Boat Insurance FAQ's

Does my boat require insurance by law?
This policy varies by state; inquire with your local boating law administrator. Regardless of requirement, it is highly recommended that you protect your watercraft and its passengers with a boating insurance policy.

Do I need a license to operate a boat?
This policy differs from state to state, so check with your local boating law administrator. Many states that do not require a boating license to operate a boat, and may require a boating safety course in its place. There are thousands of recreational boating accidents every year, boating safety courses are highly recommended to operators of watercraft.

What does a standard boat insurance policy cover?
A standard boat insurance policy usually protects in instances of damage to the boat or boating equipment resulting from collision, theft or vandalism, lightning or fire. Passengers are typically covered in boat insurance policies as well. Coverage may differ if the boat is on land. It is important to talk to your insurance agent to fully understand what your boating insurance policy does/can cover.

How much coverage do I need under my boat insurance policy?
The amount of coverage necessary per vessel is determined on an individual basis, no two boating insurance policies are alike. Talk to your insurance agent to assess your needs and what coverage options are available to you.

What is a deductible?
A deductible in terms of an insurance policy is a specific dollar amount that the insured is required to pay before the insurance company will pay out on an insurance claim.

What is actual cash value (ACV)?
Actual cash value (ACV) can be interpreted differently in different courts, but generally speaking, actual cash value is the cost to replace your property with new property of similar or like value.

What is replacement cost value (RCV)?
Replacement cost value (RCV) is described in detail within your boating insurance policy, but simply put, replacement cost value is the cost to replace your damaged property and its contents to a comparable state as before the claim.

What is agreed value?
At the point of insurance policy purchase, the insurance agent and the policyholder agree upon a set value for the watercraft.

What do I do in case of emergency on my boat?
If you are concerned for your safety on the waters, the Coast guard consummates as the Search and Rescue (SAR) coordinator for any maritime emergencies. If you are in sincere distress, call “mayday, mayday, mayday” over your radio. If the situation is not one of distress and you simply need assistance on the water, please indicate “coast guard” over your radio to channel 16 VHF/FM.

Am I covered by my boat insurance policy in international waters?
While this coverage is included in many standard boating insurance policies, it may be an additional coverage option. Talk to your insurance agent to determine exact coverage options available to you.

What information do I need to file a claim with my insurance company?
All claims are assessed on an individual basis and some cases may require more information than others. Generally, the following is required when filing a boat claim with your insurance company:

- Your contact information
- Full names and contact information of any other party(ies) involved
- The type of loss with which you are reporting a claim
- The time and date and the occurred incident
- A detailed description of the claim, including loss or injury

What do I do if I am in an accident in my boat?
In the case of a serious accident, contact the police or coast guard immediately. If the accident is not serious in nature, proceed to the next step; gather as much evidence as possible. Take pictures of all incurred damage and/or injuries. Any witness reports are supplemental to your insurance claim.

Boat Insurance FAQ's

Bind:
When the quotation offered by the insurance company is accepted by the policyholder and a date to commence coverage is agreed upon.

Binder:
Temporary coverage or proof of insurance that is immediately instated until a complete policy can be constructed. Typically expires after 30 days.

Catastrophic Loss:
When the loss that occurred surmounts the actual insured value of the boat.

Cruising Area:
Within your boat insurance policy, there is a particular geographic area defined for use of your boat. If the boat operates outside of the defined cruising area, a cruising area extension would be necessary to continue coverage.

Cruising Areas Extension:
A cruising area extension is necessary to ensure insurance when watercraft operates outside of the specified cruising area. Typically, prior notification and approval is needed to obtain a cruising area extension. Fees may apply based on length of extension.

Named Insured:
T he full name of the person(s) name on the insurance policy.

Partial Loss:
Any insurance claim that is less than that of a total loss.

Proof of Insurance:
Proper and official documentation that the vessel is in fact insured and that the insurance policy is currently in effect.

Salvage:
A successful rescue of an insured vessel from any threatening situation.

Total Loss:
This is a complete loss, there is no recovery of the watercraft. This could be an instance that the vessel was stolen and not recovered, damaged and not salvaged and more.