What Does Boat Insurance Cover?

Boat insurance contains coverage types to help in different situations, much like car insurance.

​

Property coverage for boats

Property coverage protects the boat against theft and damage due to an accident or sinking. The coverage usually applies to the boat whether it’s on land or water.

You can choose between actual cash value or agreed value, also called replacement cost coverage, in the event your boat is totaled or stolen. The coverage you choose influences your costs and decides how much the insurance company will pay if you file a claim later.

​

Liability insurance for boats

If your boat damages someone else’s property, such as another boat, or injures someone during an accident, your liability insurance pays their damages. It can also cover problems caused to others by your watercraft, such as a large wake. Liability insurance also covers your legal fees if you’re sued over a problem covered by the policy, such as a boating accident.

​

Medical payments coverage

If you or your passengers are injured in a boating accident, medical payments coverage pays for your medical bills.

​

Uninsured watercraft coverage

If an uninsured boater strikes your boat, uninsured watercraft coverage pays your medical bills.

​

Boat insurance add-ons

As a boat owner, you may need to purchase additional insurance such as coverage for:

• Boat trailers

• Towing

• Special equipment such as fishing gear

• Boating accessories such as radar

• Dock contract liability

• Fishing guide coverage

• Ice and freezing coverage

• Mechanical breakdown

• Personal property

It’s also important to investigate coverage for fuel spills or wreckage removal in case an accident occurs on the water.

Related: Best boat insurance companies

​

What Does Boat Insurance Not Cover?

All boat insurance policies will have exclusions. Some common examples are:

• Wear and tear from regular boat use

• Manufacturer defects

• Faulty boat design

• Corrosion

• Overuse

• Bug destruction

• Mold damage

• Damage from creatures or aquatic life