Principles of Risk Management and Insurance, 13th Edition

Watercraft Insurance

Millions of Americans own or operate boats for pleasure and recreation. The homeowners policy, however, provides only limited coverage of boats. Coverage on a boat, its equipment, and boat trailers is limited to $1,500. Direct loss from windstorm or hail is covered only if the boat is inside a fully enclosed building. Theft of the boat or its equipment away from the premises is excluded. Also, boats are covered for only a limited number of named (broad form) perils, and more comprehensive protection may be desired. Finally, legal liability arising out of the operation or ownership of larger boats is not covered under the homeowners policy. For these reasons, boat owners often purchase separate insurance contracts that provide ...