Boat and PWC Insurance
What does boat insurance cover?
Boat insurance policies often resemble auto insurance policies. Just like car insurance, policies vary between companies, but the main types of coverages are bodily injury/property damage liability coverage and physical damage coverage. Other optional coverages often include medical payments coverage and uninsured/underinsured boater coverage.
• Property Damage liability – can pay for expenses resulting from property damaged in an accident you cause, like replacing or repairing a boat, a dock or other structure, as well as defense costs.
• Bodily Injury liability – can pay for expenses related to injury to others in an accident you cause. These expenses could include medical bills, lost wages, and pain and suffering, plus defense costs.
• Uninsured/underinsured boaters coverage – It can pay for things like bodily injury, lost wages, and pain and suffering for you, your passengers and your family members in an accident caused by a boater with no insurance or insufficient insurance. With the economy still souring, it's likely that people are dropping boat insurance as well, so this coverage is essential.
• Medical Payments coverage – can pay for a smaller amount of medical or funeral expenses for you, your passengers and others on your policy. Water sports coverage extends this protection to waterskiing and similar activities outside of the boat.
• Physical Damage coverage – protects your boat itself – and its towing trailer, if you want. The options for this coverage, from highest cost to lowest, are total replacement, agreed value, and actual cash value.
-Total replacement will replace your boat with a new boat of the same type and is usually only available for boats less than two years old.
-Agreed value will pay the amount listed on your policy, but is lower than the replacement cost of the boat.
-Actual cash value pays you the market value of the boat.
These options all have deductibles.