Insuring Your Boat

In some cases, a boater’s homeowner policy might partially cover expenses if the boat is stored on site. But policies widely differ, with some only addressing a few select issues. Protect this huge investment by taking out a separate policy with more comprehensive coverage:

POLICY TYPES

Boat insurance is most often broken up into two different types of coverage. Decisions about which one to buy are usually made based on the condition and age of your vessel. With agreed value policies, you and the insurer decide on the value of your boat when the policy is taken out. Should you experience a total loss, you will receive the agreed-upon value as a settlement. These policies are most often taken out on newer boats, which have a greater initial value.

Market value policies, on the other hand, are based on depreciation. Those who own their boat outright, rather than those paying monthly notes, typically choose this type of policy. It pays out a settlement of the boat’s worth at the time of the loss.

COST CONSIDERATIONS

There are many factors to consider when insurers are deciding whether to offer a policy, and what the cost structure will look like.

Beyond the age and condition of the boat, they’ll also discuss the boat length, speed or horsepower, type of boat (including outboard or inboard, cruisers, fishing or performance boats), the number of previous owners, and where the boat will most often operate – since there is a big risk difference between lakes or rivers and bays or the ocean.

COVERAGE DIFFERENCES

In-depth conversations with an insurance agent can give you a better idea about what’s covered on individual policies – and what’s not.

A lot can go wrong on the water, so some choose owners an all-risk policy that covers a broad range of consequential damage. Liability policies are particularly important if you typically boat in heavily populated areas, since the risk of mishaps is greatly increased.

Even a glancing collision can lead to serious damage and even injury.

Insurance policies help ease those worries. You may need to shop around, however, to find a insurance plan with the flexibility and affordability you want.

© ADOBE STOCK