Many states don’t have a requirement for pontoon boat insurance, while some others may only expect you to have an insurance policy if your boat produces more than 50 horsepower. Still, many lakes and other marinas require liability coverage, while your bank could expect you to have a comprehensive policy in case you buy the boat on a loan.
Having insurance on your pontoon boat is always a good idea as it can save you peace of mind and keep your boat investment safe. Below, we discuss different types of insurance coverage and provide actionable tips on how to choose the pontoon boat insurance for your actual needs.
Different Types of Insurance and Coverage
Similar to auto insurance, the two main types of pontoon boat insurance include liability and collision:
- Liability Coverage: This type of insurance covers the damage you may cause to others while operating your pontoon, for example, hitting another boat or causing injuries to other people.
- Collision Coverage: This policy helps to recover the damage to your pontoon boat whenever you get in an accident on the water with another boat.
On top of those insurance policies, most insurers offer additional packages to extend protection and cover other risks. These include:
- Pontoon Boat Insurance with Comprehensive Coverage: Comprehensive insurance protects you against a number of risks, including natural disasters, vandalism, theft and other perils specified in the insurance.
- Fuel and Other Spill Liability Coverage: This coverage protects against claims for environmental damage, including fuel and other spill liability.
- Umbrella Liability Pontoon Boat Insurance: An umbrella policy extends coverage of liability beyond the standard insurance, providing an additional layer of protection against claims.
- Uninsured Boater Coverage: If you get injured by another boater who doesn’t carry liability insurance, this policy will help you cover the injuries you have suffered as a result.
Is Pontoon Boat Insurance Covered Under Homeowners Policy?
Depending on your homeowner’s insurance, you may have your pontoon boat covered against common risks, such as fire, storms, or other natural perils, while the boat is stored. In some cases, you may have a good deal by combining insurance for your car, house and pontoon boat under the same policy.
That said, many homeowner insurance policies extend only to smaller boats and provide limited coverage, which may not be enough for larger pontoons with more powerful engines. You also need to check with your insurance agent if you have your liability covered by the homeowner’s insurance as well.
What Else to Keep in Mind While Choosing Pontoon Boat Insurance?
Importantly, choosing the right insurance for your pontoon boat involves checking how your insurer values an insurance claim. For example, if you choose “an agreed value” coverage, the insurance company will pay you the full value placed on the policy minus the deductible, if any.
Meanwhile, many insurers only offer “actual value” insurance, which will pay the value of the boat minus depreciation. Although this type of insurance can be cheaper, many boaters prefer the “agreed value” policy to buy themselves a new boat, for example, in case of a total loss or similar situations.
How Much Does the Pontoon Boat Insurance Cost?
The premiums for a pontoon boat policy depend on a number of factors, including:
- type of insurance,
- choosing an “agreed value” or “actual cash value” insurance,
- amount of coverage,
- your age and boating record,
- accident history,
- location and other factors.
Similarly, the cost of pontoon boat insurance can range from a hundred dollars per year for basic coverage to several hundred for comprehensive coverage and an umbrella liability policy.
Top Insurance Providers
As it is sometimes said, you will never know how good your insurance is until you have a claim. For this reason, reading reviews and checking the insurance company’s rating can help you better understand what to expect and choose the company with the most positive reviews.
That said, many boaters mention American Family, BoatUS, Chubb, Progressive or Shelter Insurance as their choice of insurance company.
Conclusion
If you own a smaller pontoon boat, insuring it with your homeowner’s insurance can provide you with limited protection against the most common risks. However, for larger and more expensive pontoon boats, a specialized insurance policy is essential to provide you with more extensive coverage.
Pontoon boat ownership often comes with special financial and insurance considerations that need to be accounted for to keep you fully covered on the water and beyond. You can find more information about various aspects of pontoon boating on our forum or contact us directly with any questions or comments.
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Written by Eugene Ohotnikov, a yachting writer and editor-in-chief for a luxury portal, Moneysaurus.com. Currently living on the shore of the Mediterranean Sea, Eugene is not foreign to boats and is often seen gliding the waters across the Valencian coast.
