Does boat insurance cover theft?

Whether you're due to set sail or store your vessel, one of the most common hazards you can experience as an avid boat owner is theft. While boat insurance offers coverage in certain incidents like a boating accident, if you're a new boater, you may be wondering if stolen boats are covered under a standard policy. To learn more about boat coverage and what is and isn't covered, stick around.

Boat insurance does cover theft

Yes, boat insurance covers theft under the comprehensive portion of your insurance. That said, all insurance policies are different. Therefore, you will need to confirm whether theft is listed in your policy or whether you require additional coverage. Here's what is covered by boat insurance:

Dock or marina storage

Comprehensive boat insurance typically includes theft coverage from docks and marinas. You will, however, need to double check that your location is approved by your insurance company to ensure that this add-on boat insurance does provide coverage.

Trailer theft

Most boat insurance policies will cover theft when your boat is in transit or when it is parked and still attached to its trailer. Take note that you may need to install additional locks to the trailer to ensure your boat insurance is valid. So, make sure you clarify with your insurance company.

Personal property theft

Items like your fishing gear, navigational tools, electronics, and personal belongings you bring with you onto your boat may not be fully covered unless you purchase additional insurance coverage.

Security requirements

Sometimes, your insurance provider may require you to provide proof of security to confirm that you are taking proactive measures to prevent theft from happening, like boat locks, security camera footage, and more, before a claim is approved.

What does boat insurance coverage not cover?

While insurance will protect against numerous hazards, several circumstances and events are not often covered. Knowing what isn't typically included in a standard policy will ensure you're able to plan accordingly and purchase optional policies if needed. Here's a closer look at what's not automatically included:

• Animal damage.
• Damage caused by a lack of maintenance.
• Insect infestations.
• Intentional harm.

Note that this is not an exhaustive list. We recommend asking your provider for a complete list of exclusions before purchasing your coverage.

Types of boat theft and how they happen

Boat theft happens more often than you think. Types of boat theft include:

• Entire boat theft: This is pretty straightforward and happens when a thief steals an entire watercraft. Most boats are targeted at marinas, docks, and storage locations that have minimal security measures in place. Using a trailer, criminals can tow the boat away at night with ease.
• Outboard motor theft: Outboard motors are often targeted due to how valuable they are and how easy they are to remove from a vessel. They are also easy to resell online to other boaters who are unaware of how the thief received the motor.
• Equipment theft: Leaving valuable personal items on your boat, such as electronics, fishing gear, or navigational tools, is also commonly stolen from boats. Even if you lock your items in storage cabinets, it's easy for thieves to break in and steal them.
• Fraud-related theft: Some thieves also participate in title washing. This occurs when stolen boats have their IDs and titles altered or replaced entirely to prevent others from discovering where they came from. Once "washed," thieves can sell the boat to unsuspecting consumers who are unaware that they are purchasing a stolen boat.

What to do if your boat is stolen

In the event that your vessel is stolen, there are a couple of steps you'll need to take to ensure you navigate the claims process correctly and without delays. Here is what you will need to do:

Report the theft to local authorities

The first thing you need to do is report to the police that your boat has been stolen. At this time, the police will ask you a series of questions and generate a police report, which you will need a copy of for your insurance claim.

Notify your insurance company

The next thing you need to do is notify your insurance provider and begin your insurance claim. When you first call, an agent will ask you some questions and give you a claim number. Your claim will then be processed, and an adjuster will be assigned to your case.

Wait it out

While there is nothing else you can do during this time but wait, you can go ahead and check the area and online marketplaces to see if your boat turns up. In the event your boat is recovered, you'll need to notify your provider. If not, you can continue throughout the claims journey and receive compensation for your losses.

Cooperate with your claims adjuster

Your adjuster will likely investigate your boat theft. So, be prepared to answer any questions, bring them to the scene of the crime, and provide additional documents they may need to move your claim further along.

Receive compensation

If your boat is not recovered, your insurance company will provide you with compensation based on your policy limits and whether your plan is an actual cash value or replacement cost value plan. From then on, you'll be able to purchase a new personal watercraft.

