Boat insurance is a policy that protects your boat. It covers damage to your boat and damage that you cause with your boat. There are different kinds of coverage. One is “agreed upon hull value.” This is when you and the insurance company agree upon the value of the boat when you purchase the policy. If the boat is damaged and is a total loss, then this is the amount the company will pay you.
Actual cash value leads to lower premiums, but you will get less money in the case of a total loss. The insurance will pay the current market value for your boat. The value is based on a number of factors, including the shape of the boat at the time of the loss.
You can also get a liability policy. It won’t pay for your boat in the event of a total loss, but it will pay if you damage someone else’s property. Towing and salvaging of your boat may be covered should there be a total loss.
Most boat insurance policies also have medical coverage, which helps if you or your passengers are injured on your boat. Your policy might also cover fuel spill cleanup should your boat pollute the water. A boat can spill fuel and other chemicals into bodies of water. If you have boat insurance, then you won’t be faced with the cost of removing the chemical spill.
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