Your boat is a significant investment that should be protected. Finding coverage options is not difficult, but there are some decisions to be made when purchasing a boat insurance policy. The location of your boat and the type of boat you own will both have an effect on the cost of your policy.
Every Boat Owner Is Different
There are so many types of boats that the insurance products will vary based on your specific needs. For example, you will need a special policy if you live on your boat. Some policies may require a rider for long-range cruising and offshore polices, especially if they cruise in specific areas such as the Bahamas or Bermuda. If you operate your boat in hurricane prone areas, you may have other policy restrictions as well.
Whether your needs are straight forward or more complex you will always need to consider both liability and hull insurance.
Liability is something everyone should purchase for their boat. This will protect you against claims of negligence if you cause an accident that results in bodily injuries or property damage to others. The premium for this is largely based off the experience of the driver.
Hull insurance covers the physical boat and while it is not mandatory (unless there is a loan on your boat); it is a wise idea in most cases. Both the experience of the driver and the value of the boat will play a big role in determining premium for this coverage.
The value of the boat can be determined in several ways. Book value is based off market sales data. This can be accurate for relatively new boats however are not as reliable for older boats. Stated or Agreed Value is a figure that is agreed between the insurance company and the policyholder at the time of policy purchase. Replacement Value is what the boat would be worth today rather than what it was when it was purchased. Many policies use a different valuation system for different parts of the boat such as Book Value for the Hull and Replacement Value for the equipment.
If you are unsure about the best way to insure your boat, you need to talk to an experienced agent today, who can review your existing policy, or create a new insurance plan for your boat.