Like your car or house, your boat is an investment that you can insure to protect it from theft or damage. And whether you have a fishing boat, pontoon, or a yacht, a trusted insurance company can help you determine the coverage you need. Below are some policies to consider.

What Boat Insurance Coverage to Get

1. Actual Cash Value 

In the event of an accident, an actual cash value policy will only cover you for the estimated market value of the vessel—the replacement amount minus the total depreciated value. This policy offers limited coverage but is relatively low in cost, making it an economical option for boat owners.

2. Agreed Value

In an agreed value policy, you are covered for the amount that both you and the insurance company agreed to prior to an accident or total loss. There’s no depreciation deducted from the settlement amount. However, some boat parts like the trailer and canvas sail will normally suffer excess wear and tear and are covered at a depreciated value.

3. All Risk Policy

With an “all-risk” policy, boat owners are covered for any damages not excluded from the insurance agreement. Typical exclusions are damages caused by normal wear and tear, animal attacks, ice and freezing, defective or damaged machinery, denting, and destruction from mussels, mold, and insects.  

4. Third-Party Liability

As part of a comprehensive insurance policy, third-party liability covers boat owners, their guests, and crew members for property damage or injuries they cause to others. It typically covers medical payments, wreckage removal, and fuel spillage. If you use your boat on inland waterways or keep it in a marina, local laws may require you to have this insurance.

5. Yacht or Large Boat Policy

Not all boat insurance policies can cover the same type of watercraft. Vessels longer than 27 feet require yacht insurance, which has broader and more specialized coverage. Consult your insurance company to know for sure if your boat needs this type of policy, especially if it has wider navigational limits and uncommon risks.

When you need help deciding on a boat insurance policy that’s best for you, turn to the professionals at Somers Agency. As the trusted insurance company in Lorain County, OH, they offer an extensive range of options for coverage, from homeowners to business insurance. Get in touch at (440) 324-3447 to request boat and car insurance quotes or view their full list of services online.