Marine Insurance Basics for Recreational Boats

Core coverages

• Hull: physical damage to your boat (agreed value or ACV)
• Liability (P&L): bodily injury and property damage to others
• Medical payments, uninsured boater, wreck removal — read forms
• Personal effects / fishing gear / tender / trailer — often scheduled

Agreed value vs ACV

Agreed value pays the policy schedule on total loss (minus deductible). ACV depreciates. For financed boats, lenders usually insist on full coverage with loss-payee.

Where you boat matters

Navigation limits and lay-up periods are contractual. Bahamas trips, races, and chartering typically need endorsements. Snowbirds must schedule dual locations and transit.

Binding tips

Quote before you fall in love with a high-performance or very old boat. Complete NASBLA-approved education; it can help eligibility. Disclose prior claims and all operators.

FAQs

Does homeowners cover my boat? Usually only tiny boats, with tight limits. Assume no and ask your agent.
Are marina contracts strict? Many require specific liability minimums and additional insured language.
What deductible should I choose? Balance premium vs cash you can spare after a grounding or storm.