Insurance requirements vary depending on the type of boat according to Discover Boating. Several factors are taken into consideration, including the age and condition of the boat as well as the length and the value. Boat types are categorized as utility, performance, inboard, outboard, cruiser and saltwater fishing boat.
Also considered is where the boat will operate. Insurers want to know if the boat will be used in the ocean or in fresh water. There are two basic types of boat insurance explains Discover Boating. An agreed value policy is more expensive but covers the value of the boat when the insurance was purchased. A less expensive actual cash value policy factors in depreciation.