Choosing the Perfect Boat Insurance Plan

What does boat insurance cover? 

Boat insurance may be able to cover everything from damages to your watercraft, vandalism, and liability-related charges. A critical question when it comes to boat insurance is not what it covers, but what coverage do you specifically need? 

Boat insurance property coverage

A policy that includes boat insurance will provide you with coverage whether the boat is stored on water, land, or being operated in the water. There are two main types of coverage: actual cash value coverage as well as agreed amount coverage.

Actual cash value coverage takes into account of depreciation when you need to pay for things such as repairs. 

Agreed amount coverage offers you financial compensation based on the agreed upon valuation of your boat. This is decided by both you and your insurance company when you are purchasing coverage. 

Uninsured watercraft coverage

If you have uninsured watercraft coverage, that means that you can still have financial assistance in case you are involved in a collision with another boater who is either uninsured or underinsured. Not all policies offer uninsured watercraft coverage, so you may want to ask about it. 

All risk insurance 

If a policy is called “all risk”, it still may not comprehensively cover every type of loss. “All risk” insurance means that if a risk has not been omitted or excluded in the policy’s terms, then it is likely able to be covered. 

Common coverage add-ons

These are types of coverage that are usually not included in the typical boat insurance policy. However, they are common add-ons that you might want to consider getting for your insurance. 

Specialized coverage 

If you own some specific type of navigational equipment or an extra prop that is kept on your watercraft, you might need specialized coverage for it. This also means that it is incredibly important to read the fine print of your insurance policy before you agree to pay for it, since it might purposefully exclude certain equipment that you assume is covered but is actually not protected. 

Consequential damage

Not all kinds of losses are from accidents. Rot, mold, and other kinds of damages may be covered if you choose a consequential damage add-on. If you own an older boat or are worried about maintenance issues and costs, it could be helpful to ensure that your policy includes coverage for the different types of consequential damage. 

Cruising extension 

If you plan on leaving your coverage perimeter, perhaps to travel outside of the United States, you might need to apply for an extension so that you have financial protection in more navigational waters. Approval is important, so it is always a good idea to apply as early as possible once you find out that you might be going on a trip to somewhere outside of your usual perimeters. 

Medical coverage 

If you get injured on a boat, you might be worried about medical costs, whether the victim is you and/or another party. 

You might be surprised to learn that a boat insurance policy can cover medical costs as well, despite not being health insurance.

In cases of injury sustained on the boat, your additional medical policy may offer adequate coverage to make sure you are financially protected from treatment costs. 

Liability protection 

Liability coverage is critical if you are operating a boat. If you are found liable, which essentially means that you are proven responsible for an accident due to negligence or malice, then the litigation costs could be devastating. 

Towing coverage

Sometimes, you might get stranded on the water and need towing assistance. This might happen if your fuel filter became clogged somehow or if your batteries fizzled out. In these cases, you will probably need the help of towing services. 

If your boat needs to be towed across the water for safety reasons, it can be quite expensive. A good towing policy add-on could save you a headache, since it means your policy can cover the necessary towing costs. 

Fishing gear insurance  

If you go fishing, you probably have expensive gear attached to your boat. However, sometimes fishing gear will get vandalized, stolen, or damaged. Some fishing gear and equipment may be costly to repair or replace, so make sure you have adequate fishing gear coverage. 

Watersports gear insurance  

Watersports, including jet-skiing, tubing, surfing, and more, come with expensive equipment. If you enjoy this hobby, you might want to add this specialized coverage to your boat insurance policy. 

In Florida, there is always the possibility of watersports equipment being damaged by hurricanes or storms. It may also be vulnerable to vandalism or theft. 

Faulty parts and repairs 

The more well-built your boat, the less likely it is to fall apart and need repairs. But even the best world-class boats might just have things going wrong with them. If there’s a fuel line spill, broken propeller, or another problematic faulty part, repair is probably necessary for the safe continued operation of the boat. 

Be aware of what faulty parts your policy covers so that you can repair your boat without worrying about the costs. 

Do you need luxury boat insurance?

Of course, a million dollar yacht won’t have the same cost of insurance as a budget, entry level Bayliner. This means that the insurance rate and kind of coverage required might be quite different. If you need additional coverage in case of a major financial loss, luxury yacht or sailboat insurance may be desirable for you. 

