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Home Policy or Marine Policy?

Marine Insurance

Difference between watercraft coverage on Marine Insurance policy  and coverage for a watercraft on home or cottage policy.

Often boat owners add their watercrafts to their cottage and home policy without realizing that there is marine insurance available that may cover many of the exclusions on a cottage and home policy. There are often  limitations related to your boat on your homeowners policy and it is important to discuss this with your broker prior to making a decision.

Home insurance policies may not cover items such as, vandalism, collision, fire, theft, watersports liability, loss of use, accidental pollution liability, emergency towing, vermin damage, wreck recovery, or personal items coverage.

Most home insurance policies will only have an actual cash value settlement, and may not cover your watercraft for the originally agreed upon value. Actual Cash Value (ACV) is a method of valuing insured property, or the value computed by that method. Actual Cash Value (ACV) is not equal to replacement cost value (RCV). ACV is computed by subtracting depreciation from replacement cost.

A specialized marine policy will have better coverage for boat related incidents such as wreck recovery or accidental pollution liability. Most home policy’s will not automatically include this coverage.

At Sentinel Risk Insurance, we can help evaluate the best liability coverage. Often home policies can limit the liability on your watercraft.

A claim on your boat can impact your home policy if insured together. If you have any home insurance claims free discounts, a boat insurance claim will impact your discounts and can often subject you to a higher deductible and even threaten your eligibility for cottage and home insurance.

Are you considering taking you watercraft south? Home and cottage policy’s will generally not cover you while you set sail to the south. A marine insurance broker is able to help you customize your policy and ensure you have the proper coverage while on vacation in the south.

Do you use your watercraft for business or charter? Boat insurance requires different liability coverage for any boats used for business. Many different risks can arise and it is important to discuss with your broker.

Before making a decision on how to insure you watercraft. Consult with a broker at Sentinel Risk Insurance Group.

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