Can I insure a non-motorized boat?
With cottage season almost in sight, families across Canada are preparing to flock to cottages and cabins, excited catch some rays on the dock, fire up the barbeque and free their beloved boats from hibernation. Whether it's your brand new kayak or a canoe that's been in your family for generations, you want to protect it the same way you would protect a pontoon or speed boat, but what are your options when it comes to insurance?
Is boat insurance mandatory?
Whether your boat is motorized or not, boat insurance is not a legal requirement, and while you are free to self-insure, if your boat means a lot to you then it is a wise decision to explore your options.
Some insurance companies do offer specialist coverage for boats, and while its usually for those with motors, there is coverage for high value non-motorized boats where their loss or damage may result in greater financial losses. Insuring a boat is similar to insuring a car in the sense that both require you to pay premiums and if you need to make a claim, you will have to pay your deductible in order to get your money. However, boat insurance policies tend to be a little cheaper than auto insurance policies as they usually include a lay-up period to account for the off-season when your boat isn’t on the water. This lay-up period usually runs from October to April and during that time, your boat is not insured for use.
The one time boat insurance may be mandatory is if you plan to transport your boat between your home and an alternative mooring location. Similarly, if you store your boat at a marina, having an insurance policy in place may be a condition of your lease.
Is it included in my home insurance policy?
Whether you’re keeping your canoe in a boathouse or storing your kayak in your garage, there is a good chance that it is already included in your home insurance policy. Most homeowners policies are already insured for up to $15,000 for certain types of watercraft and accessories; this includes canoes, kayaks, row boats, and small sailboats of 26 ft and under.
However, if you are storing your boat at a seasonal property, check with your insurer that it is included in your policy; your day-to-day home insurance will not provide coverage for any loss or damage. Most homeowners policies will cover personal property against any named perils listed; typically fire, extreme weather, theft and vandalism.
If you’re a boat enthusiast, and have invested in a non-motorized boat worth more than $15,000 or added modifications which increase your boats value, your home insurance may not cover it. Talk with your home insurer about adding an insurance rider, as you would with high-value artwork or jewellery. You should also make sure this covers any time your boat is in storage.
Should I consider liability coverage?
Whether you think that liability coverage is a necessity is really a personal decision. How often do you use your boat? Does it carry passengers? Do you ever loan it to friends and family? While kayaks and canoes are built to float, they can also sink, and you should think about what implications this might bring to the surface.
Liability coverage will cover any accidents for guests on the boat, as well as when you are towing the boat from your home to the water. Talk to your insurer about liability policies and find out if it will be beneficial to you.