Boat Insurance

Are you ready to get out on the water with peace of mind? If you’re looking for boat insurance, the Costlow Insurance Group is here to assist. Located in Rowlett, TX, we serve boaters and sailors throughout Dallas/Fort Worth, TX. 

Call 972-463-8043 to learn more about boat insurance today!

Boat Insurance Information

Most insurance companies provide limited coverage for property damage on small boats such as canoes, small sailboats, and small power boats. Under a homeowners or renter’s insurance policy, you might get coverage on boats with less than 25 mph horsepower.

Coverage is usually about $1,000 or 10 percent of the home’s property value, and generally includes the boat, motor, and trailer combined.

Liability coverage is typically not included–but it can be added as an endorsement to a homeowners policy. Check with your insurance representative to find out if your boat is covered and what the limits are.

What Is Boat Insurance?

Boat insurance provides coverage for larger and faster boats that aren’t always protected under a homeowners or renter’s policy. Boats that typically require separate boat insurance policies include:

• Fishing Boats with larger engines
• Speedboats
• Yachts
• Personal watercraft such as; jet skis and wave runners

The size, type, and value of the craft, and the water in which you use it, can affect how much you’ll pay for insurance coverage.

For physical loss or damage, coverage includes the hull, fittings, machinery, and furnishings. It also covers any permanently attached equipment as part of either an actual cash value policy or on an agreed amount value basis.

These policies also provide broader liability protection than a homeowners policy. But there are distinct differences between the two types of policies.

Two Types of Boat Insurance

Actual Cash Value

Actual Cash Value policies pay for replacement costs off less depreciation at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the vessel’s approximate market value. Partial losses are settled by taking the total cost of the repair less a percentage for depreciation.

Agreed Amount Value

Agreed Amount Value basis policies mean that you and your insurer have agreed on the value of your vessel, and in the event of a total loss you will be paid that amount. These policies also replace old items in the event of a partial loss, without any deduction for depreciation.

Boat Insurance Covers:

• Bodily injury—for injuries caused to another person
• Property damage—for damage caused to someone else’s property
• Guest passenger liability—for any legal expenses incurred by someone using the boat with the owner’s permission
• Medical payments—for injuries to the boat owner and other passengers
• Theft

Most companies offer liability limits that start at $15,000 and can be increased to $300,000. Typical policies include deductibles of $250 for property damage, $500 for theft and $1000 for medical payments. Higher limits may be available.

Additional coverage can be purchased for trailers and other accessories. Boat owners may also consider purchasing an umbrella liability policy which will provide additional protection for their boat, home and car.

Boaters should inquire about special equipment kept on the boat, such as fishing gear, to make sure it is covered and verify that towing coverage is included in the policy. You can also check out more boat insurance tips!

Boat Insurance Discounts

Boat owners should also inquire about discounts for the following:

• • Diesel powered craft, which are less hazardous than gasoline powered boats as they are less likely to explode
  • Coast Guard approved fire extinguishers
  • Ship-to-shore radios
  • Two years of claims-free experience
  • Multi-policies with the same insurer, such as a car, home or umbrella policy
• You should also inquire about boating safety education courses. Some courses are offered by:

• • • The Coast Guard Auxiliary 
    • U.S. Power Squadrons 
    • The American Red Cross 

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