At what point does Boat insurance become a requirement?

For the people of Temecula, CA, the water is a popular place for gathering and engaging in fun activities. People buy or lease boats to enjoy the water. Friant Insurance Agency can help you determine what is best for your boat.

In most states including California, boat insurance is not a requirement by the law as it can be adequately covered by homeowner’s insurance.

If you are buying the watercraft through the bank

There are a few exceptions where boaters may be required to have some form of protection. For instance, if your bank is financing the purchase of your watercraft, you may require insurance. The bank will require proof of insurance for the boat and the policy will primarily need to cover the full cost of the watercraft.

Marinas and ports

Ports and marinas may request you to have your boat insurance before using their facilities. For example if need to moor your boat, you may need to carry a policy with  certain amount of value. 

If you do not have home insurance

Depending on the size, value, and make of the watercraft, most small boats can be covered under home insurance policy.  You can buy insurance for non motorized small boats like kayaks and canoes but if it is under home insurance, the policy can cover the boat if it is damaged around the home property. If it is in the water, it is not covered.

The use of the boat

If you are using the boat for commercial purposes like carrying goods or people, you may be required to have boat insurance to protect your passengers. It is also essential to point that commercial watercraft will also require commercial insurance.

Looking to buy boat insurance? Friant Insurance Agency can help you with that.  Visit us at Temecula, CA today.