Boat insurance coverage is variable and policies can protect you from different types of losses. There are certain types of coverage to consider when you are looking for watercraft insurance for your boat.

All Risk

An all risk policy is fairly comprehensive, covering for any loss unless it is listed as a specific exclusion on the policy. Exclusions are usually things such as normal wear and tear, damage caused by animals or a design defect or dents.

Liability

It is very wise to ensure you have liability coverage, which most recreational marine insurance companies call protection and indemnity. If you are boating and cause damage to another vessel, this will provide protection for you by covering potential legal fees, wreck removal or salvaging costs and even environmental charges if your boat damage pollutes the water.

Recreational boaters will also want to confirm their insurance for boat liability will protect them in the event a guest on the boat is injured or killed. Other concerns include physical damage to your craft and items permanently attached to the vessel such as anchors.

Theft and More

Policies may or may not extend coverage against other potential problems. Do not hesitate to ask about the fine print and exclusions as well as other options for coverage to ensure coverage protects against theft or break-ins, vandals and natural disasters such as fire or floodwaters. It is better to find out before you need to make a claim whether the insurance policy guards against capsizing, storms and other potential hazards.

In the Event of a Total Loss

Boat owners have the choice of insuring for Agreed Value (sometimes called Stated Value), which is basically replacement cost insurance. If your boat was damaged so extensively it was a total loss, this option would let you replace your boat with another of the same kind and quality. If you opt for Actual Cash Value (ACV) coverage the boat was a write-off you would only receive the amount for which the vessel is valued at the time. This would mean far less than replacement cost because of depreciation.

Additional Coverage Options

Most marine policies will include coverage for other costs that may arise from a loss. You need to really examine the fine print because the amount covered and deductibles vary. It is not unusual for boating insurance to cover things such as medical costs for occupants of the boat, personal effects, accidental death benefit uninsured boater liability. There are also plans designed to protect owners of specialized craft such as yachts or water ski boats.