Many boat owners will say something like “I take good care of my boat, so why would I need boat insurance? What could possibly go wrong?”
Nevertheless, once you read through the list of top ten reasons for recreational boat insurance claims, you’ll probably find it difficult to avoid the urge to get on the phone to your insurance agent in order to secure your boat some coverage.
An analysis of five years-worth of boat insurance claims was conducted by BoatU.S. The study was carried out over the period of January 1, 2008 through December 31, 2012. The list rankings reflect the total dollar value of insurance claims which were paid within that time-frame.
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10. Lightning Strikes
- At number 10 on the list of insurance claim payouts for the period January 2008 to December 2012, lightning strikes the spot! As you’d expect, electrical system damage is commonplace after a lightning strike, but hull damage can also occur and be extensive which is down to ‘exit wounds’.
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9. Theft
Boat theft only ranks at number 16 in relation to actual claim numbers. However, when it does occur, there’s generally little left of the boat if it’s ever found.
Some 90 percent of boats which are stolen in the U.S. were resting on a trailer according to San Diego firm Todd Schwede of Todd & Associates, Inc., who specialize in stolen vessel investigations.
That suggests, boat owners who stow their boats on trailers for any length of time, such as over winter, should consider removing the trailer’s wheels and support it on blocks instead.
8. Injury
- At 8 on the list of insurance claim payouts, we have another relatively infrequent event, but nevertheless a costly one – injury. Very many claims for injury involve uninitiated guests, so it’s wise to take every precaution and warn any non-boating companions about matters such as slippery surfaces, wakes, as well as other potential hazards.
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7. Grounding
- Grounding incidents ‘land’ at number 7 on our list. Nevertheless, on Lake of the Ozarks, the chances of grounding your boat are minimal if you are driving carefully. So let’s swiftly move on to the next top reason for boat insurance claims.
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6. Collision
- The vast majority of collisions (in this case, the word ‘collision’ means when one vessel collides with another, or when the vessel collides with a fixed object, although the latter is in fact strictly known as an ‘allision’) generally take place for one of three differing reasons:
- Speed too high
- Blind spots
- Inattention
Collisions on the Lake of the Ozarks tend to be relatively easy to avoid – reduce your speed to an easily manageable rate, go very slow when approaching blind spots, if there are any, and pay close attention to what you are doing.
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5. Fire/Explosion
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Again, fire and/or explosion ranks low in terms of the total percentage of claims on our list, it’s the average payout on a per claim basis that ‘fires’ it up the rankings, simply because, similar to the act of boat theft, fire and/or explosion often leads to a total loss of the vessel.
Explosions mostly are caused through fueling issues, where fires are mainly down to faulty wiring. Thus, if ever you notice the aroma of raw fuel, don’t hang around – get yourself and any others off the boat immediately. Further, carry out regular checks for wires that are improperly supported or chafed, or for damage to shore power cords and AC shore power inlet corrosion. And do be sure to have sufficient fire extinguishers on-board which are the correct type.
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4. Striking Submerged Objects
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Striking submerged objects has risen (as opposed to ‘submerged’) on our list, partly thanks to the drought which hit much of the country during 2011 and 2012, where Missouri suffered from extremely high temperatures from June through August 2012.
Avoiding a strike can prove to be rather difficult. The only advice is to be observant of what’s in the water around you, although that’s hardly going to be of help if the object is just below the water surface. Should you hit something, it’s wise to stop there and then to check for any leaks in the bilge. Then carry out the check more thoroughly when you return to the dock.
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3. Weather/Wind
- The damage mainly came from tornadoes (the year 2011 being one of the worst on record for tornadoes), heavy snowfall (the winters of 2009/2010 and of 2010/2011 being particularly severe), as well as wind storms, termed as ‘super derechos’, which in June 2012 badly impacted a dozen states. Making similar preparations for a tornado are advisable here, which include, securely tying your boat, minimizing windage, and reducing the chances for chafe. Many of these types of storms arrive with little warning, so the best advice to take is – where possible – to maintain your vessel in a well-protected area.
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2. Sinking
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Point to note here – in 2011, sinking claims in terms of dollars managed to top Hurricane Irene payouts, irrespective the fact that there were in fact ten times the amount of claims for the hurricane. Thus, as is the first rule in boating – don’t let the water in, skipper!
Many a boat sinking is caused by holes that are situated below the waterline. As such, this makes it a necessity to check all the fittings that are below the waterline each and every season – at least once, to avoid being sunk.
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1. Hurricanes
- At number 1 on the list of insurance claim payouts for the period January 2008 to December 2012, we have hurricanes! As you know, Hurricanes are not a major threat at the Lake of the Ozarks. However, reasons 1-9 are very realistic issues and reasons you need to insure your boat.
