Boat Insurance

Unless you’re moving to the middle of the dessert, boat owners should understand how marine insurance differs from that of your car. Thought one goes by land and the other by sea, there are variations beyond the basic coverages common to both. In fact, “boat and yacht” policies can even vary between companies that specialize in marine insurance.

Liability and physical damage coverage form the core of any policy.

Liability Coverage

Covers legal obligation to third parties due to injury, loss of life or property damage.

Physical Damage Coverage

Reimburses for damage to the boat and its machinery. The best physical damage policy is an “all risk” which covers any cause of loss not specifically excluded in the policy, like wind storms, vandalism and collisions with the dock. It is recommended selecting a policy that continues to cover your vessel even when it is stored or being transported by trailer.

When comparing physical damage coverage you should know whether an insurance settlement is based on “agreed value” or “actual cash value”.

Agreed Value

Reimburses the insured for the amount listed on the policy in the event the vessel is a total loss.

Actual Cash Value

Takes into account depreciation and the condition of the boat at the time of loss. The latter option provides less coverage but the premium is usually reduced.

Additional Marine Coverage:

Medical Payments

Pays your first aid, ambulance and hospital bills in case of accident. Also covers any passengers injured on your boat.

Towing and Assistance

Pays for emergency assistance such as boat towing, emergency repairs while underway or fuel delivery at sea.

Personal Property

Reimburses for loss of personal effects, clothing, fishing gear and more.

Uninsured Boater

While not mandatory, this coverage compensates you and your passengers for injuries caused by another boat owner who carries no liability insurance.