Do I Need Boating Insurance?


Hello, I’m Keith, the boating guy. What kind of insurance will you need for your boat? You definitely will need insurance. First of all, let me tell you, boat insurance varies widely across the board. The first thing you should do is talk to all your friends and other boaters you may know to find out who they have for insurance, what kind of insurance they have, and how they’ve had to deal with any filing of claims. Any good insurer out there will tailor coverage to fit your needs.

First of all, you should buy a separate policy for your boat than to add your boat to your home owners policy or your automobile policy. The two main choices a boater will face are between agreed upon values and actual values.

Agreed upon value policies covers the boat at whatever value you and your insurer agree upon. For example, if you buy a $20,000 boat and you agree upon that if 5 years down the road something happens to your boat and it gets a loss, you get reimbursed that $20,000 to buy you a new boat.

The actual cash value policy costs less up front, however, for claims they factor in depreciation and only pay the actual cash value of the boat at the time of its loss. So, if you buy a $20,000 boat and five years later something happens to that boat, you may only get $10,000 or $15,000 dollars for your boat, depending on whatever the actual declared value is at the time of the loss.

So, determine which type of policy is right for you: actual value or the agreed upon value. Talk to your friends and neighbors and other boaters to find out who is a good company to use. Hopefully you’ll never have to use your boat insurance company, and hopefully I’ll see you out in the water. So good luck to you.

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