Did you know that boat insurance is one of the earliest known forms of insurance? Ancient sailors knew firsthand about the risks of a life at sea and sought to insure their boats against hurricanes and other unpredictable weather and waters. And it still applies today.
Boat insurance policies can vary widely in what they do and do not cover based on a number of considerations, including the type of boat, the waters it will traffic, and how many months of the year the boat will be used.
Physical damage
This coverage insures your boat against damage and loss caused by common risks, such as sinking, fire, storms, theft and collision. The property covered can vary, but the policy will usually cover the hull and other components, such as:
- Motors
- Extra fuel tanks, batteries, etc.
- Anchors
- Onboard safety equipment, such as flotation devices and fire extinguishers
A boat trailer may or may not be covered, depending on the policy. Talk with your agent to determine if your boat insurance policy covers your trailer.
When choosing your policy, be sure to ask whether you will be insured for the boat's replacement cost or its actual cash value. A replacement cost policy will reimburse you the cost of repairing the boat to its original condition or replacing the boat with the same or a similar model. A policy based on actual cash value will reimburse you for the current market value of the repair or replacement (the original price minus depreciation). Some insurance policies may include agreed value loss settlement for total loss situations.
State Farm® Insurance Agent
Rebecca Stutts Hovater
501 S Montgomery Ave., Suite C, Sheffield
256-383-1250
email: Rebecca@RebeccaHovater.com
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