How is the boat insurance cost determined?

Many factors influence the rate of your boat insurance, including:

  • Deductibles you select for your boat insurance policy
  • Coverage limits of the policy 
  • Type and size of the boat you are insuring 
  • Boat storage location 
  • Boat operational territory 

Insurance deductible 

The deductible is essentially the amount that you have to pay in case of any expenses such as a boating collision before your insurance coverage kicks in. A high deductible means that the insurance premium will be lower than if you have a low deductible. 

A common way of approaching insurance deductibles is to choose a high deductible if you are worried about more “catastrophic” costs in case of a collision with injuries or total loss of your boat. Depending on your needs and financial statuses, you may have a different optimal deductible for your boat. 

Coverage limits

Insurance policies tend to have a coverage limit. A limit is the maximum insurance claim payout after a covered loss. This means that insurance companies will not pay the entirety of your expenses if they exceed the coverage limit. While typically, insurance limits are hard to exceed, it is still important to be aware of the limits so that you can adjust your policy based on your needs. 

Florida boat insurance discounts 

Once you know what policy and types of coverage you want, you’re probably worried about the insurance premium. In Florida, the annual boat insurance can usually range anything from $100 to $700. 

There are many factors influencing the exact cost of your boat insurance rate, such as boat type, boating history, coverage necessitated, and value of the boat. It’s important to be aware of what your policy covers and whether it’s enough or too much coverage. 

Fortunately, there are ways in which you can get insurance premium discounts! Whether that’s through a discount tip and trick or chatting with our agents at Worth Insurance, here are some of the ways you may be able to net a cheaper boat insurance rate in Florida. 

Safety discounts 

Just like if you’re a safe car driver, operating a boat safely means an insurance company might reward you with a safety discount if you ask for one. 

You may be able to get a sweet discount if you keep extra safety equipment on your boat or if you get additional certificates for courses on boat safety. Showing a boating history without any accidents may also help garner you a safety discount. 

Ask about ongoing discount offers 

Many boat insurance companies will offer incentives in the form of additional discounts. It is often a good idea to ask your insurance company whether there are other discounts the company offers. 

For example, a company may give you a discount if you are willing to pay the lump sum of a year of insurance coverage at the start instead of in monthly installments. 

Bundle discounts

If you own a boat, it is likely that you also own an automobile, a house or apartment, or even multiple types of watercraft. If you need insurance for more than just your boat, you may be able to take advantage of bundle discounts that insurance companies tend to offer.

Insurance companies love it when you purchase and activate multiple insurance policies with them. That is why they typically offer multi-policy or bundle discounts, which help promote customer loyalty and confidence. 

Make the most out of your boat warranty

If your boat encounters certain defects and needs to be repaired, you should check whether you have an active warranty for your boat. Usually, boat parts and boat engine defects show up within the warranty period of your model. 

It is a good idea to make the necessary repairs when issues arise, that way you may be able to avoid costly expenses following a collision caused by defective parts you were aware of. 

Check with an insurance advisor 

Insurance can be tricky to navigate. Our team of advisors at Worth Insurance can consult with you to help you find out what kind of insurance might be optimal for you and your family in Florida. 

Our experts are familiar with how to get cheap boat insurance that still offers adequate financial protection. You can get fast, meaningful insights into what kind of policy you might want to get for your boat. Make the most out of every penny you spend on insurance with Worth Insurance! 

Boat insurance and hurricanes

It’s no secret that Florida has extreme weather conditions at times—insurance companies are very well aware of the fact. Hurricane damages can wreak havoc on a Florida marina, resulting in millions of dollars of boat damages. 

A hurricane or severe storm can cause hazardous debris to fly around and destroy boats that are out in the water. 

If you can prove to your insurer that you have devised a reasonable Hurricane Plan to keep your boat safe from hurricane damage, then the insurance company may offer you additional discounts.

Get the best boat insurance for you

Owning a boat is both a financial and a sentimental investment. Adequate insurance coverage can go a long way in protecting you and your family from any expenses, such as collision-related damages, injuries, and other kinds of losses. 

Our experienced team at Worth Insurance can help you get affordable quotes for the type of insurance that is optimal for you. The process takes only a few minutes, and then you can get the lowest quotes from the top boat insurance providers!

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