Typically the watercraft’s shown above are not going to be covered under your home owners policy. Usually you will need to have an endorsement to your current homeowners policy to cover the watercraft or have a watercraft (boat) policy. However, most policies will have some coverage for boats under their regular Homeowners Policy. It is usually subject to Special Limits of Liability. This is where the insurance company will tell you the maximum amount they are going to cover for a specific item. On my Homeowners Policy it states the following:
Special Limits of Liability. These limits do not increase the Personal Property limit. The special limit for each of the following categories is the total limit for each loss for all property in that category.
$1,000 on watercraft of all types and outboard motors, including their trailers, furnishings and equipment.
What that means is the most my insurance company is going to cover for my watercraft on my Homeowners Policy is $1,000. Keep in mind, you are still going to have to pay your deductible. Most people have a $500 or higher deductible. If the value of your boat is more than the special limit, sometimes they will absorb your deductible. Here is an Example: If your $3,000 boat was stolen from your home and you have a $500 deductible your most likely going to get $1,000 for it. Because you’re really out $2,500 after you pay your deductible. Most of the boats pictured above cost well above $1,000 and by the time you add in the outboard motor, trailer and equipment you can be close to $10,000 or more on certain types of boats.
The types of boats that are usually covered on your Homeowners Policy are Row Boats or Canoes or boats with less than 25 total horsepower.
You will want to check with your insurance agent about a Watercraft policy or an Endorsement to your current homeowners policy.
There are two types of coverage you will want to consider. Liability Coverage and Physical Damage Coverage. Physical Damage is going to cover the damage done to your boat or if it’s stolen and will have a deductible. The Liability Coverage is going to cover the Personal Liability & Medical Payments to Others and will not have a deductible. You will want to look at your homeowners policy for the exact specifics on the coverages because they can differ from each Insurance company. You will usually find it under the Section II – Liability Coverages Section of your Homeowners Policy. You will also want to look under your Section II – Exclusions section as well. Because this is where they are going to take the coverage back away.
Here are the definitions from my Homeowners policy:
Coverage L – Personal Liability
If a claim is made or suit is brought against an insured for damages because of bodily injury or property damage to which this coverage applies, caused by an occurrence, we will:
1. pay up to our limit of liability for the damages for which the insured is legally liable; and
2. provide a defense at our expense by counsel of our choice. We may make any investigation and settle any claim or suit that we decide is appropriate. Our obligation to defend any claim or suit ends when the amount we pay for damages, to effect settlement or satisfy a judgment resulting from the occurrence, equals our limit of liability.
Coverage M – Medical Payments To Others
We will pay the necessary medical expenses incurred or medically ascertained within 3 years from the date of an accident causing bodily injury. Medical expenses means reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices and funeral services. This coverage applies only:
1. to a person on the insured location with the permission of an insured;
2. to a person off the insured location, if the bodily injury:
a. arises out of a condition on the insured location or the ways immediately adjoining;
b. caused by the activities of an insured;
c. is caused by a residence employee in the course of the residence employee’s employment by an insured; or
d. is caused by an animal owned by or in the care of an insured;
Here is the Exclusion listed:
Coverage L and Coverage M do not apply to:
(I’m going to skip the the part that applies to watercraft’s:)
e. bodily injury or property damage arising out of the ownership, maintenance, use, loading or unloading of:
(3) a watercraft:
(a) owned by or rented to any insured if it has inboard or inboard-outdrive motor power of more than 50 horsepower;
(b) owned by or rented to any insured if it is a sailing vessel, with or without auxiliary power, 26 feet or more in overall length;
(c) powered by one or more outboard motors with more than 25 total horsepower owned by any insured.
(d) designated as an air boat, air cushion, or similar type of craft; or
(e) owned by any insured which is a personal watercraft using a water jet pump powered by an internal combustion engine as the primary source of propulsion.
So there you have it. They are excluding all Jet Ski’s/Personal Watercraft’s, Boats with 25 Horsepower or more, sail boats longer than 26 feet and of course air boats/racing boats etc. So if you own any or all of these you would need to get a Watercraft (Boat) Policy or need to add an endorsement to your current Homeowners Policy.
Source by Kristi Lusk
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