How to Find the Proper Watercraft Coverage for Your New Boat

Summer's over, and now's an affordable time of year to buy a new boat. You can grab your dream watercraft at a deep discount from boat dealers who need to unload inventory before winter hits and from private sellers who plan to upgrade in the spring. Before you buy your boat, though, use several tips to make sure you can purchase proper watercraft insurance coverage. 

Your auto insurance policy does provide liability or physical damage coverage for your car, but that coverage does not extend to your boat. Purchase a separate policy to guarantee that your boat is covered if it's damaged, stolen or lost.

While your homeowners or renters insurance protects your home, it's not designed to insure certain watercraft. Purchase a boat that's valued over $1,500, longer than 26 feet or more than 25 horsepower, and you'll need a separate watercraft policy.

Because of the risk, some insurance companies restrict the type of watercraft they insure. Ask your agent if they cover personal watercraft like wave runners and jet skis, homemade boat kits or houseboats, or competition fishing or speed boats before you purchase one of these watercraft. 

The boat's age also affects its insurability. Some insurance companies will not insure boats over 15 years old. 

Finally, order a marine survey inspection. It reports any damage or performance issues that make the boat a high-risk and can prove to your insurance company that the boat you want is seaworthy. 

If the boat you really want isn't covered by your homeowners insurance policy or a watercraft policy is too expensive, consider an umbrella policy. It provides additional liability coverage for your boat. Ideally, you'll purchase this policy from the same company that carries your homeowners insurance.