Liveaboard boats are an expensive investment, so it is important you get insurance to protect your assets with the appropriate insurance policy. Liveaboard boat insurance is insurance that is designed specifically for individuals who live on their boats permanently or for extended periods of time.
As an insurance agent, I understand the importance of protecting your assets from financial loss due to damage or unexpected events. Liveaboard boat insurance is designed for those who live permanently or for extended periods of time on their boats.
In this article, we will discuss the coverage options available, factors that affect your insurance rates,provide tips on purchasing liveaboard boat insurance, tips for saving money, and common misconceptions. Let’s get started!
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Liveaboard Boat Insurance
If you live on a boat, it’s important to have liveaboard boat insurance to protect your home and belongings. This insurance policy can be customized to fit your specific needs, and it covers damages to your boat as well as your home’s contents. The cost of the insurance depends on the amount of coverage you need and the type of boat you have.
For those looking for liveaboard boat insurance, you have a variety of coverage options available to you, such as:
Liability coverage: Liability coverage is the most basic type of coverage and is typically required by law. It provides protection if you are found to be at fault for an accident that causes injury or damage to another person’s property. This coverage can also include protection for your passengers and any guest aboard your liveaboard boat.
Physical Damage Coverage: Physical damage coverage protects your liveaboard boat and its equipment from damage caused by things like storms, fire, and theft. This coverage typically includes protection for the hull, machinery, and other equipment on your boat.
Personal Property Coverage: Personal property coverage provides protection for your personal belongings on your liveaboard boat. This can include items like clothing, electronics, and personal effects.
Medical Payments Coverage: Medical payments coverage provides protection if you or a passenger is injured while on your liveaboard boat. This coverage can help pay for medical expenses and may also include coverage for lost wages and other related expenses.
Uninsured Boater Coverage: Uninsured boater coverage provides protection if you are in an accident with another boater who does not have liability insurance. This coverage can help pay for damages and injuries caused by the uninsured boater.
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Liveaboard Boat Insurance Cost
Liveaboard boat insurance depends on many factors but usually costs between $1,000 and $2,000 per year. The price is largely based on the type of boat, the value of the boat, and where the boat is being docked and typical destination locations.
As an insurance professional, I always tell my clients that when looking at insurance rates, it is important to understand that there are a lot of factors that can influence them. The cost for liability insurance for a liveaboard boat is going to be more expensive when compared to other vessels which you don’t live on.
But that’s obvious, so let’s jump into the factors and figure out how much liveaboard boat insurance is. These factors include:
Size And Type Of Boat: The size and type of your liveaboard boat can have a significant impact on your insurance rates. Larger boats and those with more advanced equipment tend to have higher rates due to the increased risk of damage and liability.
Location Of Boat: Where you keep your liveaboard boat can also affect your insurance rates. Boats kept in areas with higher risk of natural disasters or theft may have higher rates.
For example, if you keep your boat in a marina, it may be considered more susceptible to damage from storms or flooding, and therefore will be charged higher rates.
Age And Experience Of Boat Owner: Your age and experience as a boat owner can also affect your liveaboard boat insurance rates. Younger, less experienced boat owners are considered higher risk and may pay higher rates.
Safety And Security Features On The Boat: Safety and security features, such as GPS tracking and alarms, can help lower your liveaboard boat insurance rates. Installing these features can demonstrate your commitment to safety and may qualify you for discounts on your policy.
Your insurance company also looks at your claims history, credit score, and the type of liveaboard lifestyle you have. A history of claims or a poor credit score can increase your rates, whereas a clean claims history and a good credit score can help lower your rates.
It’s important to keep in mind that the factors that affect liveaboard boat insurance rates can vary depending on the insurance company and the specific policy you choose.
It’s important to compare rates from multiple providers and to work with an insurance agent who has experience with liveaboard boat insurance. This will help you understand the specific factors that are impacting your rates and how to get the best rates possible
Cost Of Basic Liveaboard Boat Insurance Example
I recently helped one of my clients with a liveaboard boat and the annual cost came to $1,700. Of course, these prices vary depending upon the location the boat is moored and how often you intend on staying on it.
The boat my client purchased was a Ranger Tug boat that cost well over $200,000. Even still the annual cost for the insurance policy was only $1,700. But keep in mind that the client was not intending on living in the boat full time and it is moored in a very safe location in the Upper Chesapeake bay.
Tips For Purchasing Liveaboard Boat Insurance
As an insurance agent, I understand that purchasing liveaboard boat insurance is an important step in protecting yourself and your assets. However, purchasing insurance can also be an overwhelming and complex decision.
