What does boat liability insurance cover? This essential protection for boat owners can help reimburse you for lawsuits related to boating incidents and more.
Does car insurance cover towing a boat? Learn the answer and more about this critical coverage in case your boat becomes disabled on the water and must be towed to a repair facility.
A commercial boat insurance policy provides protection for boats used for commercial or business purposes. Learn about the different coverages needed for commercial boats vs. personal watercraft.
What is the average cost of boat insurance? Learn the cheapest and most expensive states for coverage and how you can find affordable boat insurance with the help of an independent agent.
In need of boat insurance? Find the right boat insurance policy for your unique vessel by browsing coverage options by boat type. An independent agent can help you get coverage today.
Searching for boat insurance? Find out how to compare boat insurance companies and how to properly evaluate your coverage needs so you can get set up with the best possible policy.
Looking for affordable boat insurance? Learn how to qualify for boat insurance discounts.
Learn how and when to file a boat insurance claim so you can quickly recover costs after an accident.
Find answers to your most frequently asked questions about boat insurance. Learn the basics of boat insurance, including what it covers, what's excluded, and which coverages you can add to your policy.
What Does Boat Insurance Cover?
A boat insurance policy is designed to cover your vessel from physical damage, and you as the owner against liability costs and medical expenses in case of an accident or another covered event. The boat insurance coverages you have in your specific policy will determine exactly how you and your vessel are protected.
Coverage options also vary by vessel type, the waterway where you'll be operating your boat, and the carrier you get your coverage from. You can get answers to many of your questions about coverage by visiting our boat insurance FAQ.
Physical Damage Coverage (Hull Coverage)
Physical damage coverage in boat insurance is the combination of collision and comprehensive coverage. This section of your boat policy covers the following components and perils:
- Hull
- Motor
- Permanently attached equipment
- Fire damage
- Theft and vandalism
- Severe weather damage
- Collisions
Essentially, physical damage coverage can help pay to repair your boat if it's damaged by a collision or another covered non-collision event, such as fire or a theft. This aspect of your coverage works similarly to car insurance. Ask a local independent insurance agent to help you get set up with hull coverage in your boat insurance policy.
Collision coverage
Boat collision coverage can reimburse you for physical damage caused by collisions with another boat or object, such as a dock. It can pay to repair your vessel if you make contact with another boat, watercraft, or a submerged object. It works similarly to how collision coverage operates in auto insurance.
Comprehensive coverage
Comprehensive boat insurance coverage can reimburse you for physical damage caused by non-collision events, such as theft, vandalism, fire, lightning, and severe weather. It can help pay to repair your vessel for many types of damage that aren't caused by boating collisions. It works similarly to how comprehensive coverage operates in auto insurance.
Boat Liability Coverage
Boat liability coverage can pay for the cost of bodily injuries and personal property damage you cause third parties with your boat. If you're found to be at fault for an accident or another incident involving your boat and other people or their property, this coverage can pay for medical expenses and the cost of repairs to docks, pilings, and other vessels.
Standard boat policies typically offer boat liability coverage limits of $300,000-$500,000. This section of your boat policy works similarly to how liability coverage operates in auto insurance.
Medical Payments Coverage
Boat insurance medical payments coverage can reimburse you for medical expenses for you and your passengers after a boating accident, regardless of fault. Typically, there are no deductibles to pay or network restrictions applied when getting covered treatment. It works similarly to how medical payments coverage operates in auto insurance.
Uninsured and Underinsured Boater Coverage
Uninsured boater coverage protects you against financial losses if you're in an accident with an at-fault boater who doesn't carry sufficient or any insurance of their own to properly reimburse you. This coverage pays for bodily injuries to you and your passengers up to specified limits.
The required coverage amount varies by location. This section of your boat policy works similarly to how uninsured motorist coverage operates in auto insurance.
Personal Effects Coverage
Boat insurance personal effects coverage can reimburse you for your personal belongings kept aboard your vessel, such as clothing, cell phones, sunglasses, fishing gear, and boating equipment. It can reimburse you for theft, vandalism, fire, and physical damage or destruction to your personal property, and pay for repairs or replacements of these items.
