If you’re planning on buying a water vessel, consider the cost of boat insurance when determining your budget. Naturally, your premiums will depend on a variety of factors, so it’s wise to discuss your situation with an agent to get a reasonable estimate. In the meantime, the guide below explains what this coverage offers.

What Are the Different Options Available?

There are two primary kinds of boat insurance: agreed value and actual cash value. An agreed value policy will cover the cost of the vessel when the policy was established. An actual cash value policy, on the other hand, factors in depreciation. In other words, it only reimburses the policyholder for the value of the boat at the time of the covered loss. 

What Does Boat Insurance Cover?

boat insuranceYou can purchase boat insurance for a broad range of watercraft, including dinghies, sailboats, personal watercraft, and yachts. Much like homeowners insurance and auto policies, though, it has limitations when it comes to covered losses. For example, it’s unlikely to cover wear and tear, animal damage, or design defects.

It can, however, pay for damage caused by foul weather, collisions, vandalism, and theft. And depending on the terms of the policy, your insurer may pay for towing or wreckage cleanup.

How Are Premiums Calculated?

Insurers might consider a dozen or more factors when calculating a fair premium for boat insurance. These often include the type, size, and age of the boat, as well as your cruising location, driving and boating records, the extent of your safety training, and the size of the deductible.

Thankfully, you have control over many of these factors, so you can adjust them as needed if you want more affordable coverage. For example, you could opt for a smaller vessel or complete a boating safety education course before purchasing coverage. 


For reliable boat insurance, turn to Texas Brand Insurance in Hubbard. A locally owned and operated agency, they’re proud to serve the state of Texas Backed by more than 35 years of experience, they help clients find the policies they need with the terms they want. To request a free consultation, call (254) 576-1180. We are open 6 days a week.  Learn more about their products on their website.