High Performance Boat Insurance - 2 Exceptions To Coverage

High performance boat insurance is necessary for any owner of a speed or performance boat. The risks associate with owning and operating these boats necessitates some amount of boat insurance in the event that any loss is incurred die to damage or theft. The insurance can even provide coverage for the cost of salvaging a performance boat that is destroyed in an accident.

High performance boat insurance is similar to other forms of boat insurance. It offers protection for any loss to the hull and machinery that operated the boat. The chief difference between high performance boat insurance and other types of boat insurance is the cost. An individual who purchases a high performance boat insurance policy should expect to pay more for coverage than the purchaser of a traditional boat owner.

Two Exceptions to coverage include self-insurance, where the high performance boat owner covers the cost associated any loss and purchasing a cheap or low-cost high performance boat insurance.


Self-insuring involves putting aside an amount into a side fund. This side fund can be used to meet any claims experienced from a loss due to damage to the hull, any machinery or any other loss.

The advantage of self-funding is that is allows the owner of the high performance boat to contain the risk personally and not have to rely on the insurance company to meet claims when they rise. A disadvantage however is that the owner of the high performance boat needs to have a reserve amount set aside that is large enough to meet their expected claims experience, which may exceed their available capital.

Low-Cost Insurance Options

The high performance boat owner can choose to purchase a low-cost or cheap high performance boat insurance policy that provides basic coverage limits but may require the boat owner to meet any unmet amounts or other coverage not provided for in the policy. Elements of a cheap high performance boat insurance policy includes high deductibles, low coverage limits for hull and machinery damage and limited liability amounts for damage due to operator error. The policy may also use an actual value versus agreed valuation method to lower the policies premium cost.  

The advantage of having a cheap high performance boat insurance policy is the cost. The policy will be affordable and available at a premium cost that is much less than a policy that has more benefits. The chief disadvantage with having a low-cost policy is that level of coverage may be inadequate for the needs of the high performance boat owner.

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