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For the cost of the insurance (my policy runs about $330.00 per year) it is well worth it. As said by many others above, it is not so much to protect yourself from the cost of repairing dings and dents, but if you sink and cause enviromental damage or damage to another persons boat / property. My yacht club requires it from all members too.
If you have homeowners insurance some companies will pick up the boat policy for you for next to nothing....might be worth looking into.
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