Florida Boat Insurance Deductibles
Every policy has a physical damage deductible, which may be a percentage of your boat’s value or a certain dollar value, such as $500. There may also be a separate deductible depending the type of boat you have. Sailboat insurance, for example, often has a separate deductible for the boat’s mast.
As a boat owner in Florida, you’ll also want to note if your boat insurance policy contains a hurricane or named-storm deductible. Due to Florida’s hurricane and tropical storm risk, insurers often include a second named-storm deductible, which can be as high as 10% of your boat’s value.
Get A Boat Insurance Policy To Protect Your Investment
Boat insurance helps you enjoy peace of mind as you navigate your boat or personal watercraft . So if you travel across lakes, rivers, or ocean waters of the United States we can help. Whether you’re looking for a new boat insurance policy or just to save money on an existing policy, we’re can help you get started with a free boat insurance quote.
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We all want cheap boat insurance rates, but customer service is what matters. Protect your investment with boat insurance you can count on and get your free online boat insurance quote today.
Types Of Boat Insurance
There are two basic types of boat insuranceagreed value and actual cash value. How depreciation is handled is what sets them apart.
An “agreed value” policy covers the boat based on its value when the policy was written. While it can cost more up front, there is no depreciation for a total loss of the boat .
“Actual cash value” policies cost less up front, but factor in depreciation. In other word, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss. Eventually, as your boat ages, your insurer will likely insist on an actual cash value policyand if often gives a substantial savings.
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What Boat Insurance Will Pay For
You can typically buy liability insurance which pays for damage your boat does to others in amounts from $15,000 to $300,000, according to the Insurance Information Institute. Heres what else you can expect from a policy:
|What boat insurance typically covers||What it doesnt cover|
Check, too, about additional coverage for trailers and accessories, for towing and for damage caused by an uninsured boater.
You can buy two types of damage coverage for a boat:
- Actual cash value. This pays the value of your boat at the time of the damage. If your boat is destroyed, your insurance company determines its market value.
Some important things to know about boating and your policy:
How Does Boat Insurance Work
Boat insurance works similarly to car insurance, but it covers the financial loss of large boats instead of automobiles. You generally pay a set monthly fee for coverage on your boat, and in exchange can place claims against financial loss or damage for things related to your boat. When the claim is received by the insurance provider, they will investigate to determine the fault of any accident, what the damage costs are, and how much should be covered. Once that is complete, the insurance carrier will send you a check for the amount of coverage you are entitled to for whatever claim you submitted.
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The Owners Credit History/insurance Score
The insurance company will do a soft credit history check.
This means that their inquiry will not show up on your credit, but they will know your history.
They will use this information to determine how much your premiums will be on your policy.
Any history you have with other insurance companies will also come into play.
Where Do I Get Boat Insurance
The easiest way to get boat insurance is to work with an independent auto or homeowners insurance agent.
Our network of Endorsed Local Providers will compare policies from multiple insurers to find the best one for your boat. And our agents will go a step further: Theyll teach you how to actually understand your boat insurance policy so you can be confident youre getting the insurance you needwithout costly extras.
About the author
Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners.
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Boat Insurance Cost Factors
Many factors are used to set the cost of a policy, and they vary among insurers. Here are some items to consider:
- Cruising Area: Where you boat.
- Boating Safety Education: If you have been formally trained or certified.
- Good Driving Records: Both boating and driving.
- Liability Limits: The higher the limit the higher the cost.
- Deductible: The higher the deductible the lower the premium.
- Towing insurance requirements for offshore fishing .
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Do You Need Boat Insurance
In order to determine if you need boat insurance, you need to assess your needs and keep the costs in mind. Typical boat insurance policies can cost 1-2% of the boats value over the course of a year. These payments are typically split up into monthly payments.
If your livelihood depends on your boat, such as a boat charter business, youre a fisherman, or offer boat tours then you should definitely get boat insurance. Its also recommended for recreational boat users because boat repairs add up and you dont want the headache and out-of-pocket costs, not to mention liability, if youre in an accident or your boat is damaged in a storm.
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Important Information To Gather
When searching for quotes, make sure you have the following information: hull size, the purpose of the boat, type of engine and when it was built. Getting the best deal is, of course, important, but you dont want to do it at the expense of comprehensive coverage. A boat is an expensive investment and if something happens to it, you are going to need help to recoup your losses.
Starting with free online quotes will allow you to see all your options clearly, but be careful. Sometimes these cheaper policies dont have all the coverage options that you need. Make sure you comb very carefully through any policy before signing it.
Boats most commonly covered under Florida boat insurance are sailboats and power boats that are usually anywhere from about 17 feet to close to 27 feet in length. Your agent will take into consideration factors like size and where the boat will stay docked. As well what her traveling grounds will most likely be. Is she a riverboat or will she be heading out to the open ocean? The age of the boat and the experience of the owner are also significant factors as well.
Details About Yacht Insurance To Be Aware Of
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The Size Of The Engine
A boats engine size will also dictate how much insurance is needed to cover the boat. Larger engines cost more to maintain, repair, and replace.
If your boat has multiple engines, this will incur more insurance costs.
When a boat with multiple engines is destroyed, all of the engines need to be replaced. Insurance companies will take this into account when they write up their policy.
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Property Damage Or Physical Damage
This is where damage to your yacht comes in.
