When dealing with boat insurance it's important to remember several key points. First, you'll need to find an agent who's familiar with marine insurance. Your policy will be put together based on your individual needs. There are various types of coverage available. To begin with, the insured value of your boat can be an agreed value or actual cash value. With agreed value coverage, the boat owner will be paid the insured value of the boat in the event of a total loss. The insurance company will not depreciate the value at the time of the loss. In the event of a total loss with actual cash value, the boat owner will receive the insured value of the boat or the actual cash value or depreciated value, whichever is less. For example, if you have your boat insured for seventy-five thousand dollars and have a total loss, the depreciated value of your boat may only be sixty-five thousand and the insurance company will pay the lesser amount. The broadest form of liability coverage is protection and indemnity liability coverage. This generally offers coverage for bodily injury, property damage, death on the high seas, wreck removal, if your vessel is sinking, and negligence for unseaworthy vessels. Watercraft liability generally covers bodily injury and property damage. Medical payment coverage usually covers the insured and guests who are injured while on board the boat, boarding, or departing from the boat.