There are many hidden costs associated with owning a boat: dock fees, general maintenance, winter storage and more. One expense boat owners should never skimp on is purchasing a strong insurance policy for their watercraft.
Because buying a boat is a large investment, owners should protect it with comprehensive coverage. Many homeowners and renters policies offer only limited protection — often only for small sailboats or boats with engines under 25 horsepower — and typically do not include liability coverage unless you buy an endorsement.
Owners of larger, more powerful boats and yachts generally need a separate boat insurance policy; for examples and options, see Powerboats Insurance.
Separate boat and watercraft policies provide broader protection for the hull, machinery, furnishings, fittings and permanently attached equipment such as navigation systems. Learn more about general watercraft coverage at Watercraft (Boat & PWC) Insurance.
Liability coverage
- Bodily injury to other persons
- Damage to another person's property
- Legal expenses from non-consensual operation of the boat
- Medical costs for the owner and passengers
- Boat theft
Policy limits are selectable and commonly range from about $15,000 up to $300,000. Typical deductibles might be $250 for property damage and $500–$1,000 for theft or medical payments. Policies can be tailored with endorsements to cover trailers, fishing gear, electronics and other accessories; be sure to ask whether coverage applies while the boat is being towed.
Insurers often offer discounts for safety-related reasons. For example, diesel engines are frequently favored because diesel fuel is less volatile than gasoline, and having Coast Guard–approved fire extinguishers, ship-to-shore radios, or completing an approved boater safety course can lower premiums. If you own a personal watercraft, compare options such as Personal Watercraft (PWC) Insurance.
Maintaining a clean boating record is important; many companies reduce premiums for every two years without an accident or claim. Bundling watercraft coverage with homeowners and auto policies is another common way to save. To compare options and coverage details, talk to an agent.
A solid insurance policy gives boaters the peace of mind to enjoy the water, knowing their investment and liability exposures are protected.
Frequently Asked Questions
Does my homeowners policy cover my boat?
Often only small boats or those with very low-power engines receive limited coverage under homeowners or renters policies, and liability is usually excluded without an endorsement.
What is typically covered by a separate boat insurance policy?
Separate policies commonly cover hull damage, permanently attached equipment, liability for bodily injury and property damage, medical payments and theft, though specifics vary by insurer and policy.
How can I lower my boat insurance premium?
Install approved safety equipment, complete a boater safety course, maintain a clean claims record and consider bundling with other insurance policies to qualify for discounts.
Are trailers and fishing gear covered?
Trailers and gear are not always included automatically but can usually be added through endorsements or optional coverages on a boat policy.