Is your boat better protected on your homeowner’s policy?
Should you include your watercraft on your homeowner’s policy or go for boat insurance?
We asked the underwriting team at APRIL Group, which has multiple subsidiaries in Canada that offer insurance for your property both at home and on the water (APRIL Canada and APRIL Marine Canada).
“Our partner brokers often hear from boat owners who aren’t sure whether they should insure their watercraft with a boat insurance policy or put it on their homeowner’s policy. For several reasons, we highly recommend opting for a dedicated insurance policy.” Anne-Marie, underwriting manager at APRIL Marine.
The most logical reason is that home insurance and marine insurance cover different things. Your home insurance policy may contain certain limitations and the guarantees included aren’t necessarily well-suited to cover risks related to maritime activities such as:
– Boat rescue
– Wreck removal
– Cleaning up pollution or fixing environmental damage
Additionally, in the event of a claim, some home insurance policies could prove disadvantageous when they pay out. This is because most homeowner’s insurance for boats pays claims based on the actual value on the day of the event, minus depreciation. Any claims and events involving your boat will be counted against your entire homeowner’s policy. In most cases, this means that your premium and deductible will go up for your home insurance.
This choice is better because marine insurance offers more comprehensive coverage suited to the risks arising from maritime activities. In particular, it will cover the cost of boat rescue, wreck removal, pollution clean-up, and other expenses.
Civil liability coverage is also higher than on a homeowner’s policy. This feature is important because most marinas in Ontario require $2 million in civil liability coverage, but home insurance rarely offers more than $1 million.
Because marine activities have their own set of risks, it’s smarter and safer to go for a dedicated policy.