Boating Tips: Do Different Boat Types Require Different Coverage?

Jake Hill, the director of boat insurance at Newcoast, sheds light on this topic. According to him, the answer isn't always black and white. While some differences in coverage may arise depending on the type of boat, the core of a good boat insurance policy remains consistent.

For the majority of boats, an agreed-value policy is the gold standard. This type of policy covers the full value of the boat as stated on the declarations page, without factoring in depreciation in the event of a total loss. Essentially, it ensures that you'll receive the same amount you paid for the boat, regardless of its current market value.

Unlike car insurance, where depreciation kicks in the moment you drive off the lot, boat insurance operates differently. While boats do depreciate over time, the agreed value nature of the policy ensures that your coverage remains intact, as long as you renew it annually.

However, as boats vary in size and usage, there are instances where additional coverage may be necessary. Larger yachts, for example, may require crew coverage if there are paid crew members onboard. This coverage kicks in when money exchanges hands for services rendered, ensuring protection for both the crew and the vessel owner.

Furthermore, if your boat is equipped with a trailer, it's essential to consider coverage for the trailer itself. While the boat may be the primary focus, neglecting to insure the trailer could leave you vulnerable in the event of damage or theft.

In essence, while there may be nuances in coverage requirements based on the type of boat, the overarching principle remains the same: protect your investment with a comprehensive insurance policy tailored to your specific needs.

So, whether you're cruising on a sleek yacht or navigating the waters in a modest vessel, ensuring adequate insurance coverage is key to enjoying peace of mind on the water. And remember, when it comes to insurance, knowledge is your strongest anchor. We'll see you out there. 

Check out more of our MarineMax Boating Tips videos and see what you can learn from Captain Keith!

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