“With agreed value, the insured and insurer agree on the value of the boat upfront.
If something happens to the boat, you’re going to get paid up to the agreed value,” says Jawitz.
Now that you know the basics of boat insurance, let’s dig for some savings.
If you’re looking to purchase a boat and you’re in need of finance, there are a range of boat loans available for you to consider. A boat loan can be a secured personal loan that is designed to specifically finance a boat, a more general secured loan that allows boats to be used as a guarantee or an unsecured personal loan with no collateral.
Like home insurance, a boat policy covers you for liability if someone is injured on your craft and gives you the choice between replacement cost or cash value in a total loss.“A yacht policy will not pay for loss of life, bodily injury or property damage that occurs when the insured property is being transported on land,” says Mc Christian.Your homeowners insurance may provide limited coverage if the boat is damaged while parked on your property, but it may not stretch to cover stolen contents or vandalism. For larger craft, we have 22 territories that are defined by geographical points.“Your boat has nothing to do with your home, any more than your car can be covered under your homeowners insurance,” she says. Your boat, like your car, can go anywhere, so it requires a separate policy.” That said, you may save money by bundling your boat policy with your home or auto insurance.“There’s often a cross-sell discount,” says Chantal Cyr, vice president of product management for Travelers.
Unlike home and auto, a boat policy may allow you to “lay up” or suspend coverage for specified periods when you’re not using the boat. The moment you drive it off the lot, it starts depreciating,” says Cyr.