Say you hit the dock when pulling into port like above only this time your yacht is severely damaged as well and needs to be repaired for thousands of dollars.
Having great insurance coverage on your yacht will protect you in this situation and will most likely take care of any damages you have minus your deductible on damages, which can be as high as $1,000.
You always have to pay the amount of your deductible on boatowners insurance, regardless of fault or if it was an accident so keep that in mind.
For example, if damages to your yacht are $30,000 and you have a $1,000 deductible, your insurance company will only pay you $29,000. This is typically called Hull coverage.
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What Boat Insurance Limits Should I Purchase
When you buy boat insurance, the amount of coverage for your boat, motor and equipment is usually determined by your bill of sale. Most insurance companies use your purchase price as the maximum limit of coverage for sudden and accidental physical damage to your boat. Its important to review the policy exclusions as they will vary from one insurance company to another.
Additionally, youll need to determine the liability limit needed to protect you and your assets should you become legally liable for bodily injury or property damage to others. We dont suggest limits lower than $300,000, and many boat owners will desire higher limits of protection. It is relatively inexpensive to purchase limits of $500,000 or greater. Its important to understand that your personal assets may be at risk should your policy limit be exhausted.
If you were in an accident with another boat that caused serious damage, one of the following outcomes would likely occur, depending on the insurance coverage you and the other boat owner have and the laws in your state.
The following scenario assumes both boat owners have physical damage coverage and liability coverage:
- If you were at fault and found legally liable, your boat liability insurance would cover the damage to the other boat and 3rd party bodily injury claims up to the limits of the policy.
- Damage to your own boat would fall under your hull/physical damage limit subject to your deductible.
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Does Boat Insurance Cover Lower Unit
Does Boat Insurance Cover Lower Units? We offer protection for damage to the lower unit of your boat as long as the damage was caused by a covered event, such as colliding with another object. Keep in mind, normal wear and tear isnt covered, so make sure youre properly maintaining your boat each year.
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How Should I Store My Boat
Indoor storage is always best, but its also the most expensive boat storage option. It helps protect your watercraft against theft, vandalism and storms. Keeping everything in a temperature-controlled environment is better for the boat mechanics, as well.
Dry, racked storage is an option, but you may have limited access to your boat over winter.
If you store your boat outdoors, make sure to cover and shrink-wrap it.
Best For Affordability: Allstate
- No. of Policy Types: 3+
- Coverage Limit: Varies
Allstate is an insurance powerhouse that offers affordable boat insurance, multiple discounts, and additional boating resources on its website.
Need to speak to agent for policy details
Doesnt specialize in boat insurance
May not get personal attention of a smaller company
Allstate is one of the biggest personal insurers in the United States, consistently drawing high financial strength and customer service ratings from a variety of rating institutions, including A+ from AM Best. Allstate advertises its boat insurance as being affordable for a variety of boat types and coverage options, with some policies available for as low as a $25 monthly premium. The company offers a variety of payment options to fit your financial situation, including Allstate’s Easy Pay Plan where you can save 5% by having your boat insurance premium automatically deducted from your checking account. Or, if you opt to pay in full, you can save up to 10% on your policy premium. If you already have other policies through Allstate, it makes sense to check into their boat insurance coverage since you can save up to 20% on your policy premium by combining it with a home policy. Allstate also offers a 10% discount on boat insurance to all home owners.
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Factors That Go Into What Boat Insurance Costs
Is Sailboat Insurance Mandatory
Many people wonder if they’re legally required to insure their sailboat. After all, most states require auto insurance, so it follows that boats also require it. However, in most places, you don’t need insurance to own or operate a sailboat. That said, purchasing sailboat insurance is still the responsible thing to do.
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What Does Boat Insurance Typically Cover
Boat insurance coverage will depend on what type of boat you have, what insurance provider you use, and what coverage youre willing to pay for. General boat insurance typically covers physical damage to your boat, as long as none of the restrictions of the policy were violated, and liability coverage for damage to other property caused by you while operating your boat. You can add additional coverage types, such as medical payment for injuries you sustain while on the boat.
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Factors That May Impact Boat Insurance Costs
Boat insurance costs will vary based on many factors. Insurance companies use their own expertise to determine which factors they use and how they are weighted.
These factors may include but are not limited to:
The type of boat being insured.
The value of the boat being insured.
The intended use of the boat.
The location of the boat.
The age of the boat.
The size of the boat.
The size of the engine on the boat.
How often the boat is used.
The owners years of boating experience.
The owners credit history
The owners boating safety education
The type of policy being purchased.
Lets dive into each of these.
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How Much Does Boat Insurance Cost
On average, boat insurance costs a few hundred dollars, though it can run over $1,000 per year, depending on the type of boat and your personal profile. The type of boat, its length, and the expected use of the boat will largely dictate your boat insurance rates. Whether you have a speed boat, a small fishing boat or a yacht will make a big difference in what you pay.
Here are some factors that can affect your boat insurance costs:
- Use of the boat
- Gender, age and credit score
- Record of past boat insurance claims
- Boat specs
- Location of residents
If you are in the market for a new boat, let us provide you with a quote. We can factor in the cost of your coverage, so you can determine which boat you can afford. Or looking to make the switch to a new insurance provider let us give you a competitive quote.