If you are thinking about getting a boat, you need to make sure that you take all the associated costs into consideration. The costs of buying a boat include things like upkeep and insurance. You will need to make sure that you budget for those things. When you are thinking about getting your boat, you will also need to know what kinds of boat insurance there are out there. 

Types of Boat Insurance

You want to make sure that you get insurance specifically for your boat. Your homeowner's insurance may provide some coverage, but that is likely to be just the basics. You will need to have boat insurance. Boat insurance breaks down into two different types. 

Actual Value Insurance

This kind of insurance will generally pay you the replacement price of your boat. That amount will be based on an appraisal of your boat. Depreciation will also be considered. The value of your boat is going to go down the longer you have it because of depreciation, thus the amount that you will recover in the case of an accident. 

Agreed Value Insurance

With an agreed value insurance policy, you and your insurance company agree on the value of your boat. If something happens to your boat you will be able to recover that amount. If you get this kind of insurance, make sure that you have a new for old clause. This clause means that you will be able to get new parts for your boat covered, minus depreciation. 

Boating Insurance Coverage

Within those two basic kinds of boat insurance, there are categories for just about every kind of boat. You can talk to your insurance agent and tell them what kind of boat you have, and they will give you specifics for that kind of boat. Coverage for a bass boat is going to be much different to insurance for a charter fishing boat. Make sure your agent knows what kind of boat you have and what you are planning to do with it. 

The coverage for your boat is very similar to the coverage for your car. You can get collision, property damage, and comprehensive policies. They cover the same basic things that they would if you chose those options for your car. But there are also some specific things for your boat. That includes things like salvage coverage. This coverage will kick in if your boat capsizes, sinks, or is otherwise damaged enough that it could be considered salvage. At that point, you will need a salvage company to help you get your boat back. That can be really expensive and salvage insurance can help to defray that cost. 

You may love doing things out on the water and may be considering your own boat. If you are, make sure that you know all about the associated costs, like insurance. To get started contact an insurance company or agent to obtain a boat insurance quote.