If you are financing your boat, you should insure it for at least the amount still owing on it. If in doubt, your marine insurance broker can give you a value range for your watercraft. You can also consult a boat dealer.
The best policies will cover your watercraft for what’s called an “agreed value.” Make sure you’re comfortable with this agreed-upon amount as it is the maximum amount you will receive in the event of a total loss. If your boat is less than 5 years old, it can make more sense to insure the craft either for its original purchase price or for its current market value. That way, depreciation will not apply on the amount you receive in the event of a total loss.
APRIL Marine assistance offers policyholders free appraisal of a watercraft’s sale or resale value to ensure the premiums you pay are always fair.