Insurance for a non-motorized watercraft?
Do you love sailing on the open water? Are you interested in purchasing a small non-motorized watercraft to enjoy some fishing? How would you go about insuring one of these small boats? Do they require a separate insurance policy? What happens if something gets stolen?
In this post, we’re going to dive deep and find out!
Is boat insurance mandatory?
Though boat insurance is not required by Canadian law, it may be required in some circumstances. In any case, having some protection will give you peace of mind and will protect you against liability for passengers on board, tubers or skiers being towed or others in the water who may jump off for a swim.
Boat insurance protects you against damage, theft, loss for the boat itself, and any attached equipment. The liability also extends to any damage caused by your boat to someone else’s property.
Kayak and canoe
Kayaks and canoes can usually be insured on a traditional homeowners policy, which can be attached to your seasonal or secondary property – such as the cottage where you keep your boats.
In fact, you should check your policy first to see if you’re already covered for $1,000 to $1,500 pertaining to the loss of “watercraft and accessories.” This protection will cover a kayak or canoe up to that value.
Although most motorized watercraft are excluded from a standard homeowners policy, non-motorized watercraft – 26 feet and under – are usually covered.
Sailboat
The difference between a sailboat’s optional insurance and a kayak’s or canoe’s is definitely its size and value. Since most homeowners policies will extend their coverage up to $1,500 for watercraft, if your sailboat costs more than $1,500, you’ll want to seek additional coverage.
What if my small boat is worth more than $1,500?
In the case where you want to insure an expensive kayak, sailboat or canoe worth above and beyond $1,500, it’s recommended you treat it as a “scheduled watercraft” where you itemize its specific value.
Essentially, you’re treating the kayak or sailboat as if it is an expensive jewelry item or piece of fine art. These items are traditionally excluded from standard homeowners insurance.
How is my boat insurance calculated?
The same factors that go into calculating your home insurance will go into calculating your boat insurance. Variables include the size of the boat, the value of the boat, the location where you use your boat, its motor size (if any) and others. If you’re not going to be towing anyone on your sailboat, make sure your policy reflects it more as a leisure watercraft than one used for watersports.
What’s covered?
For the non-motorized watercraft below $1,500 – the one that you may not need to take out an additional rider for – you will be covered against the same perils that your homeowners policy covers against. Most commonly, these perils include fire, physical damage, smoke and theft. Expensive kayaks and water-safety gear are stolen more often than you think.
For vessels scheduled above $1,500, you will be able to choose the perils covered by the additional policy. You will also have to specify whether the watercraft is insured for replacement or actual cost value. Your deductible will still come into play, meaning that if your $900 kayak encounters a total loss and your deductible is $500, you’ll only be reimbursed $400.
Protect your watercraft form seasonal damage
You always want to keep your watercraft in safe places, locked in storage sheds, or at your primary property during the winter months. If you’re leaving your watercraft at your seasonal property, it’s best to find out beforehand if any winter damage will be covered by your policy.
If you’re planning any large or extended trips on your vessel, ask your insurance company how much distance is covered. Your policy may only cover the boat within a specific radius from your home address or seasonal address. This is important to note if you’re hauling your boat to a body of water far from your property, which you might just want to do!