How to Know When Boat Insurance Is Needed

Step-by-Step Guide

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   Step 1: Understand why you need to purchase insurance for your vessel.

   Purchase boat insurance to protect yourself from costs of unexpected damages beyond your reasonable control.
   
   Realize that boat insurance in not in place to help with the cost of maintenance repairs.
   
   Purchasing boat insurance helps protect you from the expense of unforeseen losses to your vessel, and often depending on your coverage, liability while you are on the water.
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   Step 2: Speak to the representatives from the shop that you are purchasing your boat from.

   Their trained sales associates should be able to answer most questions that you might have in regards to insurance. , Boats are typically water crafts under 26 feet (7.9 m), yachts are 26 feet (7.9 m) or more in length, and personal watercraft include your small vessels and jet skis, as well as wave runners. , This can include checking out information on your state's government website.
   
   The Massachusetts government website, for example, states that boat insurance is not required by the state, but it is encouraged.
   
   They also offer additional information on boat insurance basics.
   
   You might also inquire at the license bureau when you go to purchase the license for your boat. ,, There might be limited coverage available under your homeowner's policy, but that only typically covers around $1,000 in damages if the boat is at your home and generally offers limited liability coverage. , If you hold multiple policies with an agency, they may offer you discounts based on multiple coverage. , Issues that can happen to your boat can include, but are not limited to, natural disasters such as a hurricane, fire, burglary, or liability lawsuits filed by other people claiming that you were negligent.
   
   Make sure that your insurance agent is handling all of these concerns. ,
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   Step 3: Review what type of watercraft you are purchasing before contacting people for information.

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   Step 4: Ask state organizations about the need for boat insurance.

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   Step 5: Think about replacement cost for the vessel if it is to become damaged and/or sink

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   Step 6: and make sure to have all supporting cost documentation available before speaking to your insurance representative.

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   Step 7: Call the insurance agent that handles your home and automobile policies.

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   Step 8: Speak to your insurance agent about what boat coverage they offer.

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   Step 9: Consider your risks and liabilities.

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    Step 10: Get a referral for a company that handles boat insurance if your company does not offer it.

Detailed Guide

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