Millions of Americans take to the water each year during boating season, traveling coastlines, rivers, lakes and canals. Watercraft range from simple rowboats and jet skis to small motorboats and luxury yachts.
The need for insurance protection when the boat is on the water is obvious, but many owners question the need for coverage during the off-season. Insurance is just as important when the boat is in storage as when it is in use.
Typical coverages
- Damage to the boat, motor, and trailer
- Damage to portable property used in the maintenance and operation of the boat, including anchors, life jackets, oars, tools, skis and surfboards, lights, and fire extinguishers
- Damage to other types of property, including sports equipment, clothing, and other personal effects
- Damage to equipment on shore, such as boat covers
- The cost of recovering a sunk or stranded boat
- The cost of emergency service and towing
- Damage to non-owned or substitute boats
- Loss of fishing tackle
- Liability coverage for injuries or damages for which the boat owner is legally responsible
- Coverage for injuries the boat owner or others on the boat suffer in an accident with an uninsured watercraft
Boat owners need these coverages if their boat gets into a collision with another vessel, if thieves take gear from it, or if fire damages the motor. However, losses can still occur while the boat is out of the water.
Progressive Insurance reports that nearly two out of every 10 boat claims it receives from northern states occur between Labor Day and Memorial Day, when most owners are not using their boats much.
Examples of off-season losses
- The building which houses the boat during the winter burns to the ground.
- Vandals damage the boat in the middle of the night while it's in the owner's driveway.
- A neighbor's child, playing in the owner's yard, runs into the boat stored there and injures his head.
- Someone steals the boat and its trailer from the yard at a repair shop.
- While the boat is stored in the yard, heavy snow melt causes a flash flood that damages the boat's interior, including the mechanical system and the radio.
Some companies offer "disappearing deductibles," where deductibles for collision and other damage losses decrease by a certain amount for every claim-free year. Those benefits are typically available only to owners who keep insurance continuously in force with the carrier.
One of our professional insurance agents can provide advice on the types and amounts of coverage a boat owner needs; you can also talk to an agent for personalized guidance. We can recommend companies that have boating expertise, good claims-paying practices, and reasonable prices.
Insuring a boat year-round can be expensive, but compared to the cost of a large uninsured loss, it may be worth the cost.
If you own a sailboat, see Sailboats insurance for coverage specifics that may apply to sailing craft. Owners of pontoon boats can find tailored information at Pontoon Boat Insurance.
Frequently Asked Questions
Does boat insurance cover theft while the boat is stored?
Yes, many policies cover theft of the boat and its equipment while in storage, but coverage can vary by policy and location.
Will my liability coverage apply if someone is injured while my boat is in my driveway?
Liability coverage often applies to injuries that occur on or from the boat even when it is on land, but check your policy limits and exclusions.
What is a disappearing deductible?
A disappearing deductible reduces the amount you must pay out of pocket for a covered loss for each year you remain claim-free with the insurer.
Do I need to insure portable equipment like life jackets and anchors?
Portable equipment is commonly covered under boat policies, but some items may have separate limits or require specific endorsements.