The hull deductible is the amount you will pay in the event of loss to the hull, machinery and equipment. Some boat insurance companies will use flat deductible amounts like $250, $500, $750 or $1000. Others will use a percentage of the boat value. 1% of the boat value or $250 is generally the minimum deductible available.

Insurance companies give a discount in premium if you agree to a deductible higher than the minimum. The savings in premium varies per company. Normally the largest percentage of savings comes between the $250 and $500 (1% and 2%) deductibles. So if you have a $40,000 boat and the minimum hull deductible is 1%, your deductible would be $400. Most insurance companies will require a higher minimum deductible as the boat ages. The minimum hull deductible may go from $250 to $500 or 1% to 2%.

Trailers, tenders and personal effects are not generally included in the hull deductible. These items have flat deductible amounts of $100, $250 or $500 and generally can not be changed.

Note of interest. Most boat insurance policies do not apply the hull deductible in the event of a total loss.

Review our in-depth Boat Insurance Guide.

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