Boat insurance programs are normally designed to provide coverage for vessels up to 26 feet in length. If your boat is longer than 26 feet then the insurance company will classify it as yacht and suggest that you apply for yacht insurance.
insurance provides coverage for the costs of repairing or replacing
a boat that has been damaged or destroyed by collision, fire, theft,
vandalism, lightening or windstorms. Most boat coverage is broadly
tailored to cover other things besides the boat's structure such
as its machinery, outboard motor, auxiliary equipment and personal
property within the boat. You can also purchase boat insurance without
what is called contents insurance, however as it is water-borne
you are advised to get comprehensive coverage in case you are confronted
with a worst case scenario that causes you to lose all of your belongings.
A boat insurance policy can provide physical
damage coverage on an Actual Cash Value or an Agreed Amount Value
basis. Actual cash value policies pay you the market value of your
boat less the depreciation of the value of the boat at the time
of the loss. In the event of a total loss, used boat pricing guides
and other resources are used to determine the approximate market
value of your vessel. A partial loss is arrived at subtracting a
percentage of the depreciation from your compensation for the total
cost of the repair.
Agreed Amount Value policies mean you and
the insurance company have agreed on the value of your vessel and
in the event of a total loss you will be paid that amount. Agreed
Amount Value policies, which are usually much more expensive than
Actual Cash Value policies, also replace stolen or damaged items
for new ones without any deduction for depreciation. Most Agreed
Amount Value policies require you to provide the actual cash value
of certain property such as sails, protective covers, batteries,
dinghies, trailers and outboard motors.
You can also purchase Physical Damage boat
insurance. This kind of coverage is usually subject to a deductible.
The boat and motor usually have the same deductible with additional
deductibles for the trailer and personal effects. The deductible
is the amount you are willing to pay in case of a loss. The higher
the deductible, the lower your insurance premium. Boat policy deductibles
can be calculated as a percentage of the vessel's value or can be
based on flat amounts of $250 or $500.
A good boat insurance policy should also
offer contents coverage to provide protection for those items not
intended for the normal operation of your boat. This includes compensation
for the loss or damage of such items as portable TVs, cellular phones,
stereos, radios and cameras.
As accidents are common on the water, you
should make sure that your comprehensive boat insurance coverage
also includes liability protection. Liability insurance pays for
damages you are legally responsible for if your boat injures someone
other than a family member. It also covers you if you accidentally
hit another boat or if a passenger is hurt while on your vessel.
A good comprehensive policy will also include medical coverage should
someone be injured while sailing in, boarding or leaving your boat.
Other basic coverages you should look for
when purchasing boat insurance are uninsured boat owners coverage
that protects you if you are in an accident with an operator of
an uninsured boat. Make sure that the boat insurance policy that
you select also covers Commercial Towing and Assistance should your
boat break down while on the water or require assistance from rescue
There is boat insurance coverage available
on the market for just about any kind of vessel ever sighted on
the seas. Although boat insurance can be costly, it is a worthwhile
investment for those who are concerned with safety as well as the
protection of their floating asset.