Boat Insurance: What Does Your Policy Cover?

What is boat insurance?

Although boat insurance isn’t required, it’s highly recommended! For example, just imagine what it might cost to repair your boat following a collision. With that in mind, choosing the right boat insurance remains an essential step before setting sail—just as important as holding your Pleasure Craft Operator Card (PCOC).

Just like a car or a home, a boat deserves protection tailored to its specific needs. iA Auto and Home Insurance offers all risks boat insurance, along with civil liability coverage, so you can sail with complete peace of mind and enjoy your favourite water sports.

Boat insurance: What are the basic coverages?

Even a small boat (most types of boats can be insured) can be involved in a collision and, as a result, cause damage to a dock or another boat or injure other people. Civil liability coverage is therefore a must.

All risks coverage is also recommended. It covers your boat against property damage, fire, theft or vandalism, whether on the waterh3 on land or in transit. And while natural disasters caused by climate change are becoming more frequent in Quebec and Canada, they are also increasing in intensity, causing more and more damage to property.

What other coverages are available for my boat?

Other insurance coverages can also be useful for recreational boats. You can get protection for your accessories and trailers, including communications and navigation equipment, which is generally pretty costly. In addition, pest coverage protects your boat from damage that could be caused by rodents or zebra mussels.

What is not covered by boat insurance?

While two policies may seem very similar, the coverage they offer can be very different. It is therefore important to look closely at policy limitations before purchasing boat insurance. Here are some examples of exclusions:

• Certain navigation areas may be excluded from coverage.
• Some water sports require additional protection.
• Normal wear and tear or damage caused by improper maintenance are not covered.
• Inappropriate or unreported use—for example, during water sports competitions or for commercial purposes—is not covered.
• Certain accessories or specialized equipment are generally subject to specific limitations.

How to choose the right boat insurance?

1. Accurately assess the boat’s actual use

The type of boat, purchase date and price, engine power, modifications made to the boat and the driver’s experience are just a few of the factors that influence the premium. How you use the boat also directly affects the level of risk assumed by the insurer:

• On which bodies of water?
• For occasional outings, fishing, water sports or extended trips?
• Who will be driving the boat?

2. Adapt your coverage to the value of your equipment

Over time, many boaters add accessories that increase the boat’s insurable value:

• Sonar
• Electronics
• Auxiliary motor
• Fishing equipment
• Stereo system
• Specialized accessories

These items are not always automatically covered or may be subject to limitations.

3. Think about transit and storage

Risks aren’t limited to when you’re on the water. Ideally, coverage should extend to before, during and after the boating season.

Boats can also get damaged:

• On the road
• When put in the water
• During winter storage
• Due to storms

Looking for a great deal? With iA Auto and Home boat insurance, you get the added perk of automatic membership in the Regroupement des Plaisanciers du Québec (RPQ), which gives you to up to 10% off your insurance premium and a service to assess the purchase or resale value of your vessel.

FAQ — Choosing boat insurance

What does boat insurance cover in Quebec?

Boat insurance can offer several types of coverage, depending on the policy you choose. Generally speaking, it can cover damage to the boat, theft, vandalism, certain types of weather-related damage and civil liability if the boat causes injury or damage to others.

Some coverages may also extend to onboard equipment, trailers or costs related to marine assistance. Since coverage varies from one policy to another, it is important to carefully review the limitations, exclusions and deductibles specified in the policy.

Does boat insurance cover storms and lightning?

Yes, many boat insurance policies cover damage caused by windstorms or hail.However, this protection depends on the type of coverage selected and the terms of the policy.

For example, the insurer might require that the boat be properly maintained, securely moored or stored in accordance with the manufacturer’s recommendations. Damage caused by wear and tear, gradual water seepage or poor maintenance is generally not covered.

When does an insurer consider a boat a total loss?

A boat can be considered a total loss when the cost of repairs exceeds its market value. The insurer may then choose to compensate the owner rather than have the boat repaired. The amount paid will depend, in particular, on the type of coverage provided for in the policy.

Is damage incurred during storage or transit covered?

It all depends on the coverage selected. Some boat insurance policies cover damage that occurs during road transport, launching or winter storage.

Since risks exist both on and off the water, it’s a good idea to make sure that the policy provides coverage for the boat year-round, not just during the boating season.