Physical Damage Coverage for Boat Insurance?

Physical Damage Coverage for Boat Insurance

When insuring your boat, you are probably most concerned with being able to use your policy to repair or replace it if it ever gets damaged or destroyed. While your boat insurance can provide the appropriate benefits, they are not guaranteed to cover 100% of potential damage. However, with the help of your insurance agent, you can customize your plan in ways that will ensure that you receive maximum assistance for any potential vessel damage.

Let’s take a closer look at the physical damage insurance offered by boat insurance, and what you can do to make sure yours is tailored to your advantage.

What is physical damage insurance?

Boats cost a lot of money to buy and maintain, and it’s fairly easy to understand exactly how much of an investment they represent. Still, you know that by owning a boat, you will always face the risk of the vessel sustaining damage.

Of course, your boat could sustain damage in a collision (either with another vessel or with a rock or stationary object), but it might also be damaged in a fire or bad weather, be stolen or vandalized, and even get damaged in a vehicle accident while being transported on its trailer. In all these cases, the costs of repairs could be significant, but it’s your boat’s physical damage insurance that can help you pay. Therefore, even though an accident occurred, it won’t be a huge financial blow to you, personally.

How much will physical damage insurance pay me?

Depending on the structure of your boat insurance, your physical damage insurance will likely have a few conditions attached.

Physical damage insurance usually covers the vessel against numerous hazards, both collision-related and others. Unlike auto insurance, it doesn’t separate benefits into collision & comprehensive coverage.
A deductible will apply to most claims, and your plan will not pay for physical damage that is worth less than your deductible value. For instance, if your vessel sustains $500 worth of damage, but you have a $1,000 deductible, then you will not receive any compensation.

If your boat is totaled in a wreck, then your insurer will generally compensate you based on the vessel’s cash value, which is the value of the boat at the time of the loss. Or, it might pay an agreed value (which might represent the boat’s like-new value) that you and your insurer determine at the time you enroll in coverage.
Normal wear & tear, intentional damage and damage caused during the commission of a criminal act will not have coverage.

Work with your insurance agent to determine the precise amount of physical damage insurance your boat needs. While your needs are likely to be very diverse, your agent will know how to help you tailor your plan to provide optimized protection.

Physical Damage Coverage for Boat Insurance?

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