Boat owners, unlike automobile owners are required by the state to carry watercraft insurance. Though boat owners might greet this as welcome to news to their wallets, one question remains. Why even have a boat if you do not carry boat insurance?

Risk Versus Reward

Practically anyone that’s invested money in the stock market, real estate or even gambled is familiar with the concept of risk versus reward. The conclusion if the risk is worth the reward depends on many factors. What are the odds of “winning” compared to losing? Real estate has traditionally be a safe bet. The stock market more volatile but not as risky as outright gambling.

The answer to insuring a boat comes much the same way. Is the risk worth the reward. In most instances, the risk simply isn’t worth the reward. This is because a fleeting instance of fun can have long lasting consequences.

Marinas and Inland Waterways

While your state might not require watercraft insurance, the majority of marinas and inland waterway areas do. This is because substantial risk is present at all times. Not to the owner’s boat but to other boat and property owners. Marinas have a substantial amount of personal property stored at any given time. Moreover, persons who live along inland waterways also have personal property exposed to boats. In each situation, the boat of another owner might be responsible for property damage.

Personal Injury

Not only might a boat owner be involved in an accident which causes injury to another person, the owner might suffer personal injury to his own person. With third party boat insurance, financial damage incurred from personally injury can be significantly curtailed. The cost of hospital stays, doctors bills and laboratory work add up quickly. Without proper insurance, those costs can lead to financial ruin to the point of having to seek federal bankruptcy protection.

Recovery Costs

A boat owner awaits a rude awakening in the event his maritime play toy when handed the bill for recovering his boat after a natural disaster or even as the result of an unforeseen accident. Towing a boat back into harbor is nothing short of expensive and can easily surpass the value of the vessel, even in its pristine condition.

Personal Possessions

Boat owners don’t sail or motor across the water in an empty vessel. Those expensive marine tech devices and any equipment for diving and/or fishing might be lost or stolen. Without insurance, those items might as well be tossed overboard during a typhoon. Having good coverage at least reimburses a boat owner should such an unfortunate event unfold.

Lien Holders

Boat owners financing their purchase might be required to have insurance. Additionally, in order to facilitate the purchase of a new boat, insurance might prevent any hitches.