Boat insurance is not required in a lot of cases, but it’s important to have if you plan on financially safeguarding your vessel from the unknown. In this guide, you’ll learn the ins and outs of boat insurance, and how it can help you with potential costly boating mishaps.
Boat insurance is designed to help financially cover your boat in the event of damages or a loss. Most boats that are powered by a motor can be covered by a boat insurance policy. Smaller watercraft such as canoes, kayaks, or PWCs (personal watercraft). These types of watercraft are often eligible to be covered under a home insurance policy.
As you can likely imagine, boat insurance is ideal if you own a watercraft. However, in Arkansas and Utah, it is a requirement for almost any boat powered by a motor. Even if you live in a state where boat insurance is not required by law, it’s never a bad idea to carry it.
When it comes to boat insurance, you have much more control over how much you pay than you would with, say, auto insurance. Coverage amount, type, and deductible are all variables that are left up to you. In the event that something happens to your boat, your insurance could potentially cover it depending on the policy you choose.
There are two primary boat insurance types: actual cash value and agreed value. Actual cash value assesses value based on what your vessel is worth at the time of a claim, whereas agreed value assesses value based on its worth at the time of policy creation. Actual cash value policies are generally more affordable than agreed value policies.
There are plenty of benefits to be enjoyed from boat insurance. The three most common are:
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