Understanding a Boat and Watercraft Policy
If you own or are thinking about purchasing a boat in the state of Texas, you will need to have boat or watercraft insurance. Some homeowners' insurance will cover your boat up to a certain amount, but it’s still good to have separate insurance. Our agents at Wester Insurance of Texas can help you create a policy specific to your needs.
If your boat is covered under your homeowner's insurance, like some of your other valuables, it doesn’t provide liability coverage. So, having a separate policy for your boat is your best option. Boat insurance will cover the repair or replacement of your boat in case it's damaged, provide medical payments, or pay for damage or injury to others.
There are three different policies you can get in Texas:
- Replacement — covers the cost to repair or replace your boat
- Actual Cash Value — covers the cost to repair or replace your boat minus the depreciation value. This means that the price you originally paid for the boat, is not going to be the value of the boat years later. That is the depreciation value. The value of the boat when you damaged it will be what is reimbursed, not the price you originally paid for the boat.
- Agreed Amount Value — a set value is set in your policy for repairs or replacement of your boat.
Another factor to think about is how much use you will get on your boat. If you only are going to be using your boat for the summer, you can add a layup provision that will suspend the coverage of your boat during the months you are not using it.
Our agents are ready to assist you today to create a policy geared towards your needs. Stop into our Texas office or call to speak to an agent today.