Boat Insurance – Do You Need It?

We’re all familiar with the scene of a sorrowful boatman trying to keep his craft afloat by bailing the water that has pooled around his ankles with a bucket.  Captain Jack Sparrow opened the film, Pirates of the Caribbean, in this unenviable predicament.  He must not have had boat insurance from https://floridainsurancequotes.net/boat-insurance-quote/.

What Makes Boat Insurance Different?

New boat owners often make the mistake of believing that their homeowner’s insurance extends to their boat.  In limited ways, it does, but not to the level that they believe.  For instance, if a tree falls on the homeowner’s boat while it’s parked in the driveway, some coverage can be expected, but that protection does not extend to the boat when it is in use on the water.

Boat insurance policies fall somewhere in between how an auto insurance policy and a homeowner’s policy are structured.  Like a house, you can live on a boat, and like a car, your boat is mobile, so all related factors have to be considered when insuring a boat.

Like car insurance, boat insurance offers protection for boaters against the costs associated with accidents while in use.  One major difference is that boat insurance if often not mandatory – particularly for recreational boaters, so it is up to the boat owners to take the initiative to protect themselves and their boats.

Types of Boat Insurance

There are two types of boat insurance – actual cash value and agreed value.  The difference is that actual cash value policies factor the depreciation of the boat, which results in a lower settlement in case of a total loss event.  An agreed value policy does not factor depreciation, so a payoff on this type of policy would be much closer to a replacement value.  Of course, an agreed value policy is more expensive because of this.

What Kind of Boats Can Be Insured?

Many different types of watercraft can be insured.  Personal water crafts, dinghies, boats, yachts (boats longer than 27 feet), sailboats, and others require different kinds of coverage because of their disparate make-up and value.

While almost any type of craft can be insured for a price, driving/boating records play an important part in determining what type of insurance you will be offered, and at what price.

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