Boat insurance policies, often called marine or watercraft insurance, include standard coverage, meaning you’re covered for basic liability.
Keep in mind your insurance rates for watercraft will vary widely based on a number of factors, including the age and type of boat, material of hull (wood, fiberglass), where the boat is used, who’s using it, and any boat safety courses taken.
Standard Boat Insurance Options
Liability: when you’ve caused physical damage to your boat on someone else’s property or your passengers get hurt, liability insurance will help cover the costs.
Physical Damage Coverage: a combined insurance policy or a solo boat policy both involve calculating the value of your boat, motors(s), equipment and trailer after a loss. But, how is it calculated?
- Replacement Cost: in the event of a covered loss, the insurer will pay the replacement cost of the watercraft.
- Agreed Cash Value: the insurer agrees to honor the predetermined value of the boat.
Boat Insurance Protection
There are many options for additional boat coverage in Alberta that is not covered in a standard or basic boat insurance policy.
7 Optional Coverages:
Loss of use: you’re in a bind because you’re on vacation and your boat needs to be repaired or replaced. When you need an alternative boat to water ski or take your friends on a boat tour, the loss of use protection has you covered – if it was an insured loss that caused the repair or replacement.
Additional Living Expenses: this coverage includes any extra expenses that are required (pre-determined in your policy) after an insured loss.
Increased Contents: you can add coverage for your personal belongings, such as sports equipment.
Navigational Extensions: navigational limits are set out as the usage areas of your boat. If you sail or tow your boat beyond these limits, it’s an extra cost.
Roadside Assistance: you have an accident and must leave your boat on the water, or you have an accident towing your cabin cruiser on the way to the lake, you can use roadside assistance as an add-on. It will likely cost more to leave your boat out in the open rather than pay for a tow, which runs upwards of $200, if you don’t have the endorsement set up ahead of time.
Personal Property: includes fishing and water sports equipment. Also includes personal items on board of a yacht, cabin cruiser, or sailboat.