If you own a boat, boat insurance is an important part of keeping your investment protected.
While many people think about auto insurance first when it comes to protecting their vehicles, it's important to understand that boats are treated differently by insurers and government regulators. Boats are also often more expensive than cars, so you need to do some research before deciding on an insurer and policy.
What Factors to Consider When Buying Boat Insurance
Here are five factors that should go into finding the right type—and amount—of boat insurance based on where you live, how often you use your boat, and what it's worth.
#1 Value of the Boat
Be sure to give your insurance agent a detailed description of the boat you are insuring. This information will help them determine the value of your potential investment and provide you with an accurate quote for insurance coverage.
The most important thing when considering how much a boat is worth is to remember that its value is not always tied directly to its original purchase price. For example, boats often depreciate over time, so if yours has been sitting unused for many years, then its value may decrease substantially compared to when it was new.
#2 Location and Use of the Boat
The location and use of your boat should also be considered when purchasing insurance. If you keep your vessel in a marina, it's possible that the owner's association has an insurance policy that offers some type of coverage for boats within the marina. However, if your boat is at a private dock or at home, you'll need to purchase full coverage.
#3 Type of Boat
There are many different types of boats, from dinghies to cruisers to motorboats. The type of boat you have is also a contributing factor in determining your insurance rate. This is because each type of boat has its own level of risk for certain perils, such as theft and damage from fire or weather.
#4 Your Deductible 
Your deductibles is the amount of money you pay out of pocket before your insurance policy kicks in. They typically range from $100 to $1,000, but it's common for a percentage of that deductible to be included in your premium costs. Many boat owners choose to set their deductible at a high value because they want to minimize any out-of-pocket expenses—but doing so may result in higher premiums and fewer options when it comes time to file a claim.
#3 Type of Boat
There are many different types of boats, from dinghies to cruisers to motorboats. The type of boat you have is also a contributing factor in determining your insurance rate. This is because each type of boat has its own level of risk for certain perils, such as theft and damage from fire or weather.
#4 Your Deductible
Your deductibles is the amount of money you pay out of pocket before your insurance policy kicks in. They typically range from $100 to $1,000, but it's common for a percentage of that deductible to be included in your premium costs. Many boat owners choose to set their deductible at a high value because they want to minimize any out-of-pocket expenses—but doing so may result in higher premiums and fewer options when it comes time to file a claim.
#5 Types of Coverage
There are several types of boat insurance coverage that can be included in your policy. Be sure to have a full understanding of these coverages, or work with an experienced agent who can ensure you have the necessary coverage for your specific needs.
These are the most common types of boat insurance coverage:
Bodily Injury Liability Coverage - This type of coverage pays for bodily injury to other people who are injured while they are on your boat or in the water near your boat.
Property Damage Liability Coverage - This type of coverage pays for damage to property owned by others when they are injured while they are on your boat or in the water near your boat, including their boats and docks.
Medical Payments Coverage - If someone is injured while on your boat, this type of insurance will pay medical costs if you can't afford them.
Comprehensive Coverage/Collision Coverage - These two types of policies cover damage to your own vessel caused by colliding with another boat or object such as a dock, bridge column or pier railing (called "fixed objects"). They also cover theft from theft attempts that result in damaged vehicles but not total loss situations (called "theft losses").
What Boat Insurance Do I Need?
Boat insurance is a lot like car insurance: It’s something you can’t afford not to have. And with so many different types of coverage available, it can be tough to know which options are right for your needs.
Luckily, we’ve laid out the key considerations above so you don't have to stress about it too much when shopping around for a policy. The most important thing? Work with an experienced agent and take the time to understand what kind of policy will work best for both you and your vessel. To find the best policy for you, contact the Fiorentino Insurance Group today.