Boat insurance standards are not uniform. Boat owners must verify the policy coverage prior to purchasing insurance for a boat. Misinformed buyers may receive an inadequate insurance policy if they are not properly covered.

Boat insurance companies offer affordable rates to consumers based upon the insurance company and the type of watercraft requiring insurance. Knowledgeable insurance sales people can devise an insurance policy to cover all aspects of the boating experience. Both the vessel and the passengers should be covered. Clients with commercial boats will require special insurance for a boat to cover the business and the passengers. Personal effects and fishing equipment may also be covered.

Boaters may also want to obtain boat insurance with rental reimbursement and roadside assistance. Boat insurance should include coverage for medical expenses. Boat insurance should cover bodily injury payments and damaged property payments. Boaters insurance should also cover any costs for defending claims against the insured party if sued.

Recommended Types of Insurance for a Boat
Actual Cash Value. If there is a total loss of due to an accident, insurance adjusters will use reference materials such as BUC Used Boat Guide, NADA Book and ABOS Marine Blue Book to determine the market value at the time of the loss. The value will be based upon the condition and age of the boat at the time of the accident.

Some people do not prefer this type of policy because they may not be able to replace their boat with the amount gained from the accident. A catastrophic loss, for instance, means the cost of the losses exceed the value of insurance on the boat. This occurrence is not desirable by boat owners.

Agreed Value. An Agreed Value policy will require the consensus of both the owner and insurance underwriter to determine the value of the boat at the time of the accident. Many yacht owners choose an Agreed Value policy because they would prefer to have some input on the final decision of the insurance payout.

How to Obtain a Boat Insurance Quote and Coverage
Most people look online to obtain a boat insurance quote or insurance for a boat. Reputable insurance companies typically have the AM Best Rating. This rating is provided by the Insurance Institute and describes the company’s level of customer service, ability to handle claims and the liquidity of the company’s assets. Check for this rating prior to obtaining boat insurance or a boat insurance quote.

Also, determine the deductible on the boat insurance. A high deductible usually means a low monthly premium, and a low deductible means a high monthly deductible. Comprehensive boating insurance should cover the boat from fire, sinking, thefts, storms, capsizing, collision, stranding and explosion. The insurance should also cover equipment attached to the boat including anchors, tools, oars, seat cushions, canopies, life preservers, extra fuel tanks, dinghies and electric trolling motors.

Comprehensive insurance for a boat may also cover reasonable repairs to protect property from additional damage. Emergency service coverage will pay insured parties for reasonable costs incurred during a boating emergency. Reasonable expenses will be paid to remove wreck remains if the boat is damaged during an insured accident. This coverage is necessary and required by law. Ensure this coverage is included in the boat insurance quote.

Conclusion
Since no real standards for boating insurance exist, clients should know what is required to be properly insured. Research and compare each boat insurance quote online prior to purchasing boat insurance. Boat insurance is a sound investment if the proper policy is obtained.