Boatdealers.ca E-Magazine

Insuring your Boat

Dayana Moreno
July-Aug 2006 Issue

Though it may not be mandatory to insure your boat in Canada, you still may want to consider the benefits of boating insurance before you sail off into the sunset.

A boat is a significant investment and purchasing insurance is the best way to protect that investment.  It is not only a matter of protecting your boat, but a matter of protecting yourself.  According to Jarred Chartrand, production manager of Marine Expert Insurance, when an accident occurs, lawsuits are more prevalent. “People tend to sue more than they have ever sued before. You want to protect yourself…If something goes wrong, the last thing you want is to be stuck in a claim,” says Chartrand. “Boating season in Canada is short enough.”

While you may be inclined to look to insure your boat with the same company that insures your home and vehicle, Chartrand does not recommend placing your boat on your home insurance. “It’s supplemental,” he says. “Your primary coverage will be for the home and your liability coverage will not be as high. Most importantly, if you have any problems with your boat, it will impact your home insurance rate.”

As you begin your search for the right coverage, keep in mind that every company or broker sells competitive packages. There is no standard and the best thing you can do is to ask a lot of questions. “The more questions you ask, the more you will realize how knowledgeable your broker is,” he says.

Chartrand lists some key items to inquire about when selecting your coverage:

• get a minimum of $2 million liability coverage
• ask about water sports liability
• verify theft without restriction
• trailered without restriction
• if it’s a new boat look for an “agreed value settlement”
• verify there aren’t any restrictions on operators

While there may not be a lot of room for haggling when it comes to purchasing boat insurance, some companies do offer discounts. “We recognize how involved someone is in the boating community. When people take the time to get educated, they are considered a “better” risk than someone who just jumps on their boat and takes off,” says Chartrand.  He lists the Canadian Power Sails Squadron as an example of a reputable and well known organization.  

If you are new to boating, speak to those who are selling you the boat. Get a few names and call around. Chartrand advises to, “Look past the price and focus on the coverage.” Make sure you understand the coverage you are buying.  “If you are having trouble understanding them that is usually the first indication they are not the right broker for you.”

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