What is the Difference Between Boat Insurance and Marine Insurance?

Marine insurance and boat insurance are similar, but marine insurance refers to commercial vessels, while regular boat insurance is for recreational boaters. Boat insurance helps you cover your losses if an accident occurs and property is damaged or people are injured, depending on the type of policy you take out. Boat insurance differs from home and auto insurance in one important way: it allows the policyholder to suspend coverage when the boat is not being used. This option is never available for home and auto insurance.

Boat insurance policies cover smaller boats less than 26 feet in length and offer more basic coverage than yacht insurance policies. Yachts are large, valuable vessels that tend to travel farther than ships, so yacht coverage usually contains higher limits and more specialized coverages. You can choose between the actual cash value or the agreed value, also called replacement cost coverage, in case your boat is destroyed or stolen. The coverage you choose influences your costs and decides how much the insurance company will pay if you file a claim later.

If your boating is restricted seasonally and your boat is stored during the winter, you can get deductions for winter parking. Insurance has a team of recreational insurance experts who know the coverage you need to operate a watercraft safely. While homeowners insurance can be extended to small boats, such as a rowboat or a sailboat, it won't extend to larger, more expensive varieties that require engines.

P&I coverage

is based on liability coverage included in a boat insurance policy and adds coverage provisions that comply with strict maritime laws.

Finally, it generally costs less to have insurance for fresh water than for salt, so be sure to talk to your agent about where you are going to sail. If you need expert help to find a boat insurance policy that covers all your risks without breaking the bank, look no further: Southpoint provides additional liability protection for your car, home and boat, such as additional insurance in case you are sued for a costly boating accident. If your boat damages someone else's property, such as another boat, or injures someone during an accident, your liability insurance pays for the damages. Over time, as your boat ages, your insurer will likely insist on a policy with real cash value and often give you substantial savings.

Since ships are subject to the same difficulties as cars and other motor vehicles, owners should ensure that they have marine insurance to protect themselves in the event of an accident or other mishap. Before you embark on your new boat on its first trip, protect yourself against economic damage with a Southpoint yacht or boat insurance policy. The amount of boat insurance you need depends on several factors, such as the age, engine size and value of your boat, lender requirements, marina requirements, state requirements and intended use. I live in an area where I can't use my boat in winter, but my lender requires that it be insured year-round.

While a homeowners insurance policy typically offers property coverage for a small boat, motor, and trailer, it excludes liability insurance. But even if your state doesn't require it, consider the implications of not having boat insurance. Many insurance companies sell boat insurance, such as Allstate, Nationwide, Progressive, State Farm, The Hartford and USAA.

Jerri Ament
Jerri Ament

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