A standard homeowners insurance policy may be able to cover a small boat that is used on inland waterways. You will need a boat insurance policy, however, if you have a larger vessel, such as a yacht, sailboat, or dinghy, or if you use the boat outside a coastal inlet or away from the beach.

What Boat Insurance Can Cover

A typical boat insurance policy will cover several forms of damage, but it may exclude coverage for wear and tear, design and manufacturing defects, animal damage, and other perils. You may be able to choose additional coverage for a specific feature on your boat or a loss due to wear and tear (consequential damage).

An insurer may offer other coverage that extends beyond what is covered in a standard policy. For instance, you may choose uninsured boaters liability, personal effects, medical payments, and towing and assistance coverage. You may also be able to purchase additional coverage that will apply for a limited time if you plan to take your boat outside the United States.

How a Boat Insurance Policy Can Address a Vessel’s Value

Some boat insurance policies are based on agreed value. An agreed value policy provides coverage based on the boat’s value when the policy was written, even if there is a total loss years later and the boat has depreciated in the intervening years. That type of policy may have higher premiums.

An actual cash value policy will factor in depreciation. If the boat is a total or partial loss, the insurance company will pay an amount up to its actual cash value at the time of the loss. That type of policy will most likely have lower premiums than an agreed value policy.

How Boat Insurance Companies Set Rates

A company that offers boat insurance will base its premiums on the type, size, age, horsepower, and condition of the boat, as well as how and where it is used and how many people own it. Factors such as whether you have taken a boating safety course, whether you have a good driving record, and where you plan to store your boat if there is a hurricane can influence your premiums. If you only use your boat during part of the year and keep it in storage the rest of the time, you can enjoy low rates.

Compare Boat Insurance Options for 2021

Petruzelo Insurance can help you figure out what type of coverage best suits your needs. We can get quotes from several companies that offer boat insurance so you can select the policy that is right for you. Contact us today to learn more.