Florida’s coastal location makes the Sunshine State ideal for boat owners who want to explore the beautiful Southeastern coastline. But as a boat owner in Florida, it’s important to have boat insurance to protect your investment and yourself. While it may be tempting to skip insurance to save a few bucks, the risks of not having insurance far outweigh the cost of coverage.
Here’s everything you need to know about what boat insurance covers, how much it costs, what affects the cost, and whether Florida requires it.
What Does Boat Insurance Cover?
Boat insurance helps boat owners protect themselves, their boats, and others while on the water.
Boat insurance provides coverage for a variety of potential risks, including:
- Property damage: Covers damage to your boat or another person’s property caused by your boat.
- Bodily injury: Covers medical expenses and lost wages if someone is injured in an accident involving your boat.
- Liability: Covers legal fees and damages if you’re sued because of an accident involving your boat.
- Theft: Covers the cost of replacing your boat if it’s stolen.
Some policies may also include coverage for additional risks, such as damage caused by hurricanes or other natural disasters. Not all policies have the same coverage, so reviewing your policy is vital to understanding what is and isn’t covered.
How Much Does Boat Insurance Cost?
The cost of boat insurance can vary based on several factors, including:
- The value and size of your boat: More expensive and larger boats require more coverage and therefore cost more to insure.
- The horsepower of your boat’s motor: Boats with more horsepower can go faster and are riskier to insure.
- Where you typically use your boat: Boating in congested or hazardous waterways can increase the risk of accidents and, as a result, increase the cost of insurance.
- Your boating experience and safety record: Experienced boaters with clean safety records are considered less risky to insure and may qualify for lower rates.
- The type of coverage you choose: The more coverage you have, the more expensive your insurance will be. However, opting for more coverage can provide better protection in an accident.
On average, boat insurance in Florida costs between $300 to $800 per year. However, you can expect to pay more for coverage if you have a high-value boat.
Boat Insurance Deductibles
Like other types of insurance, boat insurance typically comes with a deductible, which you pay out of pocket before your insurance coverage kicks in. So, for example, if you have a $500 deductible and file a claim for $2,500 in damages, you’ll be responsible for paying the first $500, and your insurance company will cover the remaining $2,000.
Higher deductibles typically result in lower insurance premiums, while lower deductibles result in higher premiums. When choosing a deductible, consider what you can afford to pay out of pocket in the event of an accident.
Florida boat owners should also check if their policy includes a hurricane deductible. Due to the risk of these natural disasters in Florida, insurance policies often have a separate deductible specifically for hurricane-related damage.
Is Boat Insurance Required in Florida?
Florida does not require boat insurance by law. However, if you are financing your boat, your lender may require you to carry insurance to protect their investment. In addition, some marinas and boat storage facilities also require proof of insurance before allowing you to dock or store your boat.
While boat insurance is not a legal requirement in Florida, it’s a wise investment to protect your boat and yourself in the event of an accident. Without insurance, you are personally responsible for damages or injuries caused by your boat, which could result in significant financial losses.
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Florida doesn’t require boat owners to have boat insurance, but it’s still a wise choice as it helps protect you and your boat from damage while on the water.
At Levay Mack Insurance Group, our primary goal is to share our insurance knowledge so that you know what protection you are buying with your hard-earned money. With over 45 years of experience and as one of the largest independent insurance agencies in South Florida, we are proud to offer access to the top-rated carriers in the insurance industry.
Levay Mack has Florida covered from Palm Beach, St. Lucie and Brevard Counties! To learn more about our boat insurance policy options, contact us today for a free quote!