Boat Insurance FAQ's
Common questions from Harbour Insurance Services customers
- Do I have to get marine insurance for my boat?
- How much boat insurance do I need to get?
- How much will my boat insurance premium be?
- How can I save money on my marine insurance premium?
- What is the difference between Actual Cash Value and Agreed Value?
- Can I insure my boat for travel to Florida or the Caribbean?
- Can I charter my boat?
- What is a survey and do I need one to get boat insurance?
- What does Medical Payment coverage include?
- Do I have to insure my boat?
- What should I look out for when shopping for marine insurance?
- Can I buy just liability insurance coverage?
Q. Do I have to insure my boat?
A. You are not legally required to insure your boat. However, if you are financing the purchase of your boat, the lender will most often require insurance coverage listing them as a loss payee to cover their interest in your boat. In addition, most marinas now insist that boaters maintain insurance on their boats when mooring them at the marina.
Q. What amount of insurance should I buy?
A. There are two coverage’s important to insuring your boat, Hull & Machinery (your boat and attached equipment) and Protection & Indemnity (Liability)
Insure your boat (hull & machinery) to the current market value. This will ensure that in the event of a total loss to your boat, you will recover what the boat is worth.
Liability coverage protects you for at fault property damage and bodily injury claims. The coverage has three key components. It will investigate your loss, defend you if you are not at fault and pay up to the policy limit if you are at fault. The recommended limit is $2 million.
Q. How much will my boat insurance premium be?
A. Many factors determine what your boat insurance premium will be.
- The value of the boat
- The area of navigation
- The experience of the boat owner/operator
- The use of the boat
- The loss/claims history of the owner/operator
For more information or an insurance quote, please contact our Marine Specialist or click here to request a quick insurance quote
Q. How can I save money on my boat insurance premium?
A. You may qualify for a discount on your marine insurance premium if you:
- Have taken courses and/or are a member of the Canadian Yachting Association or the Canadian Power & Sail Squadron.
- Insure your boat at market value.
- Consider higher hull & machinery deductibles.
Request a boat insurance quote from Harbour Insurance Services Ltd. today!
Q. What is the difference between Actual Cash Value and Agreed Value?
A. When a claim is settled on an Actual Cash Value basis this means that the Insurance Company will apply full deduction for depreciation.
Agreed Value means the Insurance Company will pay you the agreed upon insured value should you suffer a total loss to your vessel. No depreciation is taken.
Q. Can I insure my boat for travel to Florida or the Bahamas?
A. Yes. Our marine insurance policies can provide extensions of coverage for southern navigation, and inter coastal waterway cruising for pleasure craft. An insurance premium surcharge and certain coverage conditions apply. Approved hurricane plans are required if you are travelling between June 1st and November 15th. Contact your Harbour Marine Specialist to discuss such planned travel.
Q. Can I charter my boat?
A. Yes, usually for an additional premium and under certain conditions. You can charter your vessel for activities such as fishing and sightseeing provided you are always the skipper, on board and in command of the boat.
Q. What is a survey and do I need one?
A. Boat surveys (inspections) provide details on the condition and valuation of a boat. A survey may uncover hidden defects, mechanical and structural problems that are not always visible or detectable by the boat owner/operator. Before purchasing an older boat, you should always get a boat survey.
Boat surveys for insurance purposes are usually required on the 15th year of a boat and every 5 years thereafter. If you need to get your boat surveyed, please refer to our list of surveyors.
Q. What does Medical Payment coverage include?
A. The Medical Payments coverage is intended to protect your passengers from incidental medical expenses for accidents that occur while on your boat. If the medical expenses exceed the limit of $5000 then your passenger would look to your liability or Protection & Indemnity (Liability) coverage for further payments.
Q. Do I have to insure my boat?
A. No, you do not have to insure your boat. However, most marinas now require proof of insurance before they’ll let you in.
Q. What should I look out for when shopping for marine insurance?
A. Insist upon an “agreed value” policy and an “all risk” policy.
Q. Can I buy just liability insurance coverage?
A. We cannot insure your vessel for liability only, it can only be offered provided the vessel is covered first for physical damage.
