Michigan Boat Coverage on your homeowner’s policy
Does my homeowner’s policy cover my boat? It might. It depends on the size of your boat, your desired coverage, and where and how you store it.
Homeowner’s insurance policies typically allow limited protection for property damage to small sailboats and powerboats with horsepower less than 25 mph. The policy likely will only cover damage that occurs while it is on your property. However, Insurance companies limit coverage for watercraft on a homeowner’s policy to $1,000 or 10% of a home’s property value.
Wind and hail damage claims apply to times when the boat is in a fully enclosed building, such as a shed or garage, on your property. A homeowner’s policy also typically will not include liability insurance for the boat, though you can schedule an endorsement. Theft coverage also may not have coverage. Read your policy – or better yet, ask your agent – to get full details.
The main takeaway is that there is a limit on your homeowner’s insurance coverage for boats.
What insurance covers your Michigan Boat?
A separate boat insurance policy protects larger boats, yachts, and personal watercraft, such as Jet Skis and Wave Runners. This type of policy can cover the craft’s hull, machinery, fittings, furnishings, and equipment, and it provides liability protection that typically is broader than you can get an endorsement.
The types of coverage available if your boat is destroyed?
1) Actual cash value: You could receive replacement costs minus depreciation at the time of the loss. The carrier uses boat-pricing guides to determine the approximate market value of the craft.
2) Agreed amount value: The customer and insurer agree on a set cost for the boat should it be destroyed. The insurance company does not take depreciation, regardless of the age or condition of the boat.
Separate boat insurance policies typically involve coverage for injury, property damage (you run into your neighbor’s dock), guest passenger liability (your reckless nephew wants to drive the boat), medical payments, and theft.
Exclusions might include damage from normal wear and tear, insects, mold, animals (such as sharks and zebra mussels), and defective machinery. There is no coverage for flood damage.
Michigan boat policy discounts
Coast Guard-approved fire extinguishers.
Two years of claims-free experience.
Safety education courses.
Michigan boat coverage:
A Michigan boat policy coverage provides.
- Personal effects and contents coverage: Your boat may contain more personal possessions that are not covered by your homeowner’s policy. Make sure your policy adequately protects your items, especially high-value items such as electronics that might be subject to significant water damage.
- Medical payments and personal liability coverage: Guests who may not have experience boating could cause an accident. Protect them and yourself against accidents.
- Property damage: Think about the damage a mismanaged or storm-ridden boat could do to others’ property. Your property damage coverage should also include fuel-spill liability in case your boat’s tank leaks.
View this post for information on Michigan’s personal watercraft policies.