Boat Insurance: Basics for New Boat Owners

Buying a new recreational boat is an exciting time, and new owners are eager to spend that time on the water with friends and family. Whether the boat is for lazy weekends at the lake, fishing trips, or even water skiing, it will require insurance just like any other vehicle. Much like choosing insurance for your car, truck, van, or SUV, there are many considerations in the type of policy you want for your boat. Western Insurance Marketing in Diamond Bar, CA has experienced agents who would love to walk you through the process of choosing the right coverage to insure your boat and provide you with peace of mind.

Basic Types of Boat Insurance Coverage

Physical Damage

This type of boat insurance protects your vessel against common damage caused by sinking, storms, theft, collision, and fire. Policies will vary, but most will cover the boat’s motor, extra fuel tanks, batteries, and anchors against these risk factors. Your onboard safety equipment like floatation devices and fire extinguishers are also usually covered under basic physical damage. Your trailer may not be covered, so be sure to discuss this with your agent.

Replacement Cost or Actual Cash Value

An important point to cover with your Western Insurance Marketing Corporation agent is whether the boat’s replacement cost is insured or whether you will receive the cash value for the boat. A replacement policy will cover the cost of repairing the watercraft back to its original condition or replace the vessel with the same or similar model. A cash value policy will pay you the actual cash value of the current market repair or replacement but takes into account how much the value of the boat has depreciated since you bought it.  

Liability Coverage

New boat owners do not want to consider that they may cause bodily injury or property damage with their boat, but when considering insurance coverage, it must be discussed. Liability insurance helps protect you if your boat causes injury or damage through direct contact or even something like damage caused by creating large wakes. This type of insurance will help cover legal fees and the payment of settlement of any lawsuits that may ensue.

Reach out to our offices in Diamond Bar, CA to speak with an agent about getting a policy for your boat or watercraft.