Boat ownership involves specific responsibilities, such as ensuring you have the appropriate insurance. If you’re new to boating or just exploring coverage options, you might encounter some unfamiliar terms. At Bingham Insurance Group in Braselton, GA, we believe understanding your policy is as important as having one. Let’s demystify some common boat insurance terms to help you confidently navigate.

Agreed Value vs. Actual Cash Value

One of the first distinctions in a boat insurance policy is whether it’s based on agreed or actual cash value. Agreed value means that you and your insurer agree on your boat’s worth when you purchase the policy, and that’s the amount you’ll receive if it’s declared a total loss. On the other hand, actual cash value factors in depreciation, so you may receive less if your boat is older or has experienced wear and tear.

Liability Coverage

Similar to auto insurance, liability coverage helps pay for damages or injuries you cause to others while operating your boat. It’s a vital part of your policy and ensures you’re not left covering the costs in the event of an accident.

Salvage and Wreck Removal

If your boat sinks or suffers severe damage, salvage and wreck removal coverage can help cover the cost of recovering or removing your vessel. While it might not be a frequent concern, it can be a financial lifesaver in the worst-case scenario.

Information about Boat Insurance in Georgia

Comprehending your coverage is the first step towards protecting your investment. At Bingham Insurance Group in Braselton, GA, we’re here to help you navigate the details and find the right boat insurance for your needs. Contact us today and let’s discuss your next adventure.