Purchasing your first boat can be exciting. But, after purchasing a boat, there is one important thing you should do. You should insure your boat. While you are not required to carry boat insurance to legally operate a boat in PA, you may be required to carry boat insurance if your boat is financed. Additionally, many marinas require you to carry boat insurance to store your boat.
Here at H. Dean Allison Insurance, serving the greater Altoona, PA area, we can help you with your boat insurance needs, including learning about the different types of insurance available.
Types of Boat Insurance
Agreed Value
When it comes to boat insurance, there are two primary types of insurance. This is an agreed value policy or an actual cash value policy. An agreed-value policy means that you and the insurance company agree on the current value of the boat, and if there is a loss, you are paid out based on this agreed-upon value. This is typically only an option for newer boats.
Actual Cash Value
An actual cash value policy takes into account depreciation and the age of your boat. This is how much the insurer values your boat. Most boat policies are actual cash value policies.
Add-Ons
In addition to an agreed value or actual cash value policy, you can have add-ons to your policy. This includes things such as specialized coverage, consequential damage, towing, and cruising extension coverage. An insurance agent can help you to understand what each of these terms means and if they may be something you should consider adding to your policy.
Reach Out To Us
While you may not legally be required to carry boat insurance to operate a boat in PA, it is smart to protect your investment in the boat and to protect your finances in case you cause an accident with your boat on the waterways. Here at H. Dean Allison Insurance, serving the greater Altoona, PA region, we would love to help you find the right insurance policy for your needs. Reach out to us today to get started.
