Watercraft
Boat insurance policies vary widely in what they do, and do not, cover based on a number of considerations, including the type of boat, the waters it will traffic, and how many months of the year the boat will be used. Still, there are a few basic kinds of coverage you can expect to receive, as well as some potential discounts for safe boaters.
Physical Damage
This coverage insures your boat against damage and loss caused by common risks, such as sinking, fire, storms, theft, and collision. The property covered can vary, but the policy will usually cover the hull and other permanent components, such as:
Motors
Extra fuel tanks, batteries, etc.
Anchors
Onboard safety equipment, such as flotation devices and fire extinguishers
Trailers may or may not be covered, depending on the policy.
When choosing your policy, be sure to ask whether you will be insured for the boat’s replacement cost or its actual cash value. A replacement cost policy will reimburse you the cost of repairing the boat to its original condition or replacing the boat with the same or a similar model. A policy based on actual cash value will reimburse you for the current market value of the repair or replacement (the original price minus depreciation).
Liability Coverage
This coverage applies if your boat causes injury to others or damage to other boats, docks, or structures. Keep in mind that the injury or damage can be due to direct contact with your vessel or situations caused by your vessel, such as large wakes. Good liability coverage may provide protection against lawsuits, including the payment of settlements and legal fees.
Other Coverage
Your insurer may offer additional kinds of coverage to go with your basic boat insurance. If you have other needs, ask your insurance agent what coverage is available.
Discounts
The best way to lower your boat insurance premiums is to become a safer boater. For example, many insurers offer discounts to boaters who have completed an approved boating safety course. Your boat may also qualify for a discount by passing the U.S. Coast Guard Vessel Safety Check.
