Whether you take out your boat for a quick fishing trip once a year or have decided to convert your yacht into a liveaboard, boat insurance is going to be absolutely vital. This type of coverage will protect you and your assets in the event of any accidents on or off the water. Here is a quick look at some variables that you will need to keep in mind when choosing the best insurance for your own needs.
The laws regarding this type of coverage can be quite complex, and that is why it is always advisable to go with an insurance agent who has experience with these particular policies. Even if the state where your boat is stored or used does not require insurance, one of the marinas or jetties that you frequent might. No matter the legal requirements, it is always best to err on the side of caution and explore your coverage options.
What Do Boat Policies Cover?
As with most other forms of insurance, these policies are going to be a blend of property damage liability and bodily injury liability. If the boat is ever damaged or happens to damage other property such as a dock, then the policy will cover some or all of the costs for repairs and replacements. Anyone who is injured on the boat or by the boat will also receive compensation to treat their injuries.
Agreed Amount Value or Actual Cash Value
One of the most important choices that a boat owner will need to make is whether they would like an agreed amount value policy or an actual cash value policy. With an agreed amount value policy, the boat owner and their insurance provider will determine the total value of the boat in order to create a static insurance policy. Actual cash value policies, on the other hand, take depreciation into consideration. These policies are generally much more affordable, but the coverage will continue to go down over time.