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Executive Order for Policyholder Payments
Owning a boat is a dream come true for many, offering freedom, adventure, and relaxation on the water. But with that dream comes responsibility especially when it comes to protecting your investment. One of the most common questions we hear at Club Agency Insurance Brokerage is: Does boat insurance cover sinking? Let’s dive into the details, so you can cruise with confidence.
Boat insurance protects you from financial loss if your vessel is damaged, stolen, or causes injury or property damage to others. While not always required by law, many marinas and lenders mandate coverage. According to the U.S. Coast Guard’s 2023 Recreational Boating Statistics, there were 4,040 boating accidents in 2023, resulting in $63 million in property damage. Sinking is a significant contributor to these losses.
The short answer: In most cases, yes, boat insurance can cover sinking, but with important caveats.
Most standard boat insurance policies include coverage for “perils,” such as:
If your boat sinks due to a covered peril (like hitting a submerged object or being caught in a storm), your policy will generally pay for repairs or replacement, up to your policy’s limits.
Insurance protects against the unexpected, not neglect. Most policies exclude coverage for:
If your boat sinks because you ignored a maintenance issue, your claim may be denied.
Imagine you’re out on the water and strike a submerged log, causing your boat to take on water and sink. If you have comprehensive boat insurance, your policy likely covers the loss, minus your deductible. However, if your boat sinks at the dock due to a rotted hull you failed to repair, your insurer may deny the claim.
The National Association of State Boating Law Administrators (NASBLA) emphasizes regular inspections and maintenance as key to preventing sinking. In fact, over 75% of sinkings occur at the dock—often due to failed bilge pumps, leaky fittings, or neglected hulls.
Read Your Policy: Understand what perils are covered and any exclusions.
Maintain Your Boat: Keep records of all maintenance and repairs.
Consider Additional Coverage: Ask about add-ons like mechanical breakdown coverage.
Work with an Expert: At Club Agency Insurance Brokerage, our experienced agents can help you find the right policy for your needs.
The U.S. Coast Guard reports that sinking is among the top five causes of recreational boating accidents.
According to the Insurance Information Institute, the average boat insurance claim for sinking is over $20,000.
Boat insurance can cover sinking, but only if the cause is sudden, accidental, and not due to neglect. Protect your investment by maintaining your vessel and choosing the right insurance partner. At Club Agency Insurance Brokerage, we’re here to help you navigate your options and stay afloat, no matter what comes your way. Contact us today or call us directly at (866) 784-9785.
Many policies offer limited coverage for personal effects, but you may need to add extra coverage for high-value items.
Some policies include fuel spill liability, but coverage limits vary. Check your policy or ask your agent for details.
Many insurers offer discounts for features like automatic bilge pumps or high-water alarms.
Typically, damages occurring during transport are covered under your auto or homeowner’s policy, not your boat policy. Check with your insurer for specifics.
Contact Club Agency Insurance Brokerage today for a customized quote and expert advice. Safe boating starts with the right coverage!
