Three things that separate boat policies from one another

Boat coverage in Florida is less standardized than home or auto, and the differences between policies matter more than most owners realize.

Navigational limits

Every boat policy defines where the boat is covered. Coastal cruising, inland waters, and distance offshore are all bounded, and coverage can stop at a line you were not aware of.

If you take the boat to the Keys, cross to the Bahamas, or run further offshore than usual, that is worth confirming beforehand rather than discovering afterward. Navigational limits are also seasonal in some policies, which matters during hurricane months.

Agreed value versus actual cash value

This is the single most consequential distinction in a boat policy.

An agreed value policy pays the stated amount if the boat is a total loss. An actual cash value policy pays depreciated value, determined after the loss.

Boats depreciate. On an older vessel the difference between the two can be substantial, and the owner typically finds out at the worst moment.

Wreck removal and fuel spill

Two coverages that are easy to overlook and expensive to be without.

If your boat sinks, you may be legally responsible for removing it, and that cost is independent of the boat's value. A sunken boat worth little can generate a large removal bill. Fuel spill liability works similarly.

Both matter more in Florida than in many places, given how much boating happens in shallow, environmentally sensitive water.

Hurricane haul-out

Some policies contribute to the cost of hauling the boat out ahead of a named storm. If yours does, know the terms in advance, because the moment you need it is not the moment to read the policy.

Where to start

Pull your current policy and look for three things: the navigational limits, whether it is agreed value or actual cash value, and whether wreck removal is included. Those three answers tell you most of what you need to know.

Related: Florida boat insurance, umbrella coverage above your limits, and storm season preparation.