If you own a boat, then you should have boat insurance. Having insurance will provide you with the compensation you will need in the event of a loss or damage to your boat. Certain states require you to have liability coverage for your boat, some marinas require you to have insurance to dock your boat, and lenders will require you to have insurance to take out a loan to buy a boat.
Each boat category has its own type of insurance based on how the boat is used. For instance, insurance coverage for a yacht is different than coverage for a pontoon. Yachts are luxury pleasure boats that have different hull types, they are usually 33 feet or longer, and they can be used as living quarters. The cost of repairing or replacing a yacht can be expensive, so having insurance on a yacht critical. A pontoon is basically a motorized raft that is used on slow moving rivers and calm lakes, and it can hold 12 or more people. Pontoons and other small motorized recreational boats are prone to accidents, so having liability coverage is important to have for this type of boat. Other types of boats that have unique insurance requirements include sailboats, charter boats, powerboats, houseboats, canoes, and fishing boats.
There are three types of insurance policies for boats. Liability insurance covers property damage, bodily injury, pollution, and wreckage removal. Towing insurance is an add-on policy that covers the cost of on-road and on-water towing. On-road towing may be covered by your auto insurance policy, so check your auto insurance to make sure you are not paying for something you already have. The third type of coverage is for commercial boats like offshore and inshore fishing vessels, sightseeing charters, and boat rentals. Always work with an insurance broker who can help you make the decision in choosing the right type insurance for your boat.