Texas Boat/Watercraft Insurance Coverage

Boat/Watercraft Insurance

Do You Need Boat Insurance in Texas?

There is no law that requires boat insurance in the state. While it’s true that many home insurance policies will cover damage to your watercraft, it’s usually only for a limited amount. Home policies also won’t provide you with any liability coverage. This means you should have a separate boat policy to cover your more expensive boat, pay for injuries or damage to others, and provide medical payment assistance. Even though it is not required, if you want peace of mind while you are on the water then boat insurance is just as important as home and auto insurance.

Getting Boat Insurance in Texas

There are different insurance policies that you may want to consider. An agent at Osterts and Associates can help you determine which one is best for your needs. A replacement cost policy will pay for repairs or replace your boat. An actual cash value policy will pay for damage or repairs to your boat, minus depreciation. A boat you got in 2015 may have cost you $40,000 but now it’s only worth $25,000. With an actual cash value policy, you would only get the $25,000 to replace the boat. An agreed-upon amount policy pays to replace or repair your boat at a set value that is found in your policy.

There can also be different types of coverage options. Comprehensive boat insurance will usually cover everything with some exceptions, such as intentional damage or normal wear and tear. A named peril or limited policy only covers policies that are specifically listed. These perils can include collision, lightning, fire, and vandalism. It will be important to understand your policy and read it carefully. There may be limits on your policy if you are using your boat on the ocean. You may also have a layup provision that can suspend coverage during the months when you aren’t going to be using your boat.

Contact Osterts and Associates to get a quote on boat insurance.