Congrats on the new boat. There are definitely plenty of sunshiny days on the water in your future. But, there are a few Is that need to be dotted before it’s time to dive in. You’ll need boat insurance, for one, and here’s everything you should know about that.
Where do you get boat insurance
You probably have car insurance, and if you own a home, you probably have homeowners insurance. You might even have life insurance too. The great news is that many companies that offer those insurance products, might also offer boat insurance. The even better news is that if you purchase a product from an insurance company that you already deal with, you might even get a bundled discount.
What information do you need for your application
In order to obtain boat insurance, you’ll need to collect some pertinent information. Much of the information will likely be contained in the sale documents that you have been given. You’ll need specifics about the boat including the age of the boat, it’s value, length, and horsepower. The application will also cover where you plan to operate the boat for instance: in a lake, river, or in the ocean.
Different types of boat insurance
There are a few different types of boat insurance policies that you might consider. An agreed value policy will cover the cost to replace the boat on the day the policy went into effect. An actual cash value policy will factor in the diminished value of the vessel based on depreciation. The first policy type costs more, but pays out more on loss. The second type is more budget friendly, but pays less on loss.
What your boat insurance covers
Each policy is different based on your specific factors. But, most boat insurance policies cover some standard things. An all risk policy is considered the gold standard and covers any problem or cause of loss that isn’t specifically excluded in your policy documents like normal wear and tear, manufacturer defects, and things of that nature. Most policy covers all the moving parts of your boat like the motor, anchor, and more.