Top Boat Insurance Claims in Canada
Boat accidents are more common than you think, even if they’re what you’d call boat fender benders. Do you have boat insurance?
Prevention and safety awareness are the best ways to avoid boat insurance claims.
Hitting an object
One of the top boating insurance claims is damage caused by hitting floating or submerged logs, rocks, and other debris, often in shallow water and in low visibility conditions.
Hitting an object can cause minor damage, but it can also cause damage to your boat’s hull, propeller, mechanical failure, or possibly sinking.
Top tips to prevent hitting an object with your boat
- Be cautious in unfamiliar water and slow down your speed.
- Use a navigation chart and depth finder.
- Obey marked navigational aids and buoys, which are specifically placed to warn boaters about potential hazards.
- Maintain your boat’s navigational system if it has one.
- Take someone with you when you are boating to be on the lookout for debris and rocks, especially if you are in unfamiliar water.
Theft when your boat is not in the water
How do you store your boat out of the water? Is it stored in a secured warehouse, marina, or your driveway? What security measures are in place to prevent the out-of-water theft of your boat?
Note that theft can happen when your boat is on its trailer and left sitting in a driveway, for example. A thief could steal any valuables left in your boat and hitch it up and drive away with it.
Top tips to prevent theft out of water
- Remove any valuables from your boat.
- Block your boat trailer with another vehicle in your driveway
- Detach outboard engines and store them separately.
- Install lighting, motion detectors, and an alarm system. Put a good-quality lock on your trailer. Install a GPS tracking device.
Weather-related damage
Weather-related damage typically happens when boats are in severe weather conditions, such as hurricanes, torrential rain, strong winds, or lightning.
Comprehensive boat (more than just liability insurance) insurance typically covers weather-related damage.
Severe weather can lead to a variety of damages ranging from minor to cracked windshields caused by high winds, water seepage due to heavy rain, or even destruction in cases like a hurricane.
Top tips to prevent weather-related damage
- Check your local forecast before going out on the water, including wind speeds, wave height, and any signs of storms.
- If you know that a storm is coming, make sure your boat is secured and covered.
Collisions
Your boat can collide with other boats, the shoreline, or docks and buoys and can cause major damage and potentially life-threatening injuries.
These types of accidents can result from inexperience, lack of attention, alcohol or drug-related impairment, excess speed, poor judgment, or poor visibility.
Top tips to prevent collisions
- It’s important to always prioritize safety. Be aware of your surroundings.
- Do not speed and keep a safe distance from other boats.
- Take a boating safety course.
- Install navigational aids.
Damage from the dock
A miscalculation of how close you are to the dock, excess speed, or strong winds can cause your boat to hit a dock.
Damage from the dock can be minor but it can also cause a hole in the hull or other structural damage, or a bent propeller.
Top tips to prevent dock damage
- Use bumpers or fenders to absorb the impact.
- Practice docking skills on a calm day.
- Use a boat cover to cushion any movement.
Wait, what if my boat sinks?
Boat insurance typically covers sinking if the cause is a sudden, accidental, and covered risk, not excluded by your boat insurance policy. the policy. This would include sinking caused by storms, collisions, or other unforeseen incidents. Read the details of your boat insurance policy.
Did you know? During the off-season, you must protect your boat during winter. If you don’t protect your boat with a quality cover, snow and ice can accumulate and water can pool inside your boat, causing damage and potential mould growth. Do not store your boat in the water.
How to make a boat insurance claim
- Document the incident with photos and videos
- Write dent scene, and any other relevant details.
- Write down the date, time, location, and a description of what happened. Include any relevant weather or water conditions.
- Report the accident to authorities.
- Contact your boat insurance provider without delay.
- Fill out any claim forms provided by your insurance company. Be thorough and accurate.
- Attach all supporting documents, such as photos, witness statements, and the accident report if applicable.
- An insurance adjuster may need to inspect the damage. Cooperate fully.
- Estimates: You may be asked to get repair estimates from approved service providers.
Keep in mind that most boat insurance policies have a deductible. That’s the amount you will need to pay out of your pocket before the insurance settlement kicks in. The deductible is typically subtracted from the settlement amount.
Should I get boat insurance?
Your boat is a significant investment. Boat insurance is not required in Canada, but if your boat is financed your lender may require boat insurance. Many marinas require boat insurance with $3 million in liability coverage.
Boat insurance protects you and your loved ones in the case of a boating accident or injury. It protects your boat and its motor, boating equipment, and boating accessories.
Final thoughts
Boat insurance gives you peace of mind. It protects you and your financial investment in your boat.
5 FAQs about Boat Insurance
What is actual cash value vs. agreed value coverage for boat insurance
Actual cash coverage covers you for the value of your boat at the time of loss, less depreciation. An agreed value policy honours the value of your boat at the time the policy was written.
Does boat insurance cover damage by squirrels?
Your boat insurance can cover rodent damage, but make sure to read the details of your marine policy.
How much is boat insurance?
The cost of boat insurance depends on the age, value, and type of boat that you own. It could be anywhere from several hundred dollars to more than $1000 a year.
Should I get boat insurance quotes?
Yes, you should shop around and get boat insurance estimates from different boat insurance providers to compare prices and coverages.
Should I get comprehensive boat insurance or just liability coverage for my boat?
That depends on how comfortable you are with risk. Liability coverage only for your boat will be less expensive and will cover you in case of an accident, but you wouldn’t be covered for other situations such as storm damage to your boat, theft, and fire. Liability boat insurance only covers your legal responsibility if you cause injury or damage to others while operating your boat.