Owning a boat is expensive. Fuel, maintenance, docking, storage and insurance are only some of the associated costs. One way to offset these expenses is to rent the boat out on an hourly, daily or weekly basis. As this option has increased in popularity over recent years, websites handling peer-to-peer boat rentals have become more common. However, what many boat owners may not realize is that their personal recreational marine insurance policy will not provide coverage during rentals leaving them exposed to a number of potentially costly liabilities.
Risks of P2P Boat Rentals
Many of the websites handling P2P vessel rentals have various safeguards in place. For example, they require renters to sign an affidavit and provide proof of previous boating experience. Nonetheless, boat rental risks abound. These include:
- Damage to the rented boat
- Bodily injuries
- Damage to other vessels, equipment and marina infrastructure
Without insurance, the boat owner may be responsible for covering the costs associated with these risks.
Diminish Risks With Rental Insurance
Personal watercraft rental insurance is designed to provide boat owners with the vital protection they need when renting out their vessel. Owners should look for insurance that includes hull, watercraft, and general liability coverage. It is also recommended that they have the rental agreement reviewed by an attorney to make sure that all eventualities are covered by the policy.
Boat rentals can be an excellent way to pay for the many expenses that come with ownership. Moreover, a specialized insurance policy is essential to ensuring that the benefits outweigh the costs of P2P rentals.