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June 7, 2024

Thinking about getting a boat?

Thinking about getting a boat?

If you are, then we have what you need to keep it protected. Mid State can connect you with the right coverage for your needs this summer.

Find out what goes into boat insurance below.

First, policy rates and coverage depend on a number of factors. 

Boat insurance can be added to a homeowners’ policy or can be covered on a separate policy. Discoverboating.com recommends taking out a separate policy due to its comprehensive coverage [1]. Coverages in a separate policy usually consist of medical payments, damage to the vessel, theft, and broader liability protection [2].


The rate of each of those policies depend on the length, type, and use of the watercraft, where it will operate, and several other factors.


Similarly, the extent to which you desire to cover your vessel will have an impact on the cost of insurance. Basic coverage with a homeowners policy would likely be the cheapest option, while a standalone policy with multiple endorsement will be much higher.

Second, the main coverage sections on a boat insurance policy are physical damage and liability.

Physical damage coverage often provides “all risk” coverage which includes “weather-related perils, theft or vandalism, collisions with docks, submerged or floating objects or other boats [3].” Liability coverage could cover “the removal or disposal of the wreck of your boat, clean-up expenses resulting from oil pollution or contamination” and injuries to workers or passengers on board [3]. In addition, policies offer supplemental coverages like towing or consequential loss.

Third, the value paid out in the event of a loss depends on your boat.

The two most common types of insurance for a loss are agreed value insurance and actual cash value insurance. The best one for you will depend on what kind of boat you have. Agreed value insurance will pay out the value of a loss for whatever amount the insured and insurer decided beforehand. The advantage to this type of coverage is there is no depreciation subtracted from the value of the boat if it is a total loss. Actual cash value insurance “costs less up front,” but it takes into account the depreciation of a loss [1].

Finally, even with insurance, it is important to take safety precautions while out on the water.

an orange life preserver on a boat in the ocean

Even with insurance, there are still important steps to take to remain safe on the water. According to the International Insurance Institute, it is important to remain alert, stay aware of what is in the water, and ensure that your boat is well equipped with safety gear. Additionally, the institute recommends checking the weather ahead of time [2].

For your boat insurance needs, give us a call at 931-388-8332.


For more tips on how to stay safe in the water, give our recent blog Stay Safe While Swimming a read.



[1] “Boat Insurance Guide.” https://www.discoverboating.com/ownership/insurance. May 15, 2024.

[2] “Boat Insurance and Safety” https://www.iii.org/article/boat-insurance-and-safety#:~:text=Typical%20boat%20insurance%20policies%20cover,for%20trailers%20and%20boat%20accessories. May 15,2024.

[3] “Understanding Boat Insurance.” https://www.chubb.com/us-en/individuals-families/resources/understanding-boat-insurance.html. May 15, 2024.

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