A boat policy insures you and your boat against damages caused by fire, storms, lightening, theft, vandalism, capsizing, stranding, collision, sinking and explosion. It covers you from all the liabilities in the event of an accident. The amount of coverage you will receive depends upon the boat insurance policy you buy.

What does the policy cover?

Most of the boat insurance policies not only provide damage coverage to you and your boat but also cover physical damages to the equipments permanently attached to the boat. The equipments that are generally covered are:

* Anchors
* Sails
* Machineries
* Tools
* Life preservers
* Furnishings

The insurance policy provides boat liability coverage, medical payments coverage and uninsured boat insurance coverage.

• Boat liability coverage: The liability coverage provides protection if you are legally held responsible for damages to another boat or dock and for bodily injury or death to some other person apart from your family members, resulting from the ownership or negligent operation of the boat. This coverage may also include compensation liability for injury to the mechanics, cleaners, carpenters, etc. employed by you to work on your boat.
• Medical payments coverage: This insurance coverage provides protection for medical costs (including ambulance and hospitalization costs) to you and also your family members and other occupants of the boat injured by an accident while they were on your boat, boarding your boat or leaving it. The accident must arise out of maintenance or use of the boat.
• Uninsured boat owners coverage: This segment of the boat insurance policy provides coverage against injury caused to you by a hit-and-run boater or an uninsured boater who collides with your boat.

A good insurance policy will provide you with emergency services (including delivery of fuel and mechanical labor in case of breakdown on water, and towing to the nearest repair facility) and loss replacement coverage if your boat is new. In the event of total loss, the policy provides for replacement of the boat with a new one. A boat insurance company provides replacement coverage on an actual cash value or an agreed amount value basis. Actual cash value coverage pays for replacement costs as per the approximate market value of your vessel. When you and the insurance company have agreed on the value of your vessel to be paid to you in the event of a total loss, it is called agreed amount value replacement coverage.

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