Watercraft or Boat insurance is similar to auto insurance, but of a specialized nature. It contains several coverages such as Physical Damage and Liability coverages that you may be familiar with from your personal auto policy. Boat coverages typically get even more specialized once you get the size of the boat is greater than 26 feet in length and may require more specialized underwriting information and requirements such as Safety Training or a Captains License. Boats/Yachts are also rated or evaluated based on the waters that are intended to be navigated, such as Inland Waters – North America, Mid-Atlantic or Carribean waters. The most common coverages you will find on Boat/Yacht policies are:
Physical (Hull) Damage Coverage: This provides protection for the hull of the vessel in the event of a collision with another boat aor an object in the water. There are two types of Hull Coverage available, Agreed Value and Actual Cash Value:
Actual Cash Value: provides coverage for the Hull damage but Depreciation may be applied against the replacement cost. The insurance carrier usually offers a discount for purchasing this type of Hull coverage.
Agreed Value: provides coverage for damage to the Hull but Depreciation is not applied against the settlement . This is replacement cost coverage.
Liability Coverage: This provides protection for you in the event of bodily injury or property damage to others due to your negligence or fault.
Personal Property Coverage: Unlike Auto Insurance, Boat/Yacht policies can offer substantially more coverage for Personal items such as clothing, fishing
equipment, radar and GPS devices, music and entertainment systems, skis, etc.
Towing and Assistance Coverage: Similar to Automobile Towing/Labor this coverages provides up to a specificied dollar amount to have your vessel towed into the dock or repair facility when it becomes inoperable while you are on the water. Services such as fuel delivery and roadside assistance when towing
the vessel may also be provided.