Owning a new boat can be exciting, but it’s important to understand the coverage lenders typically require before you sign on the dotted line, so you aren’t caught off guard by the cost later. There are a few key requirements to know.

Full Coverage

Most lenders require a full-coverage policy to protect the boat’s value if something happens. If the boat is involved in an accident, the insurance payout can help pay off the remaining balance owed to the lender. A full-coverage policy helps lenders protect their investment, so it should be sufficient to pay off the loan or to replace the boat entirely if needed.

Liability Coverage

Many lenders in Cincinnati, OH, want to see a comprehensive policy that also includes liability coverage, which can help if there’s a third-party injury or lawsuit. Most comprehensive boat policies automatically include a liability component, but it’s still worth asking an agent at Advantage Insurance Network to confirm your policy includes this coverage.

Comprehensive and Collision

Collision coverage helps pay for your boat’s repairs after an accident, while comprehensive coverage helps with damage from other causes, such as weather events or natural disasters. Most full coverage policies include both comprehensive and collision coverage to satisfy lender requirements.

Additional Coverage

Most standard policies only cover use within domestic or nearby coastal waters. If you plan to take your boat into international waters, you may need a separate marine policy to maintain coverage. Lenders typically require coverage to remain valid wherever you take the boat, so it’s worth planning ahead if you intend to travel further out.

Agents at Advantage Insurance Network will work with you to make sure you have the necessary coverage. Contact us today to learn more. We’re currently serving the Cincinnati, OH, area.

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