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Boat Insurance Cover State Farm in California

What Does Boat Insurance Cover State Farm in California

Did you know that boat insurance is one of the earliest known forms of insurance? Ancient sailors knew firsthand about the risks of a life at sea and sought to Boat Insurance Cover State Farm in California hurricanes and other unpredictable weather and waters. And it still applies today.

Boat insurance policies can vary widely in what they do and do not cover based on a number of considerations, including the type of boat, the waters it will traffic, and how many months of the year the boat will be used. Still, there are a few basic kinds of coverage you can expect to receive, as well as some potential discounts for safe boaters.

When it comes to insuring your boat, it’s often best to separate your boat insurance cover in California from your homeowner’s policy. Many homeowners’ policies limit or don’t cover marine-specific risks, such as salvage work, wreck removal, pollution or environmental damage; but there are exceptions.

Many homeowners policies include perfectly good coverage for smaller boats and motors, usually with a horsepower limit of from 25- to 100-horsepower. While homeowners riders are normally adequate for these boats, be careful to ask the same questions you’d ask any other insurer about damages to your vessel and how they will be paid.

Also, most homeowners insurance riders apply only to use in inland waterways, lakes and rivers. Boat Insurance Cover State Farm in California extends outside a coastal inlet or along the beach. If you plan to boat “outside the inlet” you definitely need an experienced marine insurer. Many other factors will lead you to a qualified marine insurer, too, and here are the things to consider.

Insurance Factors

Insurers consider many factors when deciding whether or not to offer a policy. Almost any vessel can be insured— for a price. You want to consider the following to make sure the policy you purchase meets your needs:

  • Age of Boat
  • Length
  • Value
  • Speed/Horsepower
  • Condition (Does it meet US Coast Guard Standards in effect at the time it was built?)
  • Primary residence (If the boat is used as a primary residence)
  • Type (Inboard, Outboard, utility, cruiser, bassboat, saltwater fishing boat, performance boat)
  • Homemade (Boats without a serial number are tricky but many kits are okay)
  • Houseboats with no motor
  • Ownership (more than 2 owners)
  • Where it will operate (Ocean, lakes, bays, rivers, Great Lakes)

Types of Boat Insurance in California

There are two basic types of Boat Insurance Cover State Farm in California—“agreed value” and “actual cash value.” How depreciation is handled is what sets them apart.

An “agreed value” policy covers the boat based on its value when the policy was written. While it can cost more up front, there is no depreciation for a total loss of the boat (some partial losses may be depreciated).

“Actual cash value” policies cost less up front, but factor in depreciation. In other word, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss. Eventually, as your boat ages, your insurer will likely insist on an actual cash value policy—and if often gives a substantial savings.

What sets State Farm boat insurance apart in California?

  • We’ve got nearly 19,000 agents nationwide – chances are there’s one near you.
  • State Farm has been insuring customers since 1922.
  • We offer competitive rates and broad coverage options to meet your needs, including agreed value loss settlement for total losses.

State Farm typically insures against perils like sinking, fire, theft and storms, just to name a few. Check out more details on boat insurance, or talk to a State Farm agent for more information.

State Farm offers boat insurance for a wide variety of water-going types, like sailboats, fishing boats and even jet skis. Contact a local insurance agent for a quote today!

How much should I insure my boat for?

Boat Insurance Cover State Farm in California

You should Boat Insurance Cover State Farm in California for the amount it would cost you to replace it with like kind and quality. This is called “Agreed Value” or “Stated Value” coverage, and in the event of a total loss, will pay the full insured amount. Beware of policies providing “Actual Cash Value” (ACV) coverage, which means the value of your boat will be replacement cost less depreciation.

The following are standard coverages with standard deductibles and average limits:

  • Medical payments, $5,000
  • $1,000 limit Personal effects, $250 deductible
  • Uninsured boaters liability, between $300,000 and $500,000
  • $500 to $1000 limit Towing and assistance, no deductible
  • $1,000 limit Fishing equipment, $250 deductible

Most policies will allow anyone to operate your boat so long as you have given them permission. There are exceptions, of course, especially with high performance boats or personal watercraft so always read your policy. But beware, too many additional drivers often results in increased premiums.

Did you know that boat insurance is one of the earliest known forms of insurance? Ancient sailors knew firsthand about the risks of a life at sea and sought to Boat Insurance Cover State Farm in California hurricanes and other unpredictable weather and waters. And it still applies today. Boat insurance policies can vary widely…

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