How does Homeowners insurance cover small watercraft on your premise or away from your premise? Separately insuring a kayak, canoe or rowboat is not common. Policies cover these watercraft in different ways. Refer to your home insurance for details. This article will outline general information that is common for insurance policies.
Before we start we need some background information on methods of coverage for personal property and kayak canoe rowboat insurance.
The first method of personal property insurance lists specific perils that need to cause a loss to personal property (Named Peril).
The second type will not list perils but instead, list exclusions (Open Peril or Special Form). The latter is the more advantageous way to cover these types of watercraft but not a common format for personal property coverage in most policies.
Named peril policies list all the perils that can trigger a loss to covered property. Within the policy the perils descriptions have limitations.
For example, Windstorm or Hail limits damage to watercraft, trailers, furnishings, equipment and engines but only while in an enclosed building.
Limitations also exist when watercraft move away from the residence premise. Theft coverage will not apply in these situations. This can be a major drawback to named peril policies.
Does not seem bad, only two but remember if there is no peril listed, there is no coverage. This is the basic nature of a named peril policy.
So what should you consider with a named peril policy?
- If your boats are valuable they are not covered for theft as soon as they leave your premise. 3)
- A boat that blows off your car while being transported is not covered.
- Watercraft left outside and damaged due to wind are not covered.
- A boat that floats away is not covered.
The wind, hail and theft exclusions above do not apply in this method of coverage. This type of policy does take out coverage for mold, fungus, damage by animals, dampness and temperature change. Additional exclusions include collision while in the water, sinking, swamping or stranding of the watercraft, trailers and accessories.
LIMITS OF INSURANCE
The limit of coverage for watercraft can be an issue no matter what type of policy purchased. A standard amount of coverage is $1,500 to include the watercraft, trailers, motors and accessories. Your deductible also applies. Check your policy for your limits of coverage.
OPTIONS FOR COVERAGE
Buying a watercraft endorsement will help with the limited insurance amount. To obtain broader perils (open peril or special form) choose from on of the following. First, purchase a home policy that automatically includes open peril coverage on personal property. Second, add an endorsement to your existing home policy that changes it from named peril to open peril. Lastly, schedule the watercraft as you would jewelry.
Hopefully you boaters found this useful. Let us know if we can help!