I have vivid childhood memories of sailing in the gulf with my grandfather. I remember one time, he tried to teach me how to fish. He let down the anchor and gave me a pole. I cast it out and after about an hour of trying, something finally bit my line. I was excited. I reeled it in and saw my catch… a small catfish that was not even 8 inches long. Gramps told me to toss it back out because it needed to grow some more. I was a bit disappointed that I did not eat the fish that took me so long to snag.

That little catfish was the first and only fish I caught. I never gave fishing another go. Now I prefer to do my fishing at my local grocery store… or when my grandfather has a bountiful catch, he brings me over a chest full of fresh fish.

My grandfather went boating all the time. And now that he is retired, he goes just about every weekend. He says that being on the open water frees him from the stresses of everyday life. It’s his favorite pastime.

For the past however many years, my grandfather’s homeowner’s insurance policy had an endorsement for boating coverage. But, last week he got a letter from them saying that this additional coverage will no longer be provided. So now he needs to get a boat insurance policy.

My grandfather is a sailor, he’s got boating mastered. He is not a finance person, so he called on me to help. Since he has given me hundreds of pounds of fish over the years, I figure I can pay him back helping him find new coverage. But the problem is that I know nothing about boat insurance. So to can help him make the best choice, I have to discover what it is all about.

My grandfather recently upgraded to a new boat. It cost him upwards of $40,000. While boat insurance is not mandatory, it is wise to have. All kinds of weird stuff can go wrong on a boat… fires, hurricanes, oil spills. And you would not want a $40,000 purchase to be left unprotected.

But in addition to covering damages to the boat, this insurance also comes with liability protection. This is good if someone sues you for injuries that may happen in a boating accident.

And anyway, most marinas won’t let you dock unless you have boat insurance.

So what is covered under boat insurance? Well as I already mentioned, it covers property damage and liability. But it also covers medical expenses and damages caused by uninsured boaters.

Most policies also come with an emergency services add on. That way… if you have any troubles on the water, someone is available to assist by delivering oil or gas or even towing the boat back to land.

There are many homeowners insurance policies that allow you to extend coverage to your boat. But there are also many companies that specialize in boat and marine insurance. The cost of boat insurance can vary greatly depending on coverage. But to get the best price, it is usually better to bundle other insurances. Most companies give a multi policy discount.

Of course, life jackets are a must, but a GPS system can also be very useful. Having this type of safety equipment onboard can help reduce rates. Also, you can bring down the cost of the policy by increasing deductibles and lower liability and property coverage. But be cautious when doing this, because being underinsured is just about as bad as being uninsured.

Now that I know a little bit more about boat insurance, I’m about to go so I can call around to compare some prices.