Research insurance carriers at Ambest.com, or use state insurance regulatory agencies to find and select a reputable boat insurance company, according to Discover Boating. While many insurance companies offer boat insurance, it can be beneficial to search out companies that specialize in boat insurance and other marine-related services, reports NBOA Marine Insurance.
Marine insurance policies are available for many types of watercraft, such as boats, sailboats, yachts and dinghies, and the policy should match the specific kind of watercraft, states Discover Boating. Boat insurance comes in two types: agreed value and actual cash value. Agreed value policies often cost more at the time of purchase, but the coverage is for the boat's value at the policy start date. Actual cash value policies factor in the boat's depreciation as it ages.
Boat insurance protects the consumer from damages that auto and home insurance don't cover, states McClain Insurance Services. Homeowner's insurance doesn't fully cover parked boats, and coverage for theft or damages may fail to match the costs. Boat insurance also provides liability and medical payment coverage to anyone who is aboard a boat at the time of injury, and many marinas require proof of liability insurance to rent out a spot for boat parking.