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3 Details Every Boater Should Know About Insurance June 12, 2019

Kalispell, Flathead
3 Details Every Boater Should Know About Insurance, Kalispell, Montana

Summer is finally here, which means it’s time to get your boat out and ready for peaceful weekends on the lake. However, even the calmest water can hide unexpected risks, so every boat owner should have all the insurance they need before setting sail. Below are a few points to understand about insuring your vessel.

What You Should Know About Boat Insurance

1. Auto & Home Insurance Limits

Many new boaters are under the impression that their home or auto policy will cover their new vessel. However, this is only true in limited circumstances. For instance, your homeowner’s policy will cover your boat when it’s stored at your house, and the vessel is only included in your auto insurance when you’re towing it. Neither policy will protect your boat when it’s out on the water, which is where a boat policy comes in.

2. Agreed Value vs. Market Valueinsurance

Boat insurance policies are either based on the vessel’s agreed value — usually the sticker price you paid — or its current market value. Like cars, boats depreciate quickly, so the agreed value is often best for newer, more expensive vessels. If you own an older model, purchasing insurance based on its market value will usually provide the coverage you need and lower your monthly rates.

3. Boat Policy Restrictions

The risks associated with boating depend a great deal on where you go, so most policies are only written to cover a certain area. For instance, your coverage might be limited to inland waterways, or within a specified distance of certain areas of the coast. Before setting out on a journey, check with your insurance agent to ensure your route is covered.


As Northwest Montana’s premier insurance agency, The Insurance Exchange offers high-quality, affordable policies to boat owners throughout the Flathead Valley. By working with some of the industry’s leading carriers, their agents can find coverage tailored to your unique needs. Visit their website for more on their services, follow their Twitter for more tips and advice, and call (406) 756-2500 now to request a free quote.