How Does Boat Insurance Work in Texas
Whether you’re fishing, skiing, swimming, or just cruising on the water, boat insurance is just as important as any other policy we have. Like homeowners and auto insurance policies, a boat insurance policy protects you from the unexpected. But how does boat insurance work in Texas? What does it cover? Check out our guide to boat insurance in Texas to find out!
Currently, only two states have boat insurance laws—Arkansas and Utah, but not Texas. However, you may still need insurance if you are financing your boat or docking it at a marina. If you are financing, most lienholders require you to carry comprehensive and collision coverage.
In addition, if you plan to dock your boat, some marinas will require you to show proof of Pontoon Boat Insurance in Texas, which comes standard on boat policies. Typically, the comprehensive portion covers events out of your control, such as theft, vandalism, sunken boat, fires, heavy winds, hurricanes, and other weather-related damage. Collision covers damage from boating accidents, such as hitting a dock, a submerged object, or another boat.
Whether you are in the process of buying a brand new boat or are a second-hand one, insurance should be on the top of your mind. Many people assume that boat insurance will be a lot like auto insurance, which is in some cases, but there are Boat Insurance Work in Texas. Regardless, boat insurance is the best way to safeguard your safety and that of your boat when you’re out in the waters.
Does the State of Texas Mandate Boat Insurance?
Texas does not mandate that people having a boat should also have insurance. However, if a federally registered lender has financed your boat, you will need boat insurance because the lender mandates it. If you are buying the boat outright, with money out of your pocket, insurance isn’t mandatory.
Even if you don’t technically need Boat Insurance Work in Texas, it is still good to have because it can help pay for damages to your boat, as well as any damages or injuries you cause to others. Boat insurance covers you in the event of a loss or damage to your boat. It covers most watercraft with motors, including pontoon boats, paddle boats, fishing boats and leisure crafts.
Boat insurance does not usually cover kayaks, canoes, or personal watercrafts. For small watercrafts, you may find limited coverage under your homeowner’s policy. You may also be able to add a special endorsement or buy separate coverage.
What Types of Boat Insurance Coverages Are Available?
While Texas may not mandate boat insurance, there are still quite a few types available. It would be worth familiarizing yourself with them before choosing one.
- Liability coverage – Usually, this will cover you in the event of an unfortunate accident that does damage your boat and any valuables. It will also cover bodily injury and damage to your property. Liability coverage is expensive, arguably the most expensive type, but worth every cent.
- Uninsured watercraft coverage – This policy covers you if your boat was hit by an uninsured boat. The policy will cover the cost of repairs to your boat.
- Physical damage coverages – The policy will cover the cost of physical damage to your boat, including replacing broken parts. It will also cover boat replacement under a covered peril. For instance, if the boat is destroyed in a fire, you will be paid for the damages up to the stipulated coverage limit.
- Medical payment coverage – The policy mainly covers any medical expenses for you and the passengers in the event of a boating accident.
What types of losses does boat insurance cover?
Most boat insurance policies offer protection from many common causes of physical damage, like fires, storms, theft, and Boat Insurance Work in Texas. Depending on the type of watercraft, policies can cover damage to your hull, motor(s), permanent fixtures, sails, and furnishings.
As previously mentioned, one of the most important coverages boat insurance offers is liability insurance. This usually includes property damage liability (damage you cause to someone else’s property) and bodily injury liability (injuries you may cause to others).
Many policies can extend to cover your transportation trailer, but sometimes, this is an additional feature. Make sure to talk to your insurance agent for specifics about trailer coverage and coverage during transportation.
Lastly, it’s also important to consider what body of water your boat is intended for. For example, is your boat strictly used for inland lakes, or do you plan on taking it out on the ocean? Again, talk to your insurance agent as coverages may differ for a watercraft used in the ocean.
Whether you’re fishing, skiing, swimming, or just cruising on the water, boat insurance is just as important as any other policy we have. Like homeowners and auto insurance policies, a boat insurance policy protects you from the unexpected. But how does boat insurance work in Texas? What does it cover? Check out our guide to…