Even with the Hull Coverage endorsement (an optional add-on coverage to a homeowners policy offered by some companies) boat owners can only receive up to $7,500 for covered losses (in most states). The policy settles on an actual cash value basis only, often this is just not enough to repair your boat.You may need the full range of protection offered by boat insurance.
No boat too large or too small

• What types of boats qualify?
• Physical Damage coverage
• Agreed Value
• New for Old
• Actual cash value
• What's not covered
• Deductibles
• Boat liability
• Additional coverages
• Optional, low-cost coverages
• Inspection surveys
• Premium discounts

Get A Quote!
If at any time you have a question, need help or would like to see how much it would cost to insure your boat with Leonard Insurance, feel free to get a quote.

What types of boats qualify?
Most boat insurance policies are designed to cover boats from 16' to 25' 11" in overall length. Boats eligible for this insurance must be valued at $3,000 or higher and include outboard powered boats, inboard powered boats, sailboats (with or without power) and outdrive powered boats. Non-powered boats (such as canoes, rowboats, and pedal boats) are also eligible but only for inland water use.

If the size of your vessel is 26 feet or greater, it's generally considered a yacht, and therefore qualifies for yacht coverage. Yacht Insurance.

Physical Damage coverage
This important coverage pays to repair your boat if it's accidentally damaged or destroyed by a covered peril (such as fire, theft, windstorm, lightning or vandalism). Physical Damage coverage is very broad, with a few exclusions such as wear and tear, dishonest, illegal, intentional or fraudulent acts.

When you purchase boat insurance, one of your primary objectives is to protect your investment. Boat insurance can provide coverage for your:

• boat (including machinery)
• outboard motors
• auxiliary equipment
• dinghy (if under 16 feet and under 25 h.p.)
• boat trailer
• personal property kept aboard your boat.

What's more, you're usually covered for 12 months navigation anywhere within the 48 contiguous United States and Canada. You're also covered while your boat is in transit over land anywhere within the 48 contiguous United States and Canada.

Agreed Value (used for a Total Loss)
Boats under 15 years old are typically insured on an agreed value basis. This means the company will pay you the full amount for which your boat is insured in the event of a total loss. The agreed value is the amount that is shown on the policy and there is no deduction for depreciation.

Like cars, a boat's market value decreases over time. For this reason, the most you are allowed to insure your boat for is its fair market value. In most cases, insurance companies re-evaluate the market value of the boat every three years. Therefore, the agreed value listed on your policy will more closely reflect the current market value of your boat as it ages.

New for Old (used for a partial loss)
In the event of a partial loss, where there is less serious damage, property claims are handled in the following way: damaged property is repaired or replaced with no deduction for depreciation. In other words, "new" equipment replaces "old" damaged goods. Your policy should tell you how your insurer will settle claims for repairs or payment.

Actual cash value (used for boats over 15 years old)
Actual cash value means you will be paid the market value cost of your boat minus depreciation. Once your boat is over 15 years old, most boat policies revert to settling losses on an actual cash value basis. Also, some policies only offer actual cash value for certain damaged property such as sails, protective covers, batteries, outboard motors, lower drive units or outdrives, dinghies and trailers (regardless of the age of the boat).

What's not covered

• Non-conventional watercraft like: hydrocycles, jet skis, kit boats, ski boats, etc.
• High-performance boats with advertised or design speed in excess of 50 MPH.
• Auxiliary equipment such as:
  • Outboard motors NOT listed in your policy
  • Moorings, cradles, boat lifts or similar equipment
  • Fishing tackle and scuba gear (however, most policies do offer protection for this equipment as a low-cost, optional coverage)
  • Personal effects. This includes items not intended for the normal operation of your boat, such as portable TVs, cellular or portable phones, stereos, radios and cameras. For example, tools stored and used only in your boat may qualify as covered auxiliary equipment, whereas the same tools left in your car are considered to be personal effects.

Deductibles
A deductible is the amount of risk that you are willing to assume in case of a loss. The higher your deductible, the lower your insurance premium. Boat deductibles are usually determined as a percentage of your coverage and can range from 1% to 10%, depending on the type and speed of the boat. For example, if your deductible is 1% of $20,000 of coverage, you would pay the first $200 of the loss. When selecting the deductible on your policy, consider how much financial loss you are willing to assume. Also consider how much premium you could save by choosing a higher deductible amount. A lower deductible of $100 may be available for special equipment such as boat trailers, personal effects and dinghies.

Boat Liability
This important coverage protects you if you are legally responsible for damages to property or injury to someone other than yourself or a family member. Boat liability coverage protects you in the event you are sued as a result of hitting another boat, or if someone is hurt onboard your vessel because of your negligence. This coverage is usually offered in increments of $100,000 up to $1 million.

Additional coverages
The following additional coverages may be offered as part of your basic boat policy:

• Uninsured Boat Coverage: pays for injuries caused by an accident that you are entitled to recover from the owner or operator of an uninsured boat. This also applies in situations involving an unidentified "hit-and-run" boat.
• Medical Payments: covers reasonable medical, ambulance and hospital costs should someone be injured while in or upon boarding or leaving your boat.
• Commercial Towing and Assistance: You are reimbursed for the reasonable costs incurred when you break down at sea and need a commercial tow to port.
• Agreed Value on Outdrives (lower limits): provides replacement of lower drive units (without deduction for depreciation) if damaged or destroyed by a covered peril.

Optional, low-cost coverages
The following separate coverages can complete your protection:

• Optional Fishing Equipment: fishing tackle and equipment are not covered in the basic boat policy. You may want to specifically cover this property if you have some expensive rods, reels or tackle.
• Increase the limits offered for personal property, uninsured boater coverage and commercial towing.

Premium Discounts
Some companies demonstrate their commitment to safe boating by offering a premium discount for policies where all the operators have successfully completed a Power Squadron or Coast Guard Auxiliary basic or advanced seamanship course. Copies of certificates are required. Newer boats also benefit from lower premium rates. Leonard Insurance will assist you to find the best value possible.