Purchasing boat insurance requires some extent of knowledge. For example, as a boat owner you should be aware that the insurance you are about to get does not cover for your maintenance. Therefore you can forget about wear and tear and deterioration loss. Most insurance companies do not have a policy for boat maintenance. All materials with the latent ability to depreciate such as floorboards, canvas and upholstery are not covered by the boat insurance policy. In the same manner, damage resulting in vermin, moisture and mildew are also not included.

Stated Value Policy
Also called the Agreed Value, the Stated Value Policy refers to the mutual agreement between the boat insurance company and the policy holder regarding the value of the boat. Assessment is based on the condition of the hull, engine and other permanently affixed hardware. Generally, the value is determined by the purchase agreement of a brand new boat and by NADA Guide values. For used boats, it is usually based on the dealer purchase agreement.

Actual Cash Value
The Actual Cash Value refers to the value of the boat at the time of loss or damage. In this policy, the issue of boat depreciation comes into major play. When you claim this type of policy, the boat insurance company has the option to replace you with a boat which they deem to be of the same value as yours or with a check equivalent to what they deem your boat is worth after computing for depreciation. This will likely cause arguments or discussions regarding the valuation.

Exclusions
Always aim to get the least possible exclusions. Read the proposed boat insurance cautiously so that you can determine if the premium you will be paying is worth the coverage being offered. Most companies do not include coverage for damage caused by destructive underwater objects and freezing in icy weather.

Deductibles
Most insurance companies set the rate for deductibles at 2% of the hull value though you may opt to increase it in order to lower the cost of the premium and can be as low as $100. But then again, you will have to make sure that such boat insurance coverage is enough for the quality of your hull and trailer. Trailers have a separate listed deductible.

Liability
If the policy holder is found at fault in an accident, the liability policy will pay for expenses incurred in repair of damaged property and the medical expenses of the injured party. There are many types of liability policies found in boat insurance such as split limit, protection and indemnity, towing, pollution and navigation, among others.