Personal Watercraft Insurance, Insurance and a Boat Purchase
Buying a boat is expensive. Most people who make a boat purchase must obtain traditional bank financing in order to pay for the purchase. Those who obtain a loan in order to purchase a boat will be required to purchase insurance for the boat as a part of their loan agreement. This is to protect the lender’s investment in the loan collateral, which is the boat itself. Many boat owners make the mistake of assuming that a generic insurance policy provides adequate protection.
Those who purchase a boat for cash are not subject to these requirements. Too often, these boat owners make the mistake of assuming that their boat falls under the umbrella of their homeowner’s insurance policy, and is thereby adequately protected.
