Intro: Protecting your kayak against personal property loss
This series is designed to give an informational insight on some of the most commonly asked questions involving insurance and kayaking. Can you insure a kayak? Do you need separate insurance policy to cover gear? What if your kayak is stolen, will you be covered? These are just some of questions that will be addressed and answered throughout this series.
Can you insure a kayak?
Yes. In fact, most people who currently have an active homeowner’s policy are already insured for up to $1,500 (some companies $1,000 limit) for certain types of watercraft and accessories. This includes canoes, kayaks, row boats, and small sailboats. Although most inboard and outboard watercraft is excluded from a standard homeowner’s policy, coverages against property loss of canoes, kayaks, and sailboats (26 feet or under) are covered. Your homeowner’s coverage will even cover losses to the kayak of a friend who the insured borrows.
Where is my kayak covered by my insurance?
Most people who suffer from a personal property loss are going to be away from home. The great part about most standard homeowner’s policies is that your kayak will be insured against losses while it is located anywhere in the world. The only exception to this provision is a second residence such as a summer home or vacation cabin.
What if my kayak is worth more than $1,500?
If a policy holder seeks to protect their kayak, or fleet of kayaks, beyond the standard $1,500 limit of protection, it is recommended that the policy holder itemizes their kayak as “scheduled watercraft” where the covered amount will be determined on a valued basis or by the amount provided on the bill of sale. A valued basis is a value determined between the policyholder and the insurer as the appropriate value of the item wished to be covered. Typically, scheduled (or itemized) insurance is available for items such as jewelry or fine arts, but kayaks with a high value may be scheduled separately for an additional premium on a homeowner’s policy.
What perils will I be covered against?
Most homeowner’s policies will cover personal property against loss for covered perils listed in your insurance agreement. Standard homeowner’s insurance will cover personal property against perils such as fire, lightening, explosion, physical damage, and theft. Most policies will exclude coverage from water backup, war, nuclear hazard, and ice. Review your individual policy or contact your insurance agent for questions regarding the coverage of your particular policy.
How much will the insurance company pay?
It depends on the conditions within your insurance agreement such as the watercraft’s valued amount and your deductible. In the instance of a reasonable loss, the insurance company will pay the valued amount of the kayak minus your deductible. For instance, Dave files a claim through his insurance company after his custom P&H Cetus LV is stolen. The determined value of the sea kayak was $3,800 based on Dave’s bill of sale at the time of the purchase. Dave’s homeowner’s policy contains a $50 deductible per watercraft incident.
The insurance company will pay Dave a $3,750 indemnity ($3,800 value – $50 deductible = $3,750 claim payout).
Disclaimer: This information included in this guide is designed for informational purposes only and is not intended to give insurance advice regarding coverage, insurance companies, or policy endorsements. Before you make any changes or additions to your current policy and/or begin a new policy, review your insurance options with a licensed agent to identify which coverage would fit your particular coverage needs.