Congratulations on your new boat! Now, in addition to getting on the water, you need to figure out how to insure it. Here are the top 5 reasons to not leave your boat, yacht, jet ski, or sailboat covered under your Home Insurance Policy.

1. Homeowners Insurance policies generally have extremely low reimbursement rates if something happens.  

The good news is, a homeowners policy will usually cover you in the event of damage due to fire, wind, and even theft; however, the reimbursement rates will more than likely fall short of expectations. Many policies will cap reimbursement at around $1,000, and that's assuming your deductible has been met. If you haven't met your deductible yet for the year, it may not make sense to file a claim at all.

2. Your personal property aboard your boat may not always be covered.

If the personal property on your boat is stolen, the nature of the item may determine if it's covered under a homeowners policy. If the item could potentially be something also stored in your home, like fishing equipment, you will most likely be able to support your claim. If, however, your built-in stereo is stolen, a homeowners policy would fall short.

3. Personal Liability Coverage is often limited by boat size.

In the event of an accident where someone is injured and requires medical care, homeowners policies will cover you, generally up to $100,000. However, there are widespread restrictions on boat size and type. Homeowners will only protect you if your motor is under 25 or 50 horsepower or your sailboat is under 25 feet. It will almost never cover you if your vessel is a jetski or other similar personal watercraft.  

4. Lack of custom options

While Homeowner's policies cover the absolute basics, it lacks many of the custom options that come with a boat policy. Things you'll miss out on include towing, salvage, equipment, and cruise extensions. Many of these customized coverages protect you from incidental expenses for prevalent uses.  

5. Discounts

Boat-specific policies allow for discounts on your premium for safe behavior from taking approved boating safety courses, eco-friendly fueled engines, and not having claimed on prior policies.  

Don't go into boat ownership unprepared and under-covered by your insurance policy.  

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