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  • Writer's pictureMelcher & Prescott Insurance

Boat Insurance Basics

Updated: Jul 1, 2020

Features of a Boat Insurance Policy

Watercraft insurance is similar to auto insurance in that it covers injuries to people and damage to the hull of the boat as well as equipment (motor, fish locator, trailer). The policy will also include liability insurance and may include coverage for a boat stored in a marina.

Finding the Right Coverage at the Best Cost

As an independent agency, we can compare boat insurance quotes from a number of national, regional, and local insurance companies. We’ve worked with these companies for many years and can explain the advantages and disadvantages of seemingly similar policies. If you purchase watercraft insurance from the same company as your other personal insurance (home, auto, or umbrella) you may qualify for a multi-policy discount. Our goal is to help you find a solution that covers your investment and liability at a reasonable cost.

Filing an Insurance Claim after Damage to a Boat

After a boat has suffered damage, one of the most difficult things for boat owners to understand is how an insurance company will value their loss. There are several methods insurance companies use:

  • Actual cash value (ACV): This is the market value of the boat, determined through guidebooks and sales listings of similar boats.

  • Agreed value (AV): In this instance, the insurance company specifies the value of the boat in its insurance policy. If the boat owner suffers a total loss, that is the amount the insurance company will pay, regardless of actual cash value or replacement cost.

  • Replacement cost value (RCV): When you purchase a new boat, you may be able to insure it for the full replacement value. Usually, there are time limits to this type of policy and as the boat ages, the policy reverts to an ACV or AV policy.

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