Depending on circumstances, your boat is not always covered by your boat insurance. For example, if the boat is damaged, while it is stored at home, it would be covered by your homeowners' insurance policy. If it is damaged, while being towed behind your vehicle, it would be covered by your auto insurance policy. However, the boat insurance providers in California and Arizona generally offer some, or all of the following types of coverage.
- Boating liability insurance: This insurance covers your financial responsibilities if you are at fault for a boating accident that results in another person's injuries or property damage.
- Medical payments insurance: This insurance covers any medical expenses that your health insurance does not cover, if you or your passengers are injured in a boating accident, regardless of fault.
- Physical damage insurance: This insurance covers the cost of repairing, or replacing, your own boat if it is damaged in a boating collision, regardless of fault.
- Equipment insurance: This insurance covers loss or damage to any equipment and accessories that were not installed on the watercraft by the manufacturer but were added later. This includes items such as boat hoists, GPS units, marine instruments, and kicker motors.
- Personal effects insurance: This insurance covers personal items, such as fishing gear, water skis, SCUBA gear, cameras, cellphones, and portable speakers, if your property is lost, damaged, or stolen.
- Uninsured boater insurance: This insurance covers your property damage and medical costs, if you are in a boating accident that was caused by an uninsured or underinsured boater.
- Towing insurance: This insurance covers the cost of having your boat towed back to shore, if it becomes disabled while out on the water, such as if you experience engine failure or steering problems.
- Fuel spill/wreckage cleanup insurance: This insurance provides you with the funds and resources necessary to remove wrecked boats and debris from the water and clean up any resultant fuel spills, if you are responsible for a boating accident.
- Actual Cash Value or Agreed Value: There are two ways to determine the value of the boat. One way is the actual cash value, or the value of the boat at the time of claim, which considers depreciation and may result in a lower premium. The other way is the agreed value policy, which will secure the amount you can receive for your boat if a total loss occurs, regardless of depreciation. However, in some cases, partial losses may be depreciated.
- Comprehensive insurance: This insurance covers the cost of repairing, or replacing, your own boat if it is damaged in a non-collision event, such as a wildfire or flood..
Insurance rates for boats depend on certain factors like:
- The type of boat you are insuring (e.g., speedboat, fishing boat, cabin cruiser, yacht, etc.)
- Details about your boat (value, age, length, and engine size, etc.)
- Where you will be keeping your boat when not in use
- Your driving record and claims history (both on and off the water)
- Whether you have completed a boating safety course
- The amount of coverage you are purchasing
- The size of your deductible
However, certain things, such as normal wear and tear, damage to the boat's trailer, damage caused by mold, insects, marine life and animals, and faulty machinery, is not covered by California and Arizona boat insurance.