Performance Boat Insurance Coverage
Performance boat insurance policies provide insurance coverage for physical damage to the vessel and third-party liability, similar to all boat insurance. However, they also include unique warranties related to the vessels' performance.
Named Operator Endorsement
One such warranty is the Named Operator Endorsement. This warranty states that insurance coverage is only valid when the vessel is operated by individuals listed on the insurance declaration page. Insurance companies often require that the owner and named operators have prior ownership or experience with performance boats. If an individual's driving history, loss history, or lack of experience increases the risk of loss or accidents, the insurance company may decline to add them as a named operator.
Additional Warranties
Here are additional warranties you may find in a performance boat insurance policy.
1. Under the Influence of Alcohol or Controlled Substances: Losses incurred while the insured watercraft is operated by anyone under the influence of alcohol, as determined by state law, or a controlled substance as defined by the Federal Food and Drug Law.
2. Race, Speed, and Endurance Contests: Coverage excludes any losses resulting from races, speed contests, or endurance contests, although it does not apply to organized recreational poker runs.
3. Performance Boat Engine, Outdrives, or Fuel Modifications: It is warranted that the engine(s), outdrive(s), or fuel have not been modified without the insurance company's prior knowledge and consent.
4. Over-Revving of Engine(s): The policy excludes losses caused by the over-revving of engines.
5. Watersports Liability Exclusion: Excludes all watersports activities, which include towing individuals on water skis, wakeboards, inflatable tubes, or similar devices. Coverage is also excluded for parasailing, spinnaker flying, kite skiing, hang gliding, or similar activities that involve tethered flight.
Theft Deductibles - Anti-Theft Measures
Due to the higher incidence of theft associated with performance boats, additional conditions regarding theft may apply. Some insurance companies may impose higher theft deductibles and require anti-theft measures, such as:
1. Storing the boat in a completely enclosed, fenced, and locked facility.
2. Using a commercial storage yard or a marina that is fully enclosed, fenced, and locked.
3. Storing the boat on a locked boat lift, hoist, or dry storage rack.
4. If the boat is on a trailer, ensure the trailer is equipped with a hitch or axle-locking device.
GPS Tracking Device
Additionally, some performance boats may be required to have a theft exclusion endorsement if specific conditions are not met, such as having a GPS vehicle recovery tracking device. There will be no coverage for loss due to theft or unexplained disappearance of the boat and/or its equipment if the vessel is not equipped with a permanently installed GPS tracking device, or if the device is not actively transferring real-time data through cellular or satellite networks.
United Marine Underwriters - Boat Insurance Authority and Trusted Choice since 1990
Boat insurance varies widely; each policy is unique, especially in the case of performance boat insurance. It's essential to work with a knowledgeable boat insurance agent who understands the various performance boat insurance warranties and can help you find the best policy to suit your needs.
