Boat Insurance.

Post by **Cranfield** » March 8th, 2005, 6:02 pm

Is there a legal obligation to insure your boat (as there is to insure your car/truck) ?

If so , what cover are you required to have ?

Post by **Sir reel** » March 8th, 2005, 6:04 pm

Good afternoon Cranfield......none required for recreational use

Post by **Cranfield** » March 8th, 2005, 7:47 pm

So if somebody steals a boat, or it sinks, in the majority of cases the Owner stands the loss ?
That seems a large risk for an individual to bear.

I am also surprised there is no compulsory third party/public liability requirement, taking into account the litigious times we live in.

Post by **wevans** » March 8th, 2005, 7:57 pm

Boating is still in the "if ya wanta, do it it" catagory here Cran

It will become mandatory once the lawyers "no offense ya'll" figure there is a good bit of money to be made

Post by **tin can** » March 8th, 2005, 10:41 pm

Cran, to my knowledge, the only time insurance is required is if the boat is financed, and the lender requires it. I keep mine insured, regardless. On more than one occasion the insurance company has fixed what I tore up.

Post by **Cranfield** » March 9th, 2005, 5:06 am

Its a very interesting situation.

Most equipped boats cost as much as a road vehicle, so there is value there.
The boats are towed on the road and used in recreational areas, so there is plenty of risk opportunity to third party property and the "public".
They are desirable objects for thieves and they are vulnerable to loss ,or damage by natural disasters, or operator fault.
Its seems the Insurance Industry is missing out on a golden opportunity.

Its clearly a "peace of mind" thing, but I would certainly insure a boat for third party, accidental damage and loss.
The potential financial impact of the alternative, would be too painful for my sensitive wallet.

Post by **tin can** » March 9th, 2005, 6:12 am

There are tournament trails that require a boat owner to carry liability insurance. In a draw tournament, a boat owner might have a total stranger in the boat for the duration of the tournament. Other tournaments require participants to carry liability insurance, and sign a waiver, releasing the tournament orginization from any responsibility for loss, damage, or injury.

Cran, I think you're right in saying the insurance industry is "missing the boat". It won't be long before insurance is required.