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Boat Insurance

Boat insurance protects the boat while it is in and out of the water. The coverage options covers everything from property damage to towing costs if the boat has to be removed. Additionally, the coverage is applied if the boat is involved in an accident causing injuries.

Overview of boat insurance

Boat coverage offers different types of protections for the property owner. Specialized coverage handles specific upgrades to the boat. Consequential damage also provides protection for routine wear and tear unreleated to environmental factors like corrosion. Salvage covers the towing costs in the event that the boat has to be removed because of extensive damage. Cruising extension protects the boat while the person is away on vacation and has to leave the boat unattended.

Types of insurance

Agreed and actual cash value are the two main types of policies available. The agreed option covers the value of the boat at the time the policy terms are agreed upon. Actual cash value is the less expensive option that only covers the boat for the current value of it when involved in an accident. The actual cash value takes into account the rate of depreciation.

Who is it for?

The risks for replacing a newer boat is slightly higher. This means that more coverage may be needed to limit the amount of out-of-pocket costs if an accident or unexpected damage occurs. Older boats may be lesser in cash value but may still lead to out-of-pocket costs if a person is injured in accident and requires medical attention. For this reason, anyone with a boat, regardless of its age, should carry some form of coverage. When injury claims, accidents, towing or emergencies happen, the property owner will be responsible for covering those out-of-pocket costs.

While many are under the impression that their homeowner policy will cover their boat, it’s always prudent to get additional coverage. A smaller boat may have sufficient coverage under the basic homeowner policy, but a larger boat may require another level of coverage. Reviewing the amount of existing coverage with a professional will help identify potential gaps in coverage.