by weather
Extreme weather conditions can also wreak havoc on your boat. Whether it’s lightning, wind, hail, or severe storms, your vessel is at risk. Fortunately, if your policy includes weather damage coverage, you’re protected. In the event of a storm, you can file a claim to cover any damage sustained due to extreme weather.
If you’re looking for boat coverage in Rogers, Arkansas, or just have questions about insuring a boat, contact G&G Independent Insurance today at 479-802-0086.
For more details, take a look at this guide on buying boat insurance.