How to keep your boat secure at all times

To avoid dealing with the aftermath of a stolen boat, you need to keep your boat safe and secure at all times, which is absolutely essential. Here are some security measures you can implement:

Store your boat in a locked facility

If you don't have space at home, consider storing your boat in a locked facility with 24-hour security. While this option may be costly, it can help deter theft and prevent you from filing an insurance claim.

Secure your boat

The harder it is to move your boat, the more difficult it will be to steal. Protect your boat by securing it with locks to your marina dock, a nearby tree in your yard, or another permanently attached structure.

Install security cameras and alarms

If possible, consider installing security cameras and an alarm system if you store your boat at home.

Remove your personal items

Make it a habit to remove all items like jet skis, wallets, clothing, and other belongings when you leave your boat.

Look at marina reviews

Not all marinas are as safe to store your boat in as others. If you're planning on storing your boat year-round, we suggest looking at different marinas in your area. Pay attention to reviews from other boaters, and don't be afraid to speak to other boaters who also store their vessel there so you can make an informed decision about how to proceed.

What is boat insurance?

Boat insurance is a type of coverage designed to protect boat owners and their vessels from several unforeseen risks. While boat insurance may vary slightly between companies, here's a closer look at what is generally covered under a standard boat insurance policy:

Third-party liability insurance

Third-party liability insurance will protect you against legal liability if you get into an accident that causes bodily injury or property damage to a third party.

For example, if you are operating your vessel and hit another boat, causing damage and injuries to the other owner, they have the right to sue you for damages. Luckily, if liability claims are filed against you, medical expenses, legal fees, repairs, and replacements are typically covered up to your coverage limits.

Property damage insurance

The second section of your boat insurance policy is the property damage element, also known as collision insurance. This boat insurance plan will cover any repairs or replacements needed for your ship as a consequence of an accident while boating, whether on the water, in transit, or when parked. It will also cover any personal belongings stored aboard your boat if they are destroyed in an accident.

Comprehensive coverage

Comprehensive policies are also included in standard coverage. Comprehensive insurance protects you from physical damage to your boat which happens during a non-collision event. This physical harm coverage includes theft, vandalism, fires, falling items, and any other covered risks listed in your policy and extends to your belongings, like your boat trailer.

Other theft coverage exclusions

Beyond the types of perils that are not typically included in your boat insurance policies, there may also be gaps in your coverage that you should be made aware of as a boat owner:

• Unattended boats/keys in boat: If your boat is stolen with the keys in the ignition or in the boat in general, your insurance company may deny your claim.
• Non-approved storage locations: If your boat is stolen from a location that was either unsecured or not approved by your provider, you may not be covered.
• Boat accessories and custom parts: If you have detachable accessories or custom modifications on your boat, you may need to purchase additional insurance coverage to ensure that they are covered in the event your boat is stolen.
• Commercial vs. personal use: If your boat is insured for personal use but is stolen while you are conducting business, your claim could be denied as you did not have the right coverage in place at the time the theft occurred.

Is having a boat insurance policy mandatory in Canada?

No, boat insurance coverage is not legally required in Canada. That said, boat insurance is important and ensures boat owners are financially protected against losses that occur as a result of unforeseen circumstances. Whether it be physical damage or bodily injury, boat insurance ensures that you won't have to pay out of pocket for repairs, replacements, medical bills, and more.

How to save on your boat insurance cost

Insurance costs can vary depending on numerous factors. However, there are ways you can save:

• Install a GPS tracker and other security measures on your boat to reduce the risk of theft. Your insurance provider will likely issue a discount for doing so.
• Keep your boat in a secure storage facility during the off-season to prevent theft and reduce the risk of property damage.
• Take a boat safety course to demonstrate responsible boat ownership. Your provider will likely give you a discount as well.
• Bundle your insurance with other coverages to save even more!

Get affordable boat insurance with BrokerLink

At BrokerLink, we help Canadian boat enthusiasts find affordable insurance coverage based on their unique needs, boating habits, and budget. Beyond standard boat insurance, our brokers can help you acquire:

• Coverage for recreational boats
• Seasonal boat insurance
• Insurance for your commercial fishing boat
• And more!

To work with BrokerLink, don't hesitate to visit us at one of our many locations across Canada. If we're not in your neighbourhood, you can give us a call over the phone or contact us over email. You can also get a free boat insurance quote from the comfort of your own home using our free online quote tool!

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