Insurance

Typical HO policies will cover up to 1k for a non-motorized vessel.

Clarification: HO policies typically do cover 1K, better policies cover up to 2k. Motorized or not, all policies cover the vessel BUT only if the vessel is on your premises and damaged by a peril covered by the policy. In other words it is not covered on the water.

The liability portion is usually very substantial - 300k or so.

Not exactly: The liability portion is the same as whatever liability limit you have on your HO's policy, from only 50k up to a Mil

The HO policy will cover you for any situation in which you are deemed liable.

True enough under the right conditions ONLY if it is a motorized watercraft of less than 50 hp or a sailing boat under 26 feet. These limitations vary by company but they are there. In other words, if your boat is over 26 feet or over 50 hp you better have a liability policy

It will not cover you for liability which there is special coverage available ie. auto liability.

True

Since boat liability only policies are not available HO policies will pay the claim.

Boat liability only policies are common. As Alan Ellis pointed out, his policy with Allstate is like $65 a year. Full coverage for the boat is just a little more, depending on how much you cover the boat for

Most boat policies are designed to protect your boat first and liability is a component of the coverage.

Hmm - Not sure that there is a first and second component. I see it the other way around since you can buy liability only but not physical damage only

Its important to remember that insurance agents make their money by selling you policies not by giving advice.

No ncmbm. (Are you still in the business?) Maybe this is true for a lazy agent but bad advice can cost an insurance agent plenty in Errors or Ommissions coverage. The agent makes money by giving the best advice possible within the constrains of what his company will underwrite. By giving good advice, his customers trust him and send referrals. New business is how the agent assures that he has a job for years to come.

No matter what you insure the boat for they will adjust for age, wear, etc.

True that. It's called Actual Cash Value. Just like a settlement on your car. UNLESS you pay for a replacement cost option which is available from some companies under specific conditions)

HO policies will also typically pay up to 1k for the damage to your own boat even if you where at fault, many times waiving the deductible.

Waive the deductible? The deductible always applies except for liability. The rest of the HO's covers my boat has been covered above.

Most boat policies have many exclusions to coverage and any claim over 5k will recieve substantial scrutiny. Racing is specifically excluded in some policies, especially racing motorboats. Premiums are reasonable for boat coverage is you feel its neccessary.

No arguement there except to say that most sail boat policys do not exclude Sail Boat Racing - BUT YOUR HOMEOWNERS DOES

I don't think its a smart investment for most recreational sailors unless the boat is subject to damage based on where its stored. For the majority the policy will never provide any needed coverage.

Well, it's a free country but I would let your insurance agent help you make that decision. Generally, I thing that last statement is bad advice.

Let your HO policy carry the load if possible,

Repeat : for Liability only and only if your boat fits your HO's coverage definition of what is covered under Coverage X, Family Liability AND you are not racing.

You have to carry that coverage it isn't an option. Spend the money you would have used on boat insurance and increase your retirement investments or increase your life insurance protection, or put those dollars into an account to provide self insurance and a new boat fund. My 2 cents.

Do the math ($50 or $65 a year for liability only coverage goes into $100,000 liability for 2000 years. Your 2 cents would take even longer