Boat Insurance

Things to know about Boat Insurance


Boat insurance is a special variety of motor vehicle insurance that is designed to specifically protect boat owners from the financial repercussions of damage and/or injury that can happen anytime while enjoying the pleasures of boating. In some instances, like car insurance, boating insurance is a legal mandate.

Who needs this kind of coverage?

Boat insurance coverage is somewhat similar to what might be a hybrid homeowners’ and vehicle insurance policy. Those with larger vessels, such as yachts, will benefit most from a policy that closely follows the form of a homeowner’s insurance policy, while those with smaller recreational craft will be better served by coverage that is more like an auto insurance policy. At the very least, boat owners will probably need to purchase coverage that is for bodily injuries and property damage. This will include injuries that occur on the boat and injuries or deaths that might happen to other related parties.

Policy Components

Boat owners are well served in learning the aspects to their boat insurance that differ from their vehicle and homeowners policies. For most boat owners, coverage is not engineered to be in effect for the entire year, usually being least often needed during the off-season in which a boat is likely put out of the water. Additional coverage is also offered for any damage that might happen during these off-season times.
Another interesting part of the insurance pie is how quickly a boat can depreciate in its monetary value. Just like purchasing a car, the minute you start spinning your boat’s propeller and commence with the inaugural cruise, it will quickly decrease in its value. This is where an “agreed value” policy can be helpful as it this type of coverage provides the boat owner with the ability to have the boat replaced or to be provided with a cash value that was previously agreed upon before the policy was made official. Market value policies have coverage that is determined by the current appraised value of the boat, taking into measure its depreciation. This can mean a lower payout, but it also can mean lower premiums too.

Additional Coverage

Boat owners need to decide where, when and how often they intend upon using their boat when looking for the right policy. Some policies only cover freshwater locations while others can be designed for vessels that venture out certain distances beyond the coast in the open water. Owners are well advised to seek the many ways that can be employed to lower their costs like taking a boating safety course or by installing safety extras such as an engine kill-switch, and so much more. Talk with an insurance professional for more information in finding the best boat insurance policy that fits your needs.

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