Boat insurance is a type of insurance which covers certain costs associated with loss or damage a boat or its contents may sustain during an accident. There are numerous types of boat insurance, and policies tend to differ in coverage and exclusions. Typical boat insurance covers liability and physical property. Injury liability protects the insured in an accident which they have caused and covers medical bills, pain and suffering, defense costs and lost wages sustained by the injured party. Damage liability covers casualty which may results from an accident with another boat, dock or other structure. The physical damage portion of a boat insurance policy ensures that the boat of the insured is covered for repairs or replacement should the boat owner be responsible for damage to their watercraft.

There are several ways in which physical damage claims can be handled, and it is up to the insured to select the method which is most appropriate at the time the boat insurance policy is initiated. A claim may be satisfied by either the cash value, agreed value, or replacement value of the watercraft. Cash value entitles the insured to the market value of a boat or its parts at the time of loss, while replacement value provides the insured with a new version of the damaged boat and typically requires an applicable boat be less than 3 years old. Agreed value is a coverage amount predetermined by both the broker and the insured, regardless of market or replacement value.http://www.mass.gov/?pageID=ocaterminal&L=4&L0=Home&L1=Consumer&L2=Insurance&L3=Boat+Insurance&sid=Eoca&b=terminalcontent&f=doi_Consumer_css_boat_guide_section2&csid=Eoca Additional coverage for uninsured boaters, fishing equipment , roadside and waterway assistance or fuel spill removal may be necessary depending on certain circumstances and may be purchased in conjunction with a basic boat insurance policy.http://www.scinsuranceagent.com/blogs/boat-insurance-get-facts