Boats are not covered by other types of insurance, thus requiring coverage specific to boats. A number of variables affect the price of the policy including type of boat, boat characteristics, type of insurance and type of coverage.
Boat insurance can cover a wide variety of boats including power boats, jet boats, sailboats, catamarans, fishing boats, yachts, ski boats, dinghies, personal watercraft and house boats. Some factors insurers might consider in determining if a specific boat will be covered are the age of the boat, the boat’s condition, value, the number of owners, length and speed.
There are at least two methods for determining the value of the boat: agreed value and actual cash value. Agreed value policies value the boat at an agreed amount between the insurance company and the customer at the time the policy is written. This coverage does not factor in depreciation and often costs more. Actual cash value coverage determines the value of the boat at the time of loss. This coverage accounts for depreciation and is often less costly.
Most policies have navigational limits. Many limit travel to the inland or coastal waters of the U.S. and Canada. In addition, some areas could be excluded for security or political reasons. If customers intend on travel outside of the limits, they should contact the insurer prior to the trip.
Boat insurance generally includes coverage for bodily injury, property damage and physical damage. Additional coverage can be purchased to cover vandalism, theft, fire, flood and personal property on the boat.
Additional factors in determining the final price of coverage include liability limits, deductible, driving records, the completion of boating safety courses, equipping the boat with safety equipment and lay-up periods.
When deciding to purchase a personal boat, boating insurance should not be overlooked. Instead, it should be considered a necessity.