Your homeowners insurance policy may offer partial protection for your personal items aboard your vessel, but your boat insurance policy fills the gap in this coverage.
Boat Towing and Assistance Coverage
Boat towing insurance coverage can pay for the cost of on-water towing services to haul your vessel to repair facilities if it breaks down. It can also cover the cost of gas delivery, but not the fuel itself, and jump-starts if your vessel is disabled.
You can typically add on-road trailer towing coverage for an extra cost. This section of your boat policy works similarly to how roadside assistance coverage operates in auto insurance.
Accidental Fuel Spill Liability Coverage
Boat insurance fuel spill liability coverage can pay for the cost of cleanups and third-party liability for accidental fuel or oil spills on the water. If your accidental oil or fuel spill causes property damage or bodily injury to others, this coverage can pay for those expenses. Accidental fuel spill liability coverage is often included in base boat insurance policies by major carriers, such as Travelers.
Agreed Value vs. Actual Cash Value
Agreed value, also often called agreed hull value (AHV) coverage, is an option that allows you to pay a pre-set replacement amount with limited depreciation for a higher premium after a loss. Actual cash value (ACV) coverage factors in depreciation after a loss.
ACV policies offer lower premium rates but a higher potential out-of-pocket cost if you need to make repairs. An independent insurance agent can help you choose between agreed value vs. actual cash value boat insurance to get the policy that works best for you.
What Boat Insurance Does Not Cover
Boat insurance policies won't cover every possible peril. It's helpful to be aware of these common boat insurance exclusions before you ever try to file a claim:
- Normal wear and tear
- Insect and mold infestations
- Marine life damage
- Manufacturer defects
- Ice/freezing damage (depending on the policy)
- Unnamed operator damage or liability
Ask an independent insurance agent to review your boat insurance policy with you so you can be certain of its specific exclusions. Your agent can also help you file boat insurance claims if the time comes.
FAQs About Boat Insurance Coverage Types
What are the main types of boat insurance coverage?
Physical damage, liability, medical payments, uninsured/underinsured boater, personal effects, and towing. Learn more about the specific coverage you need by visiting our boat insurance FAQ.
Is boat insurance required by law?
Only in Utah, Hawaii, and Arkansas, currently. Most states don't require boat insurance, but marinas and lenders commonly do if you dock or finance your boat. Confirm your potential boat insurance coverage requirements with an independent insurance agent.
What is the difference between agreed value and actual cash value boat insurance?
Agreed value coverage pays a pre-set amount with limited depreciation after a loss, while ACV coverage deducts depreciation, resulting in lower premiums but potentially higher out-of-pocket costs after a loss.
Does boat insurance cover passengers?
Yes. Medical payments coverage and uninsured/underinsured boater coverage can both extend to your passengers, depending on the specific policy and state requirements.
What does boat liability insurance cover?
Bodily injuries and property damage to third parties, including damage to docks and other vessels, after an incident you cause with your boat.
Does boat insurance cover theft?
Yes, if physical damage (comprehensive) coverage is included in your policy. Theft of the entire vessel or permanently attached equipment is also typically covered. However, you'll need personal effects coverage to have full protection for your personal items kept aboard your boat.
Can I add coverage for fishing equipment on my boat policy?
Yes, most policies can include fishing gear as a personal effects add-on. An independent insurance agent can tailor coverage based on your equipment's value.
Does my homeowners insurance cover my boat?
It's possible it offers limited coverage. Homeowners policies may cover small craft (i.e., canoes, small sailboats, and powerboats under 25HP) with limited property coverage and typically no liability coverage. Larger or motorized vessels require a separate boat insurance policy.
Get Help Now from an Independent Insurance Agent Near You
When you're ready to find the right boat insurance policy, your best option is to work with a local independent insurance agent. These agents match boat insurance coverage to vessel type, usage pattern, and budget. They can shop for the best rates and coverage fit from multiple carriers near you.
Your agent knows which boat insurance companies offer the coverage you need at an affordable price. They'll help you get set up with all the types of boat insurance coverage you need.
Sources
https://www.iii.org/article/boat-insurance-and-safety
https://www.discoverboating.com/resources/boat-insurance-coverage
https://www.travelers.com/boat-yacht-insurance/coverage