Boats, Jet Skis, and Your Umbrella: Underlying Limits Matter

From Horseshoe Lake to the stretch of the Mississippi near the Chain of Rocks, Granite City has no shortage of places to launch a boat or jet ski. Most local boaters know their watercraft needs its own coverage. Fewer realize that an umbrella policy only works well when the boat underneath it is insured the right way.

How the Layers Stack Up

An umbrella policy adds liability limits above your existing policies, not in place of them. Most umbrella carriers require you to carry certain minimum liability limits on your auto, home, and watercraft policies, often called underlying limits. If a serious boating accident leads to a large claim, the boat policy pays first, and the umbrella generally steps in once those underlying limits are used up.

Where Boaters Run Into Gaps

• Limits below the requirement: If your boat liability is lower than what the umbrella requires, you may be responsible for the difference between the two.
• Relying on a homeowners policy: Homeowners coverage for watercraft is often limited to small boats or low horsepower, and personal watercraft are commonly excluded.
• Watercraft not listed: Some umbrellas require boats or jet skis to be disclosed, and some exclude larger vessels.
• Lending to friends: Coverage for guests operating your boat or jet ski can depend on both policies’ wording.

A Note on Boating Rules

Illinois requires many motorboat operators born on or after January 1, 1998 to complete a boater safety course, and Missouri has its own requirements for the other side of the river.

Before Next Season

The off-season is a good time to compare your watercraft liability limits with your umbrella’s underlying requirements, confirm every boat and jet ski is listed, and review how guests are covered. Our post on fuel spillage and boat insurance covers another watercraft risk worth knowing.

Maryland Moats Lexow Insurance in Granite City, IL can line up your boat policy with your umbrella insurance so the layers fit together. Policy terms vary. Boaters across Granite City, IL and the Metro East can reach out to Maryland Moats Lexow Insurance anytime.