Types of Boat and Watercraft Insurance Coverage

How Much Coverage Do I Need for My Boat or Watercraft?

You’ve finally bought your dream boat and you’re ready to hit the open water! Often, the first question that hit most new boat owners after the first rush of emotions is: "How do I insure my new asset? Is my boat covered under my homeowner’s policy, or do I need separate insurance?" SWH Insurance Agency LLC serves clients in Whitesboro, TX and is here to answer all your boat insurance questions. 

The answer to both of the questions above is it depends. In Texas, most homeowner’s policies do cover damage to your boat, but only to a limited dollar amount. If you have a newer or more expensive boat, it’s wise to get a policy that will cover the full value of your watercraft in case of an accident or other damage. In addition, homeowner’s policies don’t cover liability, so at the very least you will need a separate liability policy to pay for medical bills and damages to other people’s watercraft. 

What Types of Boat and Watercraft Insurance Policies are Available?

In all likelihood, you’ll want to go beyond the bare minimum liability insurance required by Texas state law in order to protect your asset. Also, if you are financing or leasing your watercraft, your lender will have certain coverage requirements you’ll have to adhere to. SWH Insurance Agency offers several types of affordable, full coverage boat and watercraft insurance to make sure our clients are protected: 

  • General "All Risk" Policies An all risk policy is best for boats and watercraft under 27′ and covers a broad range of personal property damages, medical payments, uninsured boaters liability, towing and assistance, persona effects, and accessories. Normal wear and tear, scratches, dents, and manufacturer defects are typically excluded under this type of policy. When choosing an all risk policy, be sure to decide if you want an agreed value policy or an actual value policy. Agreed value policies cover the full cost to replace the boat on the day the policy is put into effect, which actual value policies cover the cash value of the boat at the time of the damage. In other words, coverage in actual value policies decreases over time with depreciation.
  • Yacht Policies You may not think of yourself as owning a yacht, but technically speaking any boat over 27′ is considered a yacht in the boating world. These policies offer all of the same categories of coverage as an all risk policy with higher limits and include additional coverages for larger boats that tend to cruise further and get exposed to more risks. Some examples of additional coverages provided by yacht insurance are hull insurance and replacement costs for partial losses. A yacht policy is a good idea for owners of larger boats who intend to sail longer distances. 

If all of this is beginning to sound too complicated, don’t worry! Contact SWH Insurance Agency LLC and we’ll have you out fishing, sailing, or boating in no time. Your insurance agent will go over all of your options with you and help you choose the right boat or watercraft insurance policy for your needs. 

We’re Moving!

Over the next couple of weeks we will be moving to our new location at 613 N Union here in Whitesboro. For our existing customers you can expect the same great service you have come to rely on with SWH. For those of you that are not yet with us, we will be having a ribbon cutting with the Chamber once we are settled and hope to see you there!

Why would a boat owner need boat insurance in Texas?

The hot summer months in Whitesboro, TX can make anyone want to find a cool way to beat the summer heat. People can do this here by getting a boat and enjoying all of the local lakes. If you decide to buy a boat here, you will need to insure it the right way. There are several reasons why someone in this area of the state will need to get boat insurance.

Insurance Protects Owner

People need to get boat insurance because it can protect the owner of a boat. A boat owner that invests in boat insurance will benefit in several ways. Those who have this coverage will enjoy the protection they receive for their asset and valuable liability protection. This way, you are covered if your boat is stolen or in an accident that results in damage. 

Insurance is Required

You would also need boat insurance because it could be required for you. Many boat owners will take out a loan when they try to buy the boat. If this is the case for you, your boat loan provider will want to know that you have proper insurance in place. This coverage is required as it ultimately protects their loan collateral. 

Boat owners in Whitesboro, TX need to make sure that they get proper insurance. If you are looking for a new insurance plan here, you should call the team with SWH Insurance Agency, LLC. All of the insurance professionals at SWH Insurance Agency, LLC understands the need to have proper coverage. We can help you build a plan to protect your boat and give you peace of mind. Contact our office to speak with an agent about your options.