With boats being about the oldest form of transport still being used, it is not surprising when you realise that boat insurance has been available in varying forms for thousands of years. A boat, just like all vehicles is liable for an insurance policy, under the Marine Insurance Act. Boat insurance policies, just like vehicle insurance come with an excess except the excess for a boat is usually quite a substantial sum which is done in order to discourage small claims which is often the case with cars. So the major difference between boat insurance and car insurance is the amount of coverage a policy provides.

As soon as you become a boat owner in America, most states will require you to have a boat insurance policy in force. Houseboats are a strange case because although they are not generally moved that are required to have an insurance policy which covers pleasure boats like cabin cruisers, sailboats and ski boats etc. A speedboat for instance, is capable of high speeds requires a much different type of insurance than a small fishing vessel would because of the potential liability for the insurance company that comes with a speedboat compared to a fishing boat.

Almost all boat insurance policies will cover the cost of replacing the vessel, engine and the boat trailer but Actual Cash Value boat insurance plans only pay for replacement less any vessel depreciation from the point of loss. In the event of total damage, second-hand boat pricing directions and additional funds are used to decide the estimated market rate of the boat. It is possible to take out Optional Insurance which will include additional extras such as emergency services to the boat, cover for reasonable repairs, removal, the motor and trailer. Where there has only been limited damage to the vessel, partial damage repairs include the restoration less any items that can be deducted.

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To guarantee the value of the boat should it happen to be an insurance write off then an Agreed Value boat insurance policy can be taken out where the boat owner and insurance company come to an agreement about how much the vessel is worth and compensate to this value. This type of policy also takes into account that old items have depreciated and have less value but are still replaced with new ones. However, Agreed Value boat insurances policies require a cash value to be given on many onboard items such as sails, outboard motors, dinghies for instance and these will need to be agreed before the policy commences.

Essentially boat insurance covers two distinct areas; that of legal liability and that of damage or loss of property. The liability section covers the owner against claims by a third party if any damage is caused to that person or his property by the insured vessel. At an early stage it is worth trying to employ the services of an insurance agent who has experience and a reputation for locating the best boat insurance and settlements for his clients. A final piece of advice surrounds the liability section of the boat insurance and the need to ensure you are covered should legal charges be brought against you relating to a matter that is protected under the boat insurance.

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