The Most Common Types of Boat Damage   

Boat ownership carries financial exposure that many owners underestimate until something goes wrong. Baker Insurance Group Inc. can help you understand how your boat insurance policy may respond to unexpected perils on and off the water.

The Risks of Going Without Coverage

Boat damage can happen without warning. The resulting costs, including hull damage, engine failure, injury or property liability, may fall entirely on an uninsured owner. Storage and towing fees add to that burden, and skipping coverage to save on premiums may end up costing more in the long run.

Common Causes of Boat Damage

Boat insurance may cover various incidents, such as:

• Collision with another vessel or a submerged object
• Storm damage, including wind, hail and lightning strikes
• Theft of the boat or onboard equipment
• Fire or explosions on your boat caused by faulty wiring
• Sinking while docked
• Damage during transport on a trailer

Coverage options and requirements often vary by carrier. Reviewing your policy with your agent can help you understand what it includes, where gaps may exist and whether you may need additional coverage.

Agreed Value vs. Actual Cash Value

Boat policies commonly use one of two valuation methods. Agreed value locks in a fixed payout, so depreciation doesn’t reduce your claim. Actual cash value accounts for depreciation and may reduce your payout for an older vessel. For newer or higher-value boats, agreed value coverage may result in a better outcome after a loss.

Get Started

Contact Baker Insurance Group Inc. today for any questions on boat insurance. Our agents can discuss coverage options and help you secure a suitable policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.