Boat Insurance

Boat Insurance Information

Boat insurance is a must for all boat owners. If you own a boat without insurance, then you are leaving yourself open to huge financial risks. With insurance coverage, you are guaranteed to receive financial help in the event of certain mishaps. Without coverage, you are solely financially responsible for everything that occurs with your boat.

If you’ve got a huge boat, like a yacht, then you will benefit from coverage that closely mimics the form of homeowner’s insurance. But if you have a smaller boat, then you are better off with coverage that is similar to a car insurance policy. At the very least, you should buy coverage that is for bodily injury and property damage.


It’s likely that boat coverage is not in effect for the entire year. It’s possible that coverage is only active during boating season. It depends on your insurance carrier. Also, you should understand how quickly a boat can depreciate in value. As soon as the boat hits the water, its value goes down. Considering this, you might want an “Agreed Value” policy. This policy provides you with the money to fully replace a destroyed boat by providing a value you agreed upon when purchasing the policy. “Market Value” policies provide coverage that pays out for the current appraised value of the boat.

It’s important to know where, when and how often you’ll be using your boat. That’s because some policies cover freshwater locations while others are for vessels that venture out beyond the coast in the open sea. Speak with your insurance agent to decide what is your best option.