Shopping around for boat insurance in Texas? Then you need to know what types of boat insurance policies are available in the Lone Star State. Keep reading to learn more.
The Types of Boat Insurance Available in Texas
There are three basic types of boat insurance policies available in Texas: replacement cost, actual cash value, and agreed amount value. Let’s take a closer look at each one of these categories.
1. Agreed amount value
If your boat is damaged or destroyed, an agreed amount value policy pays to repair or replace it up to a limit stated in your policy
2. Replacement cost
If you have an accident, a replacement cost boat insurance policy reimburses you for the cost of repairing your boat to its original condition or replacing the boat with a similar model.
3. Actual cash value
This type of policy pays to repair or replace your boat minus depreciation.
The term “depreciation” refers to the fact that, just like cars, boats lose value over time. Actual cash value policies take this loss of value into account.
So, for example, if you bought a boat for $45,000 ten years ago, its value today may be around $25,000. So your policy would pay up to $25,000 to repair or replace your boat.
Learning More About Boat Insurance
By knowing which type of boat insurance policy you are purchasing, you will know what to expect should you have an accident.
It’s essential to take the time to read your policy and make sure you understand its terms and conditions.
If you have questions about boat insurance in Texas or need help building a personalized policy, contact BZ Bee Insurance Services. Our experts will be happy to answer all your questions.
For more useful tips about boat insurance, check out our previous posts, “What Are the Requirements for Boat Insurance in Texas?” and “Some Ideas To Save on Boat Insurance.”
Looking for Boat Insurance in Houston, Texas? Contact BZ Bee!
When it comes to boat insurance in Houston, or anywhere else in Texas, BZ Bee Insurance Services is the way to go.
We understand the needs of boat owners and go out of our way to help you find coverage that meets your needs.
To get a free quote, just contact us by email (ayalamariaeugenia@yahoo.com) or telephone (832-729-8114), or fill out the contact form on this website.
