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Boat insurance basics: What's covered

Learn about boat owners insurance and what the coverage means to you.

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. Still, there are a few basic kinds of coverage you can expect to receive, as well as some potential discounts for safe boaters.

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 permanent components, such as:

  • Motors
  • Extra fuel tanks, batteries, etc.
  • Anchors, and
  • Onboard safety equipment, such as flotation devices and fire extinguishers

A boat trailer may or may not be covered, depending on the policy.

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).

Liability coverage

This coverage applies if your boat causes injury to others or damage to other boats, docks or structures. Keep in mind that the injury or damage can be due to direct contact with your vessel or situations caused by your vessel, such as large wakes. Good liability coverage may provide protection against lawsuits, including the payment of settlements and legal fees.

Other coverage

Your insurer may offer additional kinds of coverage to go with your basic boat insurance. For example, State Farm® also provides medical payments coverage for injuries to the insured or occupants with their boat insurance policies. If you have other needs, ask your insurance agent what coverage is available.

Discounts

The best way to lower your boat insurance premiums is to become a safer boater. For example, many insurers offer discounts to boaters who have completed an approved boating safety course.

This document contains only a general description of coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements, and may vary by state. For further information, please see a State Farm® agent.

The information in this article was obtained from various sources not associated with State Farm®. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. These suggestions are not a complete list of every loss control measure. The information is not intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. Nor is it intended to effect coverage under our policy. State Farm makes no guarantees of results from use of this information.


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