Valparaiso First Insurance

Watercraft Insurance

How do I get insurance coverage for my boat?

Most companies provide limited coverage for property damage for small boats such as canoes and small sail boats or small power boats with less than 25 miles per hour horse power under a homeowners or renters insurance policy. Coverage is usually $1,000 or 10% of the home's property value and generally includes the boat, motor and trailer combined. Liability coverage is typically not included, but it can be added as an endorsement to a homeowners policy. You may want to consider purchasing a personal watercraft policy to protect yourself and your water vehicle in the event of an accident.

What is not covered under my Homeowner's Policy?

Larger and faster boats, yachts, and personal watercraft such as jet skis and wave runners require a separate boat insurance policy. The size, type and value of the craft and the water in which you use it factor into how much you will pay for insurance coverage.

What will a Personal Watercraft Policy cover?

• Bodily injury – for injuries caused to another person
• Property damage – for damage caused to someone else's property
• Guest passenger liability – for any legal expenses incurred by someone using the boat with the owner's permission
• Medical payments – for injuries to the boat owner and other passengers
• Theft

Liability limits start at $15,000 and can be increased to $300,000.

Typical policies include deductibles of $250 for property damage, $500 for theft and $1,000 for medical payments.

Additional coverage can also be purchased for trailers and other accessories.

Boat owners should also inquire about special equipment kept on the boat, such as fishing gear, to make sure it is covered and verify that towing coverage is included in the policy.

How can I save money?

Boat owners should also inquire about discounts including:

• Diesel powered craft, which are less hazardous than gasoline powered boats as they are less likely to explode
• Coast Guard approved fire extinguishers
• Ship-to-shore radios
• Two years of claims-free experience
• Multi-policies with the same insurer, such as auto, home or umbrella policy
• Safety education courses, such as those offered by the Coast Guard Auxiliary (http://www.cgaux.org ††), U.S. Power Squadrons (http://www.usps.org ††), or the American Red Cross (http://www.redcross.org ††)

Personal Umbrella

What is a Personal Umbrella Policy?

An umbrella or excess liability policy will provide extra coverage. They start to pay after you have used up the liability insurance in your underlying home (or auto) policy. It is purchased separately, not as part of your homeowners policy. If you own property and/or have investments that are worth more than the liability limits in your homeowners policy, you may consider an umbrella or excess liability policy. In addition to providing a higher dollar amount, they offer broader coverage. You are covered for libel, slander and invasion of privacy, which are not covered under standard homeowners or auto policies.

Why should I purchase an Umbrella Liability Policy?

If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgments against you and your attorney's fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.