Your Homeowners policy does cover personal property, but what is kept in the home, and not for the full amount it would cost to replace or repair the item in case of an accident or loss. (See the difference between Actual Cash Value and Replacement Cost.) Consider what you own that is not covered by your Homeowners policy and protect those expensive toys from damage that is almost inevitable.
Spring has sprung! Bradford Pear trees have bloomed and boating in East Tennessee is starting to pick up. Like those trees, a day on the water is beautiful, but can be stinky if the wind shifts and an accident happens. If you know, you know.
So, what does personal property include?
The contents of your home are your personal property. This includes furniture, appliances and clothing. Not all personal property is covered. Items more appropriately covered under different forms of insurance may have limited or no coverage for loss. These items include, but are not limited to, money, jewelry and firearms.
“Insurance agents and brokers should work with clients to find a valuable articles policy that offers worldwide protection with no deductible, automatic coverage for new items, and an agreed value feature with a market value enhancement. In the event of a covered total loss, clients will get 100% of the agreed value as a cash settlement, and if the market value of the item has increased, clients may benefit from inflation protection up to 150% of the itemized value, up to the policy limit.”
Laura Doyle, excerpt from the Insurance Journal magazine, August 2020
- Property damage liability—Property damage liability insurance covers the cost of damages to someone else’s property after an accident you cause. In most cases, your property damage will pay out when you are at fault for an accident that causes damage to someone else’s boat or PWC.
- Collision damage—When your boat or PWC is damaged in an accident, collision insurance is an optional coverage that pays the cost of repairing or replacing it, minus the amount of your deductible.
- Bodily injury liability—Bodily injury liability coverage is the part of your insurance policy that pays for the costs associated with injuries to other people involved, if you are found legally responsible for a boating accident.
- Hull coverage—Hull insurance covers any physical damages that occur to your boat and generally includes trailers, equipment, motors, and accessories. Typical claims include fire and windstorm damage.
- Fuel spill liability—A separate policy that separates out fuel spill liability and provides coverage for any fines that may occur from an accident involving a fuel spill.
Here are some tips to ensure that you are getting your money’s worth and keeping your costs down:
- Only buy what you need: There are lots of options out there for marine insurance and many of these policies are custom-written. Ensure that you know what you need so you can avoid paying for features that you don’t require.
- Agreed value vs. Cash value: In an agreed value policy, you are paid a pre-determined value for the vessel in the event of a total covered loss. With agreed value, the insured and insurer agree on the value of the boat upfront. Most agents would recommend this option for a new or late-model boat. As the boat continues to age, look to potentially switch to a cash value option to save on premiums.
- Take a boater safety course: Almost all insurers offer a discount for boaters that have recently completed an approved boater safety course. Take an in-person class or get your boat safety certification online. Check with your insurance agent to see if a discount is offered for your specific policy.
- Spend on safety gear: Insurance companies may cut you an additional discount for having extra safety features onboard your vessel. Check with your insurance agent to see if you qualify for any additional savings.
The 8 Best Boat Insurance Providers of 2021
- Best for Professional Fishermen: Markel.
- Best for Affordability: Allstate.
- Best for Safe Boat Drivers: Progressive.
- Best for Additional Coverage Options: Foremost.
- Best for Policy Bundling: Nationwide.
- Best for Individualized Customer Service: United Marine Underwriters.
- Best for Emergency Services Coverage: State Farm.
The type of boat, its length, and its expected use will largely dictate your boat insurance rates. Whether you have a speed boat, a small fishing boat, or a yacht will make a big difference in what you pay. In general, boat insurance costs typically range from $200 to $500 per year, on average. The amount of boat insurance you may need depends on a number of factors, including the boat’s value, motor size, and age. Like other vehicles, high-performance boats will likely command a higher level of coverage to compensate for the amount of damage they are able to inflict.
Even though Tennessee does not require boat insurance, it is quite useful in the event of loss from theft, fire, storm damage, and many other threats. One of the most convenient ways of paying for your boat insurance is by bundling it with your current auto or home insurance. You can often save a significant amount of money by doing so and all it takes is one loss to more than pay for the difference.
If you plan on keeping your boat at a marina, it’s likely you will be required to carry boat insurance. A marina with multiple docks is a prime spot for large and small vessels to collide and cause damage.
One great hazard—even if you have a solid boat-insurance policy—is damage caused by other, uninsured boaters. So sometimes having uninsured-boater protection in your policy can be as important as protection from liability damage, especially in a state like Tennessee, where boat insurance is not mandated by law.
An important note: Be sure to ask whether tow insurance is covered by your plan. This aspect of boat insurance is often sold as a separate package, but it may not be required if towing is already covered by your policy.
Also, be sure to know specifically where your insurance covers you. Many people don’t know that boat insurance will only cover you in specified waters, so be aware of drifting into international or coastal waters where your insurance may not cover you.
It’s nearly Memorial Day weekend–the unofficial start of summer–and we can hardly wait. Dust off the ATVs and jet-skis, fill the coolers and gas tanks, make sure life jackets still fit, and update your insurance policy today.
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