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3 important things to consider before buying boat insurance

Purchasing a boat can come with a hefty price tag, so it makes sense to make sure your investment is protected. Much like auto insurance, boat insurance protects you from financial liability in the event of an accident, damages to your boat, or an injury caused by your boat.

When you’re ready to buy boat insurance, consider the following to help you make a sound choice.

1. How you’ll use your boat

While some boaters prefer to cruise along and use their watercraft for relaxing fishing trips, others like using their boat to pull water skiers and tubers for an adventurous day on the lake. Whatever you use your boat for, make sure your policy has adequate liability coverage. If you regularly tow your boat from home to the lake, be sure to ask your boat insurance broker about coverage that will protect you in the event of an accident on the road.

2. Choosing home insurance or a separate policy

Your home insurance policy may cover your boat; however, we typically recommend buying a separate policy to protect your watercraft. There are limitations on most home policies that won’t fully cover you in case of damage or personal injury. Keep in mind that whatever your policy doesn’t cover, you’ll need to pay out-of-pocket which could run you hundreds, even thousands of dollars.

Boat insurance is quite affordable, averaging $300-$500 per year. The low premium costs make the risk of having to pay thousands of dollars out-of-pocket not worth the worry and stress.

3. Opting for agreed value or actual cash value

When you buy boat insurance, you have a choice between agreed-value or actual cash value. Agreed value ensures you are paid the amount on your plan and that amount is secure, without depreciation. Actual cash value is the value of the boat at the time of the claim. Agreed-value policies may come at a higher premium cost, but you’ll be better compensated, regardless of the age of your boat.

How much is boat insurance?

This is a common question that boat insurance brokers receive and the answer depends on a number of factors. The following factors are used to determine the cost of insurance:

  • The age of the boat
  • The condition of the boat
  • How large the craft is
  • The value of the boat
  • If you live on the boat
  • How and where the boat is used
  • To help you reduce your premium cost, ask your insurance broker if you qualify for available discounts.

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