Our boat-iful boat insurance options are a shore thing
Ontario is known for its beautiful freshwater lakes. For many of us, being out on the lake is second nature. Whether fishing, tubing, sailing or taking a nice sunset boat cruise – boating offers something for everyone. Choosing the right boat insurance is almost like choosing the right boat.
Just like when selecting the right watercraft, there are various boat insurance coverage features with slight variations that make all the difference on how the policy responds. Choosing an insurance partner who understands these subtle differences is critical.
How do insurance companies determine the premium for boat insurance?
The insurance premium is calculated on a combination of factors. This includes things like the size of the boat, the horsepower of the engine, the experience of the captain, and anticipated navigational range (are you staying on a small lake or heading out on a voyage through the Trent river system?). Policies also cover loss caused by weather, theft, fire and accidents. There is optional coverage that can include equipment, trailers, passengers, water-skiing and more that contribute to determining the final premium.
Questions to ask when looking for boat insurance in Ontario
Like car insurance, not all insurance policies will replace used parts with new, post-loss. To help keep overall costs down, and thus insurance premiums, many insurers will use aftermarket or rebuilt parts. If this is a concern for you, please discuss with our team of insurance professionals.
There are generally two types of boat insurance policies that will determine the pay-out you receive in the event of a loss. These are Agreed Value and Actual Cash Value.
Both refer to how an insurance company will determine the pay-out. Actual cash value has a lower impact on premium as the insurer will determine the pay-out on the depreciated value. The depreciation value considers the condition of the boat before the damage, re-sale value and the normal life expectancy. Agreed value means the insurer will pay the full value listed on the policy.
Agreed Value is a better option for protecting your investment, but it comes with a slightly higher premium. Our team will be happy to discuss these options to see which best fits your needs.
It is important to protect your watercraft to the best of your ability. Some insurance companies will have related restrictions in their policy wordings that may detail how a boat needs to be protected or stored. Look for ‘Lock Warranties’ and ‘Theft Restrictions’ in your policy. Again, our team will be happy to discuss this in more detail with you.
If you will be using your boat for water-related sporting activities, ensure the policy contains Watersport Liability. We suggest boaters carry a minimum of $1 million in liability coverage but suggest higher limits if you deem the increase in premium affordable.
Unless covered by the insurance policy, if your boat sinks in the lake, you are responsible for the recovery of your boat plus any environmental clean-up costs. We do suggest you look to add environmental liability coverage that includes wreck removal.
Unfortunately, unlike with car insurance, boat insurance is not mandatory in Ontario. As a result, there are a number of boats on the lake without insurance. It is important to consider coverage for uninsured boaters.
Consider if you are hurt by a boater without proper boat insurance, you are limited to that boater’s own financial worth. With uninsured boater coverage, you will be covered up to the specified limit for any injuries caused by another boater without insurance.
Some policies do include coverage for this expense and others do not. Obviously, the peace of mind knowing you can be safely pulled to shore without breaking the bank is nice.
If you are on a small lake with many neighbours and you only take your boat out during the day, you may be able to get a tow from a neighbour. But if you take your vessel out into the middle of Lake Ontario for deep lake fishing, you may really need this protection in place. Talk with our team to see which options best fit your needs.
With a well-designed boat insurance policy for your lifestyle, you can focus on doing what you love… being out on the water enjoying our Canadian weather. Our team of insurance professionals is here and ready to find the right insurance solution for you. Complete the form on this page or give us a call at 1-800-661-5196. We are happy to provide you with a quote.