What does a standard boat insurance policy cover?

A watercraft policy covers the hull and motor for collision, fire, theft, and weather damage.

Does Georgia require liability insurance on a boat?

No. Georgia's boating regulations do not include a liability insurance mandate for recreational boats, though lenders financing a boat and some marinas commonly require it on their own.

Does boat insurance cover my boat while stored or on a trailer?

Yes. Most watercraft policies cover the boat while stored on your property, in a marina facility, or on a trailer.

What does boat insurance cover in Georgia?

A standard watercraft policy covers the hull and motor for collision, fire, theft, and weather.

What happens if a Georgia boat accident exceeds my liability limit?

When a Georgia boat accident's damages exceed the liability limit, the excess becomes the boat owner's personal financial responsibility unless an umbrella policy sits above it.

Boat FAQs

What is the difference between agreed value and actual cash value for boat insurance?

All FAQs

Quick answer: Agreed value pays the full insured amount with no depreciation if your boat is totaled or stolen.

What Is the Difference Between Agreed Value and ACV on a Boat Policy?

The difference comes down to how much your policy pays if your boat is totaled or stolen. With agreed value coverage, you and the insurer agree on a set dollar amount before the policy starts, and that is what you receive after a total loss, with no deduction for age or wear. With actual cash value, often shortened to ACV, the insurer pays what the boat is worth at the time of loss after subtracting depreciation. The same total loss can produce very different settlement checks depending on which basis your policy uses.

How Does Depreciation Affect an ACV Settlement on a Boat?

Boats lose value steadily as they age, so an ACV settlement on an older vessel can be far lower than what you still owe on a loan or what you expected to receive. A five-year-old boat that cost $50,000 new might carry only $30,000 in ACV by the time a claim occurs. That gap between ACV and your remaining loan balance is a financial exposure many boat owners do not realize exists until they file a claim. You can read more in our comparison of replacement cost versus actual cash value coverage, which explains the same concept across multiple policy types.

When Does Agreed Value Make More Sense Than ACV?

Agreed value coverage removes the depreciation surprise. Because the payout is locked in when you buy the policy, you know exactly what you receive if the boat is destroyed or stolen. It typically costs a bit more in premium, but it protects you from a depreciated settlement on a boat that still carries significant value. Agreed value is popular for newer, well-kept, or higher-value boats where the depreciation gap would be most painful. You can compare this to how collector auto insurance handles agreed value for classic vehicles, since the logic is similar. For an older boat with modest value, ACV can be a reasonable, lower-cost choice where the gap between the two bases is small.

How Do Partial Losses Work Under Each Settlement Basis?

One detail to confirm is whether agreed value applies to a partial loss or only a total loss. Many boat policies pay agreed value when the boat is completely destroyed but settle smaller repair claims differently, sometimes applying depreciation to specific components like sails, canvas, or an outboard motor. Knowing how partial claims are handled prevents a surprise when a repair bill comes in lower than expected. The specialty personal insurance FAQ covers other nuances of boat and watercraft coverage worth reviewing before you buy.

Which Settlement Basis Is Right for Your Boat?

For example, a Lake Lanier owner insures a five-year-old boat under an agreed value policy written for $45,000. After the boat is destroyed in a marina fire, he receives the full $45,000. A neighbor with the same boat on an ACV policy receives roughly $30,000 after depreciation, leaving a $15,000 shortfall when replacing it.

For example, an older aluminum fishing boat worth $8,000 insured under ACV may carry only a $1,000 to $2,000 depreciation gap, making the higher agreed-value premium far less compelling. The right choice depends on the boat's age, condition, and your remaining loan balance.

The settlement basis is one of the most important choices on a boat policy and easy to overlook at purchase time. A free coverage review confirms how your boat is currently valued and whether the right basis is in place.