Most boat insurance companies in Phoenix provide limited coverage for property damage for small boats such as canoes and small sail boats or small power boats with less than 25 mile per hour horsepower under a homeowners or renters insurance policy. Coverage is usually about $1,000 or 10 percent of the home’s property value and generally includes the boat, motor and trailer combined. Liability Boat Insurance coverage is typically not included, but it can be added as an endorsement to a homeowner’s policy. Check with your boat insurance company in find out if your boat is covered and what the limits are.
Larger and faster boats such as yachts and personal watercraft require a separate boat insurance policy. Jet skis and wave runners may also require a separate boat insurance policy. The size, type and value of the watercraft and the type of water in which you use it in, will factor into how much you will pay for boat insurance coverage.
For physical loss or damage, boat insurance coverage includes the hull, machinery, fittings, furnishings and permanently attached equipment as part of either an actual cash value boat insurance policy or on an agreed amount value basis. These boat insurance policies also provide broader liability protection than a homeowner’s insurance policy. But there are distinct differences between the two types of boat insurance policies.
Actual Cash Value boat insurance policies pay for boat replacement costs less depreciation at the time of the loss. In the event of a total loss, boat pricing guides and other resources are used to determine the vessels approximate market value. Partial boat insurance losses are settled by taking the total cost of the repair less a percentage for depreciation.
Agreed Amount Value basis policies mean that you and your boat insurance company have agreed on the value of your vessel and in the event of a total loss you will be paid that amount. An agreed Amount Value boat insurance policy also replaces the old items for new in the event of a partial loss without any deduction for depreciation.
Boat insurance also covers:
Bodily injury: for injuries caused to another person
Property damage: for damage caused to someone else's property
Guest passenger liability: for any legal expenses incurred by someone using the boat with the owners permission
Medical payments: for injuries to the boat owner and their other passengers