Many people love having a boat for fishing, water skiing, or casual trips across the water. However, with any large personal investment, it is important to keep it protected. Boat insurance can provide some very helpful assistance in covering expenses related to boat damage or damage caused by other vessels. Below, learn about boat insurance and how the process works. 

What Are the Two Boat Insurance Categories?

As for how they calculate payouts, policies fall into one of two categories. The first is the agreed value. This option factors in costs based on the value of the boat when the policy was written. It may cost a little more upfront, but it’s useful for those who want to get the most out of a payout when it happens.

The second option is the actual cash value. This option takes depreciation into account when determining payouts. Depreciation includes wear and tear from age and use, as well as any damage that occurs from accidents. 

What Does Each Policy Type Cover?

Beyond the categories concerning value calculation, there are different types of coverage designed for different situations. One of the most common is boat insurance property coverage. This provides protection if a boat is damaged in an accident or stolen, whether it be on the water or on land. 

Liability coverage provides coverage in case a person’s boat damages someone else’s property. If the boat harms another person, medical payment coverage can cover hospital bills and medication. Finally, uninsured watercraft coverage can provide relief if a person’s property is damaged by an uninsured boat. 

How Are Prices Determined? 

As with any type of coverage, deductibles and limits will impact the cost of monthly premiums. The size of the boat, the places where it’s used, and even the places where it’s stored can impact the costs as well. This is because all of these determine what condition the boat will stay in and how likely it is to be damaged or cause damage to others.

Are you looking for boat insurance? Choose High Rock Insurance Agency in Lexington, NC. This insurance agency is available 24/7 to answer questions and help people find the perfect policy for their needs. They also work with a variety of insurance carriers, so they can provide plenty of options. To learn more or request a quote, visit them online or call (336) 236-9022.