Answers To Your Frequently Asked Questions About Boat Insurance
Your boat is a huge investment, and you want to ensure that your investment is protected, just like your vehicle or house. Although boat insurance is compulsory in many states, purchasing boat insurance can protect your investment from any potential damages or cover any expenses that occur to other watercrafts if you are in a boating accident. Here are some answers to a few frequently asked questions about boat insurance.
What Is Covered Under Your Boat Insurance Policy?
Policy coverage will vary upon insurance provider and what extras you want to add to a base policy. However, here are a few basics that are typically covered by a standard boat insurance policy:
- Damage to your boat, including the hull, motor, sails, and other equipment
- Fuel spill liability
- Basic liability
- Medical coverage
- Damage to other people's boats
- Bodily damage for you and others injured during an accident
Ask your insurance provider about optional policy upgrades, such as coverage for your personal property that was lost or damaged during a boating accident, coverage for any fishing equipment on the boat, or coverage for ice or snow damage during winter.
What Types of Boat Insurance Are Available?
Typically, you will be offered two different options for your boat insurance: actual cash value and agreed value. An actual cash policy typically costs less, but it means that you will be provided with the depreciated actual cash value of the boat at the time of the accident. An agreed value policy means you will pay more for your monthly premiums, but this also means that the depreciation of the boat will not be a factor and if the boat is salvaged, you will be paid for the value of the boat when the policy was first written.
What Factors Will Impact the Policy's Price?
Just like car or homeowner's insurance, there are several factors that will impact how much you will pay for your boat insurance. For example, the insurance company will ask where the boat will be stored during the off season, if applicable. The policy could cost less if you have a dedicated, protected space to store your boat during the colder months, such as a garage or a covered storage space in a marina.
Your driving record and your boat ownership record could also impact your monthly boat insurance costs, as well.
Boat insurance is a great way to protect your family and investment in the event of a boating accident. Contact an insurance agent with any other questions you have any boat insurance.