5 Things You Must Know About Boat Insurance

Boat insurance may sound like a luxury for most boaters, but this is not entirely the case. Getting boat insurance is as necessary as getting home insurance. This is because boating accidents are common, and getting repairs is very expensive.

In case you’re responsible for the accident, you will not only have to pay for your own boat repairs, but for the damage your boat has caused, including the medical expenses of the aggrieved party.  

Here are a few things that you must know about boat insurance:

Home Insurance doesn’t cover your boat

Many boaters may think that their home insurance will cover any damage that is sustained by their boat. However, that is not the case. The only scenario where home insurance will cover the boat insurance is when your boat gets damaged when it is parked in your home.  

What Boat Insurance Covers?

A standard boat insurance policy will cover the bodily injury of any person that is riding in your boat as well as the damage sustained by your boat.

In addition to that, just like auto insurance, boat insurance will cover the damage caused by your boat to the property of someone else, as well as the repairs to your own boat.

Types of Coverage

There are generally two types of coverage provided by insurance companies on boat insurance:

Agreed value

Market value

Agreed value is something that will be agreed upon at the time of purchasing the insurance and you will get the exact amount of money when your boat is destroyed.

In market value, you get the current market value of your boat when your boat is destroyed.

It is better to get agreed value for an old boat and market value for a new boat, as boats depreciated quickly.

Coverage Area

Boat insurance doesn’t mean that your boat is covered everywhere. The insurance company will specify areas where you can take your boat, and if your boat gets into an accident outside of that area, you will not get a claim.

The area generally depends on the size of your boat. The bigger your boat, the more area it will cover.

Your boat will also not be covered when it is out of water. When you are towing it with your car, your auto insurance will come into play. And when your boat is parked in your home your home insurance will apply.


Boat insurance doesn’t have to be expensive. There are several discounts you can avail.

You can avail discounts by taking boating classes and installing safety features on your boat. On the other hand, you can also apply for lay-ups in the periods in which you don’t take your boat out. However, if you take your boat out during a lay-up and it gets into an accident, you will not be entitled to make a claim.

If you are looking for boat insurance in Sarasota, FL, get in touch with Manatee Insurance Services. We are the leading insurance brokers in the area and provide comprehensive insurance packages for boat, auto, home and flood insurance.

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