- There are typically two common types of liability coverages on a boat insurance policy: watercraft liability and medical payments. Watercraft liability provides coverage in the event of an accident that causes injury. Medical payments coverage pays medical expenses up to the policy limits for anyone who is occupying a boat when an accident occurs.
- When a boat becomes disabled on the water, coverage is available for the towing service and any labor required on site. This type of coverage is usually offered as a reimbursement coverage. This means the cost of the service must be paid first, and then the insurance company sends the reimbursement. This coverage can come in various amounts that range from $300 up to $1,000 for each occurrence.
- This coverage is based on an agreed or actual value amount that is stated on the policy. If damage occurs to the boat that results in a complete loss, the policy pays the full amount that is stated on the policy. Some policies may also replace the boat with a new one--many times with a boat of the same make and model.
- Many people who own a boat trailer it from location to location on the weekends or while on vacation. This particular coverage is typically included on most types of policies for pleasure boats or personal watercraft with a trailer. Roadside assistance covers the cost of replacing a flat tire as well as towing to a repair shop.
- Depending on the type of boat policy that was purchased, additional coverages may be available. One type of coverage is for reasonable repairs, such as dents and scratches that can occur in the course of use. An additional coverage that may be available is wreck removal. This coverage pays for the removal of a boat if it sinks from damaged caused by an insured peril.
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