Some folks say one of the best days of a boat owner’s life is the day they buy their boat and the day they sell it. Diehard boaters, on the other hand, probably wouldn’t dream of getting rid of their prized possession. These are the boaters who meticulously winterize their boats each year, making sure they’ll be in top operating condition when spring and warm weather roll around. Even the most diligent boat owners often neglect an important step that falls under the winterizing–the-boat umbrella: protecting their soon to be hibernating watercraft with adequate insurance coverage.
Is Boat Insurance for Winter Really Necessary?
The short answer is, “definitely.” Even when your boat is dry docked, it’s still subject to a number of risks, including fire, flood, and hail damage, as well as vandalism. One study conducted by an organization that tracks insurance crimes concluded another risk actually increases in winter and early spring, when people are least likely to use their boats. That crime is theft. What could be worse than cancelling your basic boat insurance policy to save a few bucks during the off-season, only to find yourself out of luck when someone steals it? Faced with the prospect of buying a new boat out of pocket, the money you saved by cancelling the policy would be inconsequential.
Won’t My Homeowner’s Policy Cover My Boat in Storage?
The short answer to this question is, “maybe, but not fully.” It’s true that some homeowners’ policies provide some coverage for boats; however, if you have such a policy and read it carefully, you’ll probably learn coverage is limited to small low-powered boats and the maximum your policy would ever pay out for your boat is around $1,000. It’s possible wherever you store your boat may have limited coverage in the event of damage, but each business is different. Such a policy would include no liability coverage. If there is any possibility you may take your boat for a spin during winter, you should definitely have insurance to protect yourself in the event of an accident.
The Bottom Line on Off-Season Boat Insurance
It simply doesn’t make sense to cancel your basic boat insurance policy during the off-season. First, it’s not likely to save you a significant amount of money, considering the fact your boat insurance rate is adjusted for seasonal inactivity. In other words, your insurer knows you’ll use your boat infrequently or not at all in winter and should adjust your rate accordingly. Second, insurance is a lot like credit. When you build a solid history of continuous coverage, you qualify for the lowest rates. When you cancel your policy for a few months, insurers consider it a lapse in coverage. When you resume coverage, you may be subject to a higher rate. If you own a boat and wonder if your coverage is sufficient or competitive, contact us at ABCO Home Plus Insurance Agency in Dallas. We’re happy to discuss your needs and provide a rate quote.