My Top Tips For Purchasing Liveaboard Boat Insurance Include:
Shop Around: It’s important to shop around and compare rates from multiple insurance providers. This will help you get a sense of the market and understand how different factors, such as your location and the type of boat, can impact your rates.
Work With An Insurance Agent: An insurance agent who has experience with liveaboard boat insurance can help you navigate the process and understand the specific coverage options and discounts that may be available to you.
Understand The Coverage You Need: Make sure you understand the specific coverage options and limits that are available and that you are getting the coverage that you need. Take into account the specific risks associated with your liveaboard lifestyle.
Review The Policy Carefully: Once you’ve selected a policy, review it carefully to make sure you understand exactly what is and isn’t covered. Make sure you understand the process for filing claims and any exclusions or limitations that apply to your policy.
Consider Bundling: You may be able to save money by bundling your liveaboard boat insurance with other types of insurance, such as homeowners or auto insurance.
Keep in mind that the process of purchasing liveaboard boat insurance can be complex, so it’s important to work with an insurance agent who has experience with this type of insurance.
This will help you understand the specific coverage options that are available and how to get the best rates possible.
Tips For Saving Money On Liveaboard Boat Insurance
As an independent insurance broker, I know that budget is always a major concern for my clients. Insurance can be an expensive purchase, so it is important to know how you can keep your premiums down.
Based on my experience as an insurance agent, these are the tips I recommend to help you save money:
Maintain A Good Claims History: A good claims history, meaning no or few claims, can help you qualify for discounts and lower your liveaboard boat insurance rates.
Keep Your Boat In A Safe Location: Keeping your boat in a marina or other secure location can help lower your rates by reducing the risk of theft or damage.
Install Safety And Security Features: Installing safety and security features, such as GPS tracking and alarms, can help qualify you for discounts and lower your rates.
Improve Your Credit Score: A good credit score can help you qualify for better rates on your liveaboard boat insurance.
Bundle Your Insurance: Bundling your liveaboard boat insurance with other types of insurance, such as homeowners or auto insurance, can help you save money on your overall insurance costs.
Shop Around: Compare rates from multiple insurance providers to ensure you’re getting the best rates possible. Don’t hesitate to negotiate with your insurance agent or company for better rates.
Common Misconceptions About Liveaboard Boat Insurance
As an insurance professional, I know that there are a lot of misconceptions about liveaboard boat insurance. It’s important to understand why these misconceptions are not correct to ensure you understand what to expect when shopping for liveaboard insurance.
These Common Misconceptions Include:
Living On A Boat Full-time Means Higher Rates: While it’s true that liveaboard boat insurance may be more expensive than traditional boat insurance, it doesn’t necessarily mean that rates will be higher. Factors such as the location of the boat, safety measures, and claims history will all be taken into account when determining rates.
Living On A Boat Full-Time Is Not Insurable: Many insurance providers offer coverage options specifically for liveaboard boaters. With the right coverage and by working with an experienced insurance agent, it’s possible to insure your liveaboard lifestyle.
All Liveaboard Boat Insurance Policies Are The Same: Not all liveaboard boat insurance policies are created equal. It’s important to compare coverage options, limits, and exclusions from multiple providers to ensure you’re getting the coverage you need.
Liveaboard Boat Insurance Is Not Necessary: While it’s not legally required to have liveaboard boat insurance, it’s important to have protection in case of accidents or damage to your boat or personal property.
The Cost Of Liveaboard Boat Insurance Is Prohibitively High: While liveaboard boat insurance may be more expensive than traditional boat insurance, the cost can vary greatly depending on a variety of factors. By shopping around and working with an insurance agent, you may be able to find affordable coverage options.
You Can’t Get Discounts On Liveaboard Boat Insurance: Many insurance providers offer discounts for liveaboard boaters, such as for safety features, good claims history, and bundling with other types of insurance. Be sure to ask about available discounts when shopping for liveaboard boat insurance.
Conclusion
As a boat owner, you can get insurance for your boat that can be customized to your specific needs. If you live on your boat, you should make sure you have the right insurance to cover any damage that might happen while on the water. The cost of the insurance will depend on how much coverage you need and the type of boat you have.
It’s important to get boat insurance because some marinas require it and lenders often require it as part of the loan agreement. If you’re moving onto your boat, you should consider getting liveaboard insurance, which is different from houseboat insurance because it represents both a dwelling and a pleasure craft.
You should also talk to your insurer about your personal property coverage limits and consider making an inventory of your possessions in case you need to make a claim. Some insurance companies treat liveaboard boats differently, so be sure to choose an insurer that offers policies for liveaboard boats in addition to traditional boat insurance.
It’s important to be honest with your insurer about whether you live on your boat because lying on an insurance application is insurance fraud and can lead to legal ramifications or a denied claim.
