Understanding the 3 Types of Boat Insurance

Prior to putting your boat out on the water, it makes sense to review your boat insurance policy to ensure that you have appropriate protection for mishaps that may happen with the increased risks of physical outdoor activities.

Boat insurance provides coverage if an individual is injured while on your craft, in addition to property damage to your vessel and bodily injury inflicted on third parties. Moreover, boat insurance can include options to reduce coverage during the off-season while your boat is in winter storage.

Boat insurance comes in three main types of policies:

• Agreed amount value: You and your insurer agree to the value of the vessel at the time you acquire the policy. In the event of total loss, this is the amount you can recover.

• Actual cash value:  The insurer can pay out the current value of the vessel (including deprecation) in the case of total loss.

• Replacement cost coverage: The insurer can pay to replace the craft with one that is similar, or reimburse you for the original cost of the boat.

Many insurance companies that provide boat insurance also offer prudent bundling of multiple policies that may save you a considerable amount of money. In addition, review your homeowner’s policy, which may cover physical damage to small crafts up to $1,500 or less (depending on policy details). However, liability coverage is most likely very limited, and a large vessel will be excluded from homeowner’s insurance for both liability and property coverage.

Want the best protection for your boat? Talk to your independent insurance agent about getting the right coverage so you can enjoy the summer sunshine with peace of mind.

Enjoy summertime with less worry. Call Five County Insurance at 239-939-1400 for more information on Florida boat insurance.