Boat Insurance Policies

When you are on the waters, you can enjoy the time with no worries about your vessel, if you have the right boat insurance policy. Boat insurance policies get you peace of mind.


The boat insurance policies generally cover vessels of maximum 26 feet in length. Anything more than 26 feet would be covered by yacht policies. Boat insurance covers physical damage to your vessel due to some accident or covered hazards including fire, collision, windstorm, theft, vandalism or lightening. The boat, its auxiliary equipment, machinery, trailer, personal property and outboard motors are broadly covered under such a policy.

Generally, the basic boat insurance policy would cover liabilities for injury or accident. In order to cover the whole vessel you need to go for the basic policy and hull coverage. The boat insurance policies including hull coverage are mainly of two types: agreed value and actual value.

Actual Value

Actual value boat insurance policies pay the replacement cost of the covered vessel after deducting the depreciation at that time. If the boat is totally lost, then the market value of the boat is calculated and that amount is paid. For partial loss, the total repair cost minus a depreciation percentage is settled.

Agreed Value

In agreed amount boat insurance policies, you and the insurer agree upon a set amount at the time of insurance purchase. When there is a full loss, this amount is paid out. For a partial loss, the policies would replace the damaged items with new ones, without deducting for depreciation.


Coverage for physical damage is always subjected to deductible amounts. The vessel and its motor come under the same deductible, while the personal effects and trailer need additional deductibles. These deductibles can be flat amounts or calculated as percentage of the coverage amount.

Personal Effects

Good boat insurance policies cover the personal effects. These personal effects can be those items that are not used for the general operation of the vessel. Personal effects can be portable or cellular phones, portable TVs, radios, cameras and stereos.

Coverage Sections

  • The liability portion covers the liabilities for injuries to persons or damages to goods/assets caused by the boat.
  • The medical coverage portion covers reasonable hospital, medical and ambulance costs for a person injured while boarding, using or leaving the boat.
  • The ‘uninsured boat owners’ portion covers injuries caused to you/your boat by another boat with no insurance.
  • The towing section of the policy reimburses you for reasonable commercial towing and assistance costs, if your vessel breaks down on the waters.

Boat Insurance Related Topics