Texas Boat Insurance Guide

When it comes to boat insurance, it’s preferable to separate your boat insurance from your homeowner’s policy.

Boat Insurance Shopping

Asking questions is a great way to start. If you have friends, relatives or neighbors that have boats, don’t be shy about asking what is their boat insurance company and how their claims have been handled. The way an insurer has helped with claims in the past is a good pointer of the quality of service you can expect in the future.

Speaking with your local insurance agency can help you answer all your questions about boat insurance.

 Is Boat Insurance for you?

Lawfully, only two states require some type of boat insurance coverage, Arkansas and Utah (and for one of these states, only boats with engines that produce more than 50 horsepower). 

Nearly any vessel can be insured. You want to consider the facts below to make sure the boat policy you purchase meets your needs:

• Age of the Boat
• Value
• Length
• Condition (Does it meet current US Coast Guard Standards at the time it was manufactured?)
• Speed/Horsepower
• Primary residence (for instance, if the boat is used as a primary residence)
• Type (Inboard, bassboat, saltwater fishing boat, performance boat, Outboard, utility, cruiser)
• Is it homemade? (Boats without a serial number are complex to insure)
• Houseboats with no motor
• Ownership (example, more than 2 owners)
• Where it will function (Ocean, lakes, bays, rivers)

Types of Boat Insurance

There are two main types of boat insurance “agreed value” and “actual cash value.” How depreciation is handled is what makes them different.

Agreed Value policy covers the boat based on its value when the policy was written. While it can be more expensive up front, there is no depreciation for a total loss of the boat (some partial losses may be depreciated).

Actual Cash Value policies are less expensive up front, but factor in depreciation. Meaning, the policy will only pay up to the actual cash value of the boat at the time it is affirmed a total or partial loss. As a boat ages your insurer will likely enforce on an actual cash value policy since it often provides a considerable saving.

Kinds of Boat Insurance Policies

Marine insurance covers a wide range of watercrafts. You may be amazed to discover what can be insured. Marine insurance policies include:

• Boat
• Personal Watercraft (PWC)
• Yacht – usually, vessels 26′ and smaller are called “boats,” and “yachts” are 27′ and larger. Yacht coverage is inclined to be broader and more specialized because larger boats travel farther and have more particular exposures.
• Sailboat
• Dinghy
• Boat & PWC Rental – Although this is commonly not required, rental insurance will help cover any damage to the vessel, as well as the operator and passengers.
• Boat Clubs – covers all members of club while operating a boat.
• Professional (ProAngler, Fishing Guides & Charters) – These policies are very personalized and can cover items like travel to a tournament, equipment and more.