The Different Types of Boat Insurance Policies

If you are a new boat owner in Marietta, GA, you may be tempted to add a rider to your homeowner’s policy to provide insurance coverage for your recent purchase. While such coverage is adequate for some vessels, for others, it is not, as the rider may not cover specific marine hazards. LG Insurance Group can help you determine what coverage you need to safeguard your new boat.

Boat or Yacht Insurance?

The size of your watercraft will determine which type you buy. Boat insurance is generally for vessels 26 feet and smaller. Recreational items like jet skis and other types of watercraft also fall into this category. Yacht insurance is for vessels 27 feet and larger, even if you don’t own a multi-deck watercraft. Yacht insurance usually provides broader and more specialized coverage than boat insurance, as larger vessels face more hazards and unique exposures.

Actual Cash vs. Agreed Value

Boat insurance policies are similar to those for autos in that you’ll have liability, collision, and comprehensive coverages. Yet one of the most essential parts of your policy involves how you want to insure your boat in case of damage. Actual cash and agreed-upon value are the two most common ways to provide reimbursement if a claim occurs. For agreed-upon value, you and your insurance company determine an amount for your boat if a total loss occurs. This amount will remain constant for the life of the policy. Actual cash value policies cost less upfront and can provide substantial savings, especially as the vessel ages. The insurer will pay up to your boat’s actual cash value when declared a partial or total loss.

LG Insurance Group, serving Marietta, GA, can help you determine the best policy and add-on coverages to fit your needs.