Boat Insurance Guide 101

When it comes to insuring your boat, it’s often best to separate your boat insurance from your homeowner’s policy. Many homeowners’ policies limit or don’t cover marine-specific risks, such as salvage work, wreck removal, pollution or environmental damage; but there are exceptions.

Insurance Factors

Insurers consider many factors when deciding whether or not to offer a policy. Almost any boat can be insured— for a price. You want to consider the following to make sure the policy you purchase meets your needs:

  • Value
  • Age of the boat
  • Length
  • Horsepower
  • Type

Types of Boat Insurance

There are two basic types of boat insurance. These are agreed value and actual cash value. What sets them apart is how depreciation is handled.

An agreed value policy covers the boat based on its value when the policy was written. While it can cost more up front, there is no depreciation for a total loss of the boat.

Actual cash value policies cost less up front, but you will need to factor in depreciation. In other words, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss. 

What Boat Insurance Covers

How and where you boat determines the type of coverage you need. An “all risk” policy will offer the best protection. However, an “all risk” policy does not cover every type of loss. In insurance terms “all risk” just means that any risk not specifically omitted in the policy is covered. This includes wear and tear, denting, animal damage, manufacturers’ defects, design defects, ice and freezing.

You may be able to add extra coverage. Some options might include: medical payments, personal effects, uninsured boaters liability, and towing and assistance. Most policies will cover permanently attached equipment, as well as items like trolling motors, tools, seat cushions, and more. Be sure to discuss these options with your insurance agent.

Contact our Insurance Experts Today

We have a team who is ready to handle all your personal insurance needs. Give us a call at 712-277-2424 or fill out this form online. At IBC, we’re more than insurance.