Boat insurance coverage

Boat insurance is available in two types, each with different parameters and different premium costs.

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• Actual Cash Value policies pay for replacement costs less depreciation at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the vessel’s approximate market value. Partial losses are settled by taking the total cost of the repair less a percentage for depreciation.

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• Agreed Amount Value policies are based on a valuation of your vessel that you and your insurer have agreed upon; in event of a total loss you will be paid the "agreed amount." Agreed Amount Value policies will also replace old items with new ones in the event of a partial loss, without any deduction for depreciation.

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Here are some of the common and optional boat coverages. Make sure you understand what exactly your policy will pay for and what the limits are.

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• Physical loss or damage to the actual boat, including the hull, machinery, fittings, furnishings and permanently attached equipment. Physical damage exclusions might include normal wear and tear, damage from insects, mold, animals (such as sharks), zebra mussels, defective machinery or machinery damage.

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• Theft of the boat.

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• Bodily injury to persons other than the boat owner or his or her family.

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• Damage caused to someone else’s property.

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• Guest passenger liability—that is, any legal expenses incurred by someone using the boat with the owner’s permission.

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• Medical payments for injuries to the boat owner and other passengers.

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• Trailer or boat accessories.

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• Loss or theft of belongings may or may not be covered. Your homeowners policy may provide some coverage and boaters should specifically inquire about special equipment kept on the boat, such as fishing gear, to make sure it is covered.

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• Towing in the event of an accident.