How Much Boat Insurance Do I Need?

Boats are the stars of the show in summer! They are flashy and fun. However, when involved in an accident, boat repairs can be freaking expensive, and that’s why you need boat insurance. But any boat insurance isn’t insurance. Why do we say this? If you are underinsured, it can be frustrating when filing a claim to find that you are insufficiently covered.

At Old Pueblo Insurance, we usually advise our Oro Valley, AZ clients to have a second look at their boat insurance to ensure they have the right options and the correct amount. But how do you know you have sufficient coverage? Don’t sweat it out. Below is a guide to help you determine the amount of boat insurance adequate for you.

How much liability coverage do I need?

Liability coverage is one of the most critical coverages – it covers you when accused of bodily injury and property damage. Liability coverage also protects you when you cause damages and injuries as your boat docks.

The amount of liability coverage depends on the size of your boat. For small boats, we advise a minimum of $100,000. However, for powerboats, liability coverage can go as high as $500,000. But if you want liability coverage of $1M plus, consider umbrella insurance.

How much collision or comprehensive coverage do I need?

Your collision or comprehensive coverage pays for damages or replacing your boat when it’s stolen or destroyed beyond repair. So, you need coverage that can replace your boat without incurring significant out-of-pocket expenses.

That said, consider the replacement value or agreed value instead of the actual cash value that knocks off the depreciation factor from the pay-out amount.

Boat insurance in Oro Valley, AZ 

Ready to get started with boat insurance? Please get in touch with Old Pueblo Insurance for an affordable quote.