Good boat insurance policies protect your boat in exactly the same way your auto insurance protects your car. You need to have all three of the items below covered in your policy. Without these items, your boat insurance may not measure up to things that happen.
Item #1: Accident Coverage
Your insurance covers accidents that happen on the water or during transit. Your boat could be damaged by flying debris on the road when you are driving to the lake, but your boat could be involved in a crash with another boat. The policy allows you to submit a claim for damage to your boat, and the policy pays for damage to another boat when you are at fault in the accident.
Item #2: Loss Insurance
Your boat could be a total loss just like your car. If your boat sinks on the open water or is damaged beyond repair, your insurance policy will value the boat for replacement. You do not get the full replacement value for the boat, but you get a check for the assigned market value the insurance adjuster decided on.
Item #3: Medical Claims and Personal Property
Advanced insurance policies include provisions to pay for medical bills and personal property loss. Your boat may house personal property that is valuable to you. If you lose this property with the boat, the policy will pay the replacement value of the item. Some policies set a total value for items on your boat.
Also, you may incur medical expenses when your boat sinks or crashes. Your policy will cover your medical bills in some circumstances. You must review the policy to make sure you understand what medical expenses are covered.
Your insurance policy for your boat is designed to protect your boat and your family. When you purchase a quality policy, you get all three items above for your protection.