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Is boat insurance for salvage boats more or less expensive than insurance for other types of boats?
For those who want to save money by purchasing a salvage boat, it’s a pertinent question.
Higher Risks, Higher Costs
The insurance on a salvage boat can be higher than insurance on a standard vessel, depending on several factors.
If the boat was damaged severely, then it may be more expensive to insure the boat because there is more chance of those repairs not holding. The more severely a boat was damaged, the more chance of it having higher rates because the risk of the boat falling apart is higher.
Some insurance companies won’t even consider insuring a salvage boat.
Documentation Is Valuable
In order to have a better chance of insuring a salvage boat, keep documentation, including photographs, of the boat, the damage it sustained, and the restoration process. If you want to be safe , submit photos and proposed restoration plans to a marine insurance company before you begin the restoration process and see if the boat would be insurable.
In Case of No Insurance
If a company refuses to insure a salvage boat, see if they will at least give you liability only insurance. That way you will be covered in the event that you damage someone else’s boat, but the insurance company doesn’t accept the risk of your own boat’s falling apart.
