Types of Boat Insurance
Boat insurance can be subcategorized into two basic types:
Agreed Value Policy
An agreed value policy is a type of boat insurance where you and your insurer agree on the value of your watercraft when you take out the policy.
Actual Cash Value Policy
An actual cash value policy, in contrast, only pays up to the actual cash value of the watercraft at the time of the damage or any partial loss. The insurers offer this policy to the owners of older boats as it allows them to save money due to depreciation.
What Boat Insurance Policies Cover
Marine insurance covers several types of watercraft, including boats, PWCs, yachts, sailboats, rentals, boat clubs, professional marine services, etc. However, the policy you opt for depends on how and where you boat.
People usually go for minimum liability coverage like car owners. However, it’s recommended to choose an “all-risk” policy that includes all the essential coverage with additional coverage for wear and tear, denting, manufacturer defects, and emergency services like towing and roadside assistance.
What Does a Boat Owners’ Policy Not Cover?
Depending on the type of coverage, your policy may cover all physical damages along with theft and loss of items. However, most policies don’t cover the cost of towing a boat if it gets damaged in the water.
Is Boat Insurance Worth Getting?
Although getting boat insurance isn’t legally required by any state, it’s recommended that you buy at least minimum liability coverage.
Boat insurance also covers property damage, and since it’s affordable, it can save you a lot of money in the long run, especially if you own a boat on the East Coast, where storms and hurricanes are more common.
Does Boat Insurance Include Liability?
Yes, boat insurance includes liability coverage, which pays for damages or injuries caused by your vessel to another boat and people on board.
What Coverages Are Typical in a Boat Owner’s Policy?
Boat insurance typically covers physical damages to the boat along with property damage, theft, medical payments, and liability. However, each coverage comes with a specified deductible determined by your insurance company. You can also opt for additional coverage, such as towing, fishing equipment coverage, hurricane haul-out, boat lift, etc.
After reading this article, you probably realize that boat insurance is not too different from homeowners, car, or life insurance, as insurers consider many factors before determining your eligibility.
In addition, insurance companies vary significantly in terms of coverage and cost, so it’s a smart idea to shop around to get the best boat insurance coverage for your needs.