What is Boat and Recreational Vehicles Insurance Coverage?
Boat and recreational vehicle insurance is a critical type of coverage for anyone who owns a personal watercraft, motorcycle, or ATV. While these policies are usually not required by law, they are very important to protect the large investment that many people make into these types of vehicles.
It is not uncommon for consumers today to spend more than $10,000 on a single purchase of a motorcycle or boat. In addition, the amount of money that is spent on maintaining these vehicles can add up to thousands of dollars a year. For many families and individuals, these items have to be financed, meaning that they make payments for years.
This also means that there are major financial consequences for people who lose or damage their boat or recreational vehicle. If one of these vehicles is stolen or is lost due to a natural disaster, the owner is responsible for replacing it. While this might not be a big deal for someone who has ample cash reserves to replace these high-ticket items, most people find themselves on the hook for paying a loan on a vehicle they don’t even own anymore.
By purchasing boat and recreational vehicle insurance, a person or family can help protect themselves from this kind of loss. These policies may provide funds to replace the items lost, and in many cases they do not cost too much. Based on the exact type of policy that is purchased, funds can be provided to buy a new version of the item lost, enough money can be provided to purchase a used replacement for the item lost, or the remaining balance of a loan can be paid off.
In addition to protecting a family or individual in the case of a catastrophic loss, many of these policies can also provide some protection in the event that a person injures him or herself while using or even being around one of these vehicles. They can provide funds for medical care, and in some cases even provide protection for a liability lawsuit that could be filed.
If you have a recreational vehicle or a boat, buying an insurance policy that is tailored for your particular item is a smart financial move.
Disclaimer: This is for information purposes only and NOT a recommendation from Mills Insurance. Please contact a licensed insurance agent specialist to discuss insurance coverage’s and laws.