Stay Afloat with Watercraft & Boat Insurance: A Beginner’s Guide

While you are out on the open water, enjoying the fresh air blowing on your face and the feel of moving water under your feet, what you are thinking about is being in the moment. The last thing on your mind is watercraft or jetski insurance. But to fully enjoy the sense of freedom you feel while on South Africa’s rivers, dams, lakes, and seas, it is a good idea to protect your watercraft with boat insurance. At Dialdirect we can offer you guidance on the best policy for your boating needs, helping keep you afloat and letting you get out onto the water worry-free. 

What kind of insurance do you need for a boat?

Those who spend time on the water know that boating, sailing, and other water activities are more than just hobbies. It’s a way of life. But owning a boat, or any other kind of watercraft, doesn’t come cheap. There’s specialised equipment that needs to be maintained. That’s why it is so important to have an insurance policy, known as watercraft insurance, to look after these critical assets.

Boat insurance covers many different types of water vessels, from jet skis to yachts, dinghies, and sailboats, and the cover protects them while they are on water or on land.

While it isn’t compulsory to have boat insurance in South Africa, you may need to take out a policy nonetheless. Getting insurance is always advisable because the cost of repairs to a boat or vessel can be very high. You may also find that boat insurance is mandatory if you dock the vessel in a harbour or jetty.  If there is any type of bond on the vessel, the financial institution giving the loan will insist you have insurance, and the marina often requires insurance for the vehicles that dock there. 

Types of watercraft insurance

Boat insurance protects your watercraft from several accidents and mishaps, including theft and damage leading to sinking. It covers an extensive list of water vehicles, from small crafts like canoes to larger marine vessels. Be advised that, with some accessories, you may need additional coverage, and it is best to check with your insurer to see what is covered in a standard policy.

You can get insurance for many different types of water vehicles. Some of these insurance policies include:

• Boat insurance

• Sailboat insurance

•  Speedboat insurance

• Fishing boat insurance

•  Yacht insurance

• Dinghy insurance

•  Jetski insurance

• Houseboat insurance

Because those who enjoy water sports are adventurers who usually spend their time outdoors, exploring new waterways, Dialdirect’s boat insurance policies cover boating across Southern Africa. This includes South Africa, Botswana, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Zambia, and Zimbabwe.

This watercraft insurance includes coverage of all navigable waterways, lakes, rivers, and dams. Still, it is only for water enthusiasts who are out on the water for pleasure, sports, and leisure activities.

Commercial boat insurance is not included in this type of insurance coverage. So, those who use their boats for trade fishing, or to take tourists out on the water, for example, will need to take out different business insurance or a marine insurance plan as well as public liability insurance.

How does boat insurance work? 

Boat insurance works in a similar way to your car insurance.[1] If you are involved in an accident, your insurance will cover you financially for any injuries or damages caused during boating. It can also cover your watercraft financially if it is stolen or damaged.  

What does boat insurance cover?

With a comprehensive boat insurance policy, you are covered financially if you damage your boat or cause injuries or damages to someone else. The boat is covered both on land and on water.

Many policies will include damage to the hull, furnishings, fittings, and mechanical parts of the boat, such as the motor, anchor, fuel tanks, batteries, and onboard safety equipment. Many policies will also cover fuel spills and wreckage removal if your boat sinks. 

With Dialdirect, comprehensive boat insurance includes:

•  Liability

• Physical damage

• Medical expenses

• Towing

With liability insurance, you are covered if your boat damages somebody else’s property or you injure someone else during an accident. It covers your legal fees if you are ever sued over a boating accident, while physical damage cover protects your boat and any equipment that is necessary for the boat to function if it is damaged. 

What does boat insurance not cover? 

There are several things boat insurance won’t cover, such as gradual weather damage and general deterioration of the watercraft.

Other things that are not covered include:

• Wear and tear

• Manufacturing defects

• Corrosion

• Damage from sea creatures or aquatic life

Similar to car insurance, some things are not included in a general watercraft insurance policy, such as insurance for boat trailers. Boat towing insurance can often be added to your general policy. 

How much boat insurance do you need?

The amount of insurance you need for your water vehicle will depend on several factors, including your own personal needs and the size and value of your boat.

If your boat is stolen or completely destroyed, you may want an insurance policy that pays you out to replace your boat completely. Then the boat should be insured at an agreed value. This is a value you and your insurer agreed the boat is worth in advance, which would be close to the amount you paid for the boat when it was new.

Insuring your watercraft at its replacement or actual cash value is cheaper because your insurer would pay you out what the boat was worth when the accident occurred. This means depreciation and wear and tear on the craft are factored in.

H2: Get boat insurance from Dialdirect

Let the wind blow through your hair on a jetski or lie back and savour the sun's rays on a leisurely yacht ride. Get a boat insurance quote with Dialdirect today and enjoy a genuinely stress-free time on the water.

Sources:

[1] Investopedia: Boat owner’s insurance

  Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.