Boat Insurance
Marine insurance covering watercraft, liability, and on-water accidents.
Typical cost: $300 – $2,500 per year
What Is Boat Insurance?
Boat insurance—sometimes called watercraft insurance or marine insurance—provides financial protection for boat owners against property damage, theft, and liability arising from boating activities. Whether you own a small fishing boat, a pontoon, a sailboat, or a yacht, a dedicated marine policy covers risks that homeowners insurance typically excludes or severely limits.
Agreed Value vs. Actual Cash Value
One of the most important decisions when buying boat insurance is choosing between agreed value and actual cash value (ACV) policies. An agreed value policy pays a pre-determined amount if the boat is totaled, with no depreciation deduction. ACV policies pay the current market value minus depreciation. Agreed value costs more but eliminates disputes over your boat's worth at the time of a total loss.
What Boat Insurance Covers
Comprehensive boat insurance typically covers physical damage to the hull, motor, and permanently attached equipment; liability for bodily injury or property damage you cause to others; medical payments for passengers; uninsured boater protection; fuel spill liability; and wreck removal. Many policies also cover the boat trailer and allow you to add fishing equipment, watersports liability, and towing on water.
Navigation and Seasonal Limits
Policies define navigational limits—geographic waters where coverage applies. Coastal policies may restrict you to a certain distance from shore, and inland policies may only cover specific lakes and rivers. Most policies also have a lay-up period during winter months when the boat is out of the water, during which liability coverage is suspended but physical damage protection continues.
What's covered
Hull Coverage
Pays to repair or replace your boat's hull, deck, and permanently attached equipment after covered damage.
Motor & Machinery
Covers the engine, outdrive, and mechanical systems against breakdown, collision, and submersion damage.
Liability Protection
Covers bodily injury and property damage you cause to others while operating your boat.
Medical Payments
Pays medical expenses for you and your passengers injured in a boating accident.
Uninsured Boater
Protects you if you are injured by another boater who carries no liability insurance.
Fuel Spill Liability
Covers cleanup costs and environmental fines if your boat causes a fuel or oil spill.
Wreck Removal
Pays the cost of removing your boat if it sinks or is grounded in a navigable waterway.
Trailer Coverage
Protects the trailer used to transport your boat against collision and comprehensive damage.
On-Water Towing
Covers the cost of towing your disabled boat to the nearest marina or launch.
Specialized coverage
Explore specific boat insurance options.
Sailboat Insurance
Coverage for sailing vessels of all sizes.
Pontoon Boat Insurance
Insurance for pontoon boats and leisure craft.
Yacht Insurance
Comprehensive coverage for yachts and large vessels.
Jet Ski Insurance
Protection for personal watercraft and jet skis.
Fishing Boat Insurance
Coverage for fishing boats and equipment.
Kayak & Canoe Insurance
Affordable coverage for non-motorized watercraft.
Pros and cons
Advantages
- Protects a significant recreational investment against total loss
- Liability coverage shields your personal assets on the water
- Agreed value policies guarantee full payout for total losses
- Covers fuel spill cleanup which can cost tens of thousands of dollars
- On-water towing prevents expensive emergency rescue bills
- Trailer coverage included or available as an add-on
- Many policies offer disappearing deductibles for claim-free years
Considerations
- Navigational limits restrict where you can take the boat
- Premiums increase with boat size, speed, and horsepower
- Wear and tear, marine growth, and gradual deterioration excluded
- Hurricane and named-storm deductibles can be very high in coastal areas
- Lay-up periods suspend liability coverage during storage months
Frequently asked questions
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