Boat Insurance: Protect Your Dream

You saved for a few years and now have the boat of your dreams. You need to protect that dream. Just as we purchase car and home insurance, we need to think about boat insurance. But, how do you best protect your boat? 

First, talk with your independent insurance agent. You might be able to add your boat onto your homeowner’s insurance policy. When you are having this conversation, take the time to be sure they understand boats and the value of boats.  

Second, decide if you want agreed value or actual cash value. Agreed value costs more, but it will cover the stated value of the policy if there is a total loss of your boat. Agreed value will also cover partial losses where you receive new parts with little to no depreciation taken into account. Actual cash value will cost you less in premiums because the payout takes depreciation into account and you will only be reimbursed for the boat’s current book value. 

Third, if you chose an agreed value policy, be aware of the salvage coverage. If your boat sinks, you want to have it salvaged, and then repaired. Ask the insurance agent questions about the scenario of sinking and ensure you are adequately covered. 

Fourth, think about how you use the boat. Will you need hurricane haul-out assistance, fuel spill coverage or coverage on a trip? All of these are questions to talk about when purchasing your boat insurance. 

Understanding boat insurance can be easy following these four steps to protect your dream. Make the smart choice and check it out today.