to me from the insurance companies perspective. When you decide to abandon in a storm or plow into a 10K boat at a dock
and that guy tries to collect 35K in damages. (Both current/ recent threads)
Personally, I think it's best to limit your vessel price
to no more than 5-10% of your assets and forget about the insurance. But then you're sorta screwed if you have a 400K boat and no liability cover (as you're an easy target for that 10K boat guy) and liability only can be hard to get.