Watercraft coverage

Watercraft coverage is an insurance policy type that covers boats, jet skis, and sailboats against physical damage, liability, and theft according to ISO HO-3 Section I. Watercraft coverage pays for repairs or replacement if a boat is damaged by fire, collision, or vandalism as reported by the National Association of Insurance Commissioners (NAIC).

Watercraft liability coverage protects owners from legal costs and damages if they injure others or damage property while operating insured vessels such as speedboats or pontoons. Personal effects lost overboard from insured watercraft–including fishing gear or navigation equipment–are covered up to specified policy limits (e.g. $1,500 per item per Allstate’s standard policies).

Medical payments under watercraft coverage reimburse medical expenses for injured passengers up to set caps such as $10,000 per State Farm marine policies, according to YourInsurance.info. Uninsured watercraft coverage compensates policyholders if hit by uninsured operators of boats like bass boats or wave runners.

Agreed value vs actual cash value clauses determine claim payouts, with agreed value guaranteeing a fixed amount and actual cash value deducting depreciation (Progressive Boat Insurance). Navigation limits apply and restrict where covered vessels may operate–commonly inland waters and within 75 miles of the US coast per GEICO’s guidelines.

Towing and assistance endorsements cover emergency towing and labor costs when insured crafts become disabled on water (typically up to $500 per incident according to Travelers Insurance). Exclusions in watercraft coverage usually omit losses from racing events, wear-and-tear, or damage outside listed navigational areas (as found in Liberty Mutual boat policies).

Insurers require hull surveys for older boats (often 20+ years) before extending comprehensive watercraft coverage per underwriting standards at American Modern Insurance Group.