What Types of Boat Insurance are Available and What Do They Cover?

The most common types of coverage in a boat insurance policy include liability, collision and comprehensive coverage, with many more protections available. There are two main types of boat insurance: the “agreed value” and the “actual cash value”. The way depreciation is managed is what differentiates them. Collision coverage can protect you from a variety of accidents, whether you're at fault or not, and whether you've crashed into another boat, hit a rock or a submerged object, or hit someone's property.

Liability insurance is not mandatory, but it helps cover the cost of removing the boat or any waste from the water after an accident or if the boat sinks. Home insurance policies may provide some protection for a smaller boat while you're on your property, but it won't offer you the coverage you need on the water. Boat insurance generally only pays for losses and injuries that occur within designated geographical limits. You can extend your coverage to Alaska, Bahamas, Mexico and the Caribbean with BoatUS.

It is advisable to select a policy that will continue to cover your boat while it is stored on land or while transporting it overland in a trailer. Foremost offers more than five insurance packages adapted to the type of boat, age or level of coverage, which can simplify choosing the features of the policy you need. The company also includes roadside assistance at no additional cost if you also take out insurance for boat trailers. Liability coverage also helps pay for your legal defense if you are sued for an event that could be covered by your boat insurance policy.

You must insure your boat for the quantity it would cost to replace it with another of the same type and quality. Over time, as your boat ages, your insurer will likely insist on a policy with real cash value and often give you substantial savings. Homeowners insurance can cover your boat as long as the boat meets the insurer's size and speed restrictions. If you damage your boat or cause injury or damage to another person, you file a claim with your insurer asking them to pay for the damages.

Jerri Ament
Jerri Ament

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