Most homeowners insurance policies will cover damage to your boat, but only for a limited dollar amount. These policies don’t provide liability coverage. You will need a separate boat policy to cover a more expensive boat, provide for medical payments, or pay for damage or injuries to others..
Types of boat polices
There are three kinds of boat polices:
- Replacement cost: Pays to repair or replace your boat.
- Actual cash value: Pays to repair or replace your boat minus depreciation. For example, a new boat in 2010 might cost $40,000, but today it’s worth $25,000. An actual cash value policy would pay up to $25,000 to repair or replace this boat.
- Agreed amount value: Pays to repair or replace your boat up to a set value in your policy.
Understand your policy
- A layup provision suspends coverage during the months when the boat is not in use.
- There may be limits on your policy for ocean use. Talk to your agent to make sure your coverage fits your needs.
- Most policies have restrictions on underage drivers.
Many insurance companies that sell homeowners insurance can also sell you a policy for your boat. Be sure to ask your agent about options. There are also insurance companies that specialize in boat policies.