Texas may not require boat insurance to operate your vessel, but that does not mean you should skimp on the coverage. Just as accidents can happen while driving a vehicle or at home, so too can they happen on the water. Furthermore, with boating exploding in popularity in recent years, accidents have exponentially increased. Protect yourself from liability to other people and their property and damage to your expensive watercraft through boat insurance. While Texas does not require boat insurance, if you financed the purchase of your watercraft, your lender is likely to mandate that you have coverage to protect their investment.
Similar to car insurance, most boat insurance policies include protection for a variety of causes of physical damage including storms, theft, collisions, and fires. In addition, as mentioned above, your policy will also include liability coverage to protect you from being sued or having to pay the medical bills of a third party in an accident that you caused. There are three main types of boat insurance policies. The first, replacement cost, will reimburse you for the full amount required to repair the boat to original condition or replace it with an identical model. The second, actual cash value, takes the depreciation of the boat into account and, if the watercraft is totaled, would pay out what the boat is worth at the time of claim; not when you first purchased it. The third type of boat insurance is agreed amount, where both the policyholder and the insurance company agree on the payout in advance.
At David King Insurance Services LLC in Coppell, TX, our friendly and professional team are ready to answer all your boat insurance questions. Give us a call today to learn more information and to schedule a consultation.