Boat Insurance: Types of Policies

There are two different types of policies for covering your boat.

Actual Cash Value

Outboard motor boat in the water.This type of policy pays for the cost to replace the boat minus depreciation at the time of the loss.  Pricing guides for used boats and other resources are used to determine the boat’s approximate market value.

Agreed Amount Value 

Pays you the amount you and your agent agreed upon when the policy was written. In case of a loss, that is the amount that will be paid to you. Agreed amount policies will also replace old items for new ones in case of a partial loss, without any reduction for depreciation.

Boat insurance typically covers repairs to your boat if it is accidentally damaged or destroyed by a collision, fire, theft, vandalism, windstorm or lightning. This coverage is for the boat, its machinery, fittings, outboard motors, auxiliary equipment, permanent attached equipment and personal property. You can get coverage add-ons that cover things like an expensive prop or accessories, towing from across the lake to safety. Salvage coverage will pay to remove your damaged boat.

Boat insurance also provides coverage for Personal Liability up to $500,000 for bodily injury or damage to property or others. Uninsured boater provides coverage for bodily injury caused by an uninsured motorist. Medical payments for medical care following an accident, regardless of who’s at fault.

Personal Property Coverage protects personal property on the boat including items such as your clothing, stereo system, cameras, fishing equipment and other personal items.

Listed below are a just a few discounts that you may be eligible for, check with your insurance agent on what is offered through your specific policy:

  • Diesel powered boats
  • Coast Guard approved extinguishers on board
  • Ship to shore radios
  • Claims free
  • Multiple policy discounts for same insurer (i.e.: auto, home or umbrella policy)
  • Completion of a Safe boating course

Personal watercraft such as Jet skis and Wave runners require separate boat insurance.

Enjoy the open waters with confidence – contact us for a free, no obligation quote

By: Insurance Advisors, Inc.
Sources: Insurance Information Institute