Some of our companies may provide limited coverage for property damage for small boats such as canoes and small sail boats or small power boats with less than 25 mile per hour horse power under a homeowners or renters insurance policy.  Coverage is usually about $1,000 or 10 percent of the home's property value and generally includes the boat, motor and trailer combined.  Liability coverage is typically not included but it can be added as an endorsement to a homeowner’s policy.  Check with your insurance professional to find out if your boat is covered and what the limits are.

Larger and faster boats, yachts, and personal watercraft such as jet skis and wave runners require a separate boat insurance policy.  The size, type and value of the craft and the water in which you use it factor into how much you will pay for insurance coverage.

For physical loss or damage, coverage includes the hull, machinery, fittings, furnishings and permanently attached equipment for an agreed value.  These policies also provide broader liability protection than a homeowner’s policy.

Most companies offer liability limits starting at $15,000 and can be increased to $300,000.  Typical policies include deductibles of $250 for property damage, $500 for theft and $1000 for medical payments.  Higher limits may be available.  Additional coverage can be purchased for trailers and other accessories.  Boat owners may also consider purchasing an umbrella liability policy, which will provide additional protection for their boat, home and car.

Boaters should also inquire about special equipment kept on the boat, such as fishing gear, to make sure it is covered and verify that towing coverage is included in the policy.

Boat insurance also covers:

Bodily injury—for injuries caused to another person.
Property damage—for damage caused to someone else’s property
Guest passenger liability—for any legal expenses incurred by someone using the boat with the owner’s permission.
Medical payments—for injuries to the boat owner and other passengers.
Comprehensive—for damage to your boat caused by other than collision, such as fire, theft or vandalism.  If you hit an animal, or if your boat is flooded or stolen, Comprehensive coverage will apply.
Collision—for damage to your boat when you collide with another boat or object.  If you hit a boat, a pole or nonliving object Collision coverage will apply. You have three options to insure your boat for physical damage against a total loss:

• Actual Cash Value:  A base policy that pays the market value of your boat at the time of loss.
• Agreed Value:  Pays the value of your boat that you select at the start of your policy, regardless of the current market value.
• Total Loss Replacement Cost:  Pays for replacement of your boat with the newest model if your boat is declared a total loss within its first five model years.

Some policies also include options for specialized coverage, such as Roadside Assistance, On-Water Towing and more: 

Roadside Assistance—Roadside Assistance coverage provides towing to the nearest qualified repair facility and covers necessary labor at the time and place of disablement when the tow vehicle or boat trailer is disabled due to any of the following:

• Mechanical or electrical breakdown
• Battery failure
• Insufficient supply of fuel, oil, water or other fluids
• Flat tire
• Lockout
• Entrapment in snow, mud, water or sand within 100 feet of the roadway

This coverage extends to the tow vehicle while transporting the insured boat/PWC, even if the tow vehicle is insured with another insurance company.

On-Water Towing and Labor Coverage Service— With On-water Towing and Labor, $300, $500, $1,000 per occurrence is paid toward towing and labor costs, depending on the amount of coverage chosen.  Labor coverage applies when work is performed at the time and place of disablement, while the boat is in the water.  On-Water Towing and Labor Coverage is reimbursement coverage.

Ask your insurance professional about boat insurance rates and discounts!

NOTE: Portions of the above information have been graciously provided by The Insurance Institute. These definitions are not applicable in all states or for all products.  This is not an insurance contract.  Other terms, conditions, and exclusions apply.  Please read your policy for full details about the coverage’s.  These definitions do not alter or modify the terms of any insurance contract.  If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.