Boat Insurance

If you are the owner or operate a boat or other marine craft, marine insurance can protect your craft and its occupants from loss, damage, theft, or injury. Also, any costs you may owe to other individuals or property as a result of an accident.

Boat or marine craft insurance typically includes basic coverage for wreckage or loss, with a variety of alternatives available. There are specialized boat insurers and brokers who can provide coverage for common insurance risks and activities for boat owners.

Boats and other maritime crafts can be expensive investments. In layman's terms, they can be quite costly (simply making the purchase can be a hassle if your revenue isn't consistent). Accidents sometimes happen, and you may have to pay a big financial loss as a result. For most boat owners, marine insurance is a must.

As the entire sum insured for the boat and equipment, marine insurance policies will determine either an agreed value or a market value. This is comparable to automobile insurance.

What am I protected against?

Physical damage coverage is included in marine insurance, and it protects your boat, motor, and related equipment. Theft, fire, vandalism, catastrophe, and storm damage can all cause accidents.

Factors Influencing Insurance

When deciding whether or not to offer coverage, insurers consider a number of variables. Even a ship can be insured, but only for a fee. To ensure that the policy you purchase matches your needs, you may want to consider the following:

  • Value of a Boat's Age and Length
  • Speed/Horsepower
  • Condition
  • Primary address (If the boat is used as a primary residence)
  • Type (Utility, cruiser, Inboard, Outboard, performance boat)
  • Homemade (At times Boats don't have a serial number)
  • Ownership of houseboats without a motor (more than 2 owners)
  • Where will it operate? (Ocean, lakes, bays, rivers, Great Lakes)

    • Boat Insurance Types

    Boat insurance is divided into two categories: "AGREED VALUE" and "ACTUAL CASH VALUE." What distinguishes them is how they handle depreciation.

    Agreed value

    An "agreed value" policy insures the boat for the amount it was worth at the time the policy was negotiated. While it may be more expensive upfront, a total loss of the boat has no depreciation (some partial losses may be depreciated).

    Actual cash value

    "Actual cash value" plans are less expensive upfront, but they account for depreciation. To put it another way, the policy will only pay up to the boat's real cash value when it is declared a total or partial loss. As your boat ages, your insurer will most certainly demand an actual cash value policy—which is typically the best option.

    Optional cover

  • Lay up – Feasible premiums when your boat is stored on a trailer for a designated period
  • Racing (sailboat) – Guard your sailboat during loss or damage
  • Waterskiing or flotation devices cover – Liability cover for waterskiing and flotation devices
  • Contents – Cover for contents included in your boat’s lockable cabin