Just like you, all insurance policies are unique. Although this information can help you navigate your insurance questions, this is not insurance advice and some details may not pertain to your specific risk. If you have a question about your insurance policy or coverage, never hesitate to give us a call.
Watercraft Insurance
Who doesn’t love to set sail on a warm summer day, breeze in their hair, enjoying the beauty of our Ontario Lakes? While boat insurance is not mandatory in Ontario, at Cassidy & Young we always recommend protecting not only your property, but yourself and those you love.
There are many types of watercraft insurance, but they can be mainly broken down into two categories: Pleasure craft and Personal Watercraft. Pleasure craft insurance refers primarily to in-board/ out-board and power boats but can also include kayaks, canoes and sailboats. Personal watercrafts refer to vessels that are operated on a smaller scale, such as jetskis.
One of our most common questions regarding watercraft insurance is “How do the insurance companies decide what rate I will pay”? Rating factors are complex and set in place by the company’s actuarial staff. That being said, we can of course provide some insight!
Some rating factors are, but not limited to the following:
- Mooring location
- How the vehicle is stored in the off-season
- Type of boat (Year, Make, model, CCs)
- Age, size, max speed and construction material
- Cost of boat, motor and trailer
- Your watercraft driving experience
- Your claims history (both on your boat and automobile insurance)
- If there are any modifications
While some insurance policy will have coverage for watercraft as an extension of your home insurance, there is also an option to insure the watercraft separately. Although it creates an additional policy to manage/ pay for, there are some benefits that outweigh those factors. For example, if you file a boat insurance claim on a separate watercraft policy, it may not count on your home insurance policy and therefore you are able to maintain your claims free discount! In addition to this benefit, separate boat policies often offer more coverages, like vermin damage. When it comes to the claims experience, specialized companies will be better equipped to answer your watercraft specific concerns and help you navigate the claims experience.
In 2009, the Ontario government increased the requirements for obtaining a Pleasure Craft Operator Card. This testing standardization stood as an attempt to increase safety on the waters and bring peace of mind to operators/ passengers. Before purchasing your watercraft, please ensure you have the required licensing. If your vessel is equipped with a motor of 10 horsepower or more, you must obtain this license.
Although studying the standardized test material, as well as successfully completing the examination are steps toward increasing water safety, there is more you can do.
- You can take a Power Squadron or Sail Squadron certification course or any further boating education courses.
- In Ontario, the regulation requires that each watercraft, regardless of type, have on board a Canadian- approved personal flotation device or life jacket. Even further, it is mandated that all occupants have a properly sized device on board, ideally that is worn for the entirety of the time spend of the watercraft.
- Mandatory Safety Equipment
- As mentioned above, a correctly sized, Canadian approved life jacket.
- A manual propelling device. Or an anchor that is, at minimum, 15 m of rope, cable or chain.
- A buoyant heaving line which is 15 metres in length.
- A bailer or hand pump
- Sound- signalling device
- Fire extinguisher
- Navigation lights if the watercraft is to be used during times of reduced visibility such us sun rise, sunset, heavy fog or rain.
- A waterproof flashlight OR 3 Canadian approved flares.
It is also interesting to note that there are several reasons why an insurance company would decline an individual’s access to watercraft insurance. While speaking to a broker at Cassidy & Young is the best way to understand the full scope of exclusions, let’s go over a few of the main ones here!
- Some insurance companies will refuse to insure specific hull types.
- The most common boat type that some companies will not insure is a pontoon boat.
- You can also see this exclusion applied to: flat bottom river boats, homemade boats, and houseboats.
- Pleasure craft vessels or personal watercrafts that have any modifications.
- Single ski jet skis.
- Vessels with Jet Propulsion or any racing/ high speed capacity.