Whether you own a boat, a yacht, or a personal watercraft such as a jet ski, you should purchase insurance to protect yourself and your vessel. A watercraft insurance policy will help cover the cost of the damages and injuries you cause to another person or their property while operating your vessel, as well as the damages to your vessel and your medical expenses if you have purchased a full-coverage policy. Having the right coverage can save you from a financial headache after an incident. A-MAX understands this and can help you find the right coverage to fit your budget with just a few clicks. Contact us for a free quote!

What is Boat Insurance?

Boat insurance coverage is a contract between a watercraft owner and an insurance company that provides financial protection to the operator in case of a marine incident in which the boat or personal watercraft is damaged and if they injure others or damage their property while operating the vessel. The boat owner pays an agreed-upon premium to their boat insurance carrier so that the carrier will respond after a loss involving the insured vessel and will pay certain expenses based on the coverages you select on the policy.

Do I Have to Insure My Boat?

In the United States, only the states of Arkansas and Utah require boat insurance for most vessels. However, if you finance your boat, your lender will require that you carry full coverage on your boat. Additionally, if you plan to dock your boat at a marina, you will more than likely be required to show proof of at least liability coverage on your boat.

Does My Homeowner's Insurance Cover My Boat?

A standard homeowner's insurance policy may cover your boat if it's small and you do not need hull protection for the boat itself. A homeowner's policy will typically extend liability coverage to a boat but may have limitations depending on the size of the boat's motor and the boat's length. Homeowner's insurance will not extend to personal watercraft such as jet skis. Be sure to understand how your homeowner's insurance will cover your vessel before depending on the coverage the policy provides. To ensure that you have adequate coverage, it is best to consider a boat insurance policy rather than depending on the coverage that may be available through your homeowner's insurance policy.

What Does Boat Insurance Cover?

Boat insurance protects you and your vessel against potential losses. The coverages on a boat insurance policy include:

• Liability Insurance Protection: This is a 2-part coverage. The bodily injury liability will pay for the injuries you cause to another person while operating your vessel up to the policy limit. The property damage liability will cover the damage you cause to someone else's property up to the policy limit.

• Hull Insurance Coverage: If your vessel is damaged in an accident, or stolen, vandalized, or damaged by fire or weather, this coverage will pay to repair or replace your vessel. This coverage has a deductible that you will need to be prepared to pay out-of-pocket before your insurance company responds to the claim.

• Medical Expenses: If you elect to carry medical payments coverage on your policy, your insurer will pay for your and your passengers' medical bills from an accident up to the policy limit.

• Guest Passenger Liability: This coverage will pay for legal fees resulting from an incident in which someone other than you is operating your vessel with your permission.

• Uninsured Boater Protection: This coverage will extend to you or your passengers if you are injured in an incident with another vessel and the other operator does not have insurance or does not carry enough insurance to respond to your injuries.

• Trailer Coverage: If you use a trailer to transport your boat, you can add coverage for it to your boat policy.

• Personal Property: You can opt to insure any personal property that you bring onboard your vessel, or that you keep on the vessel, by purchasing this coverage. Some electronic equipment such as your radio or fish finder may need to be insured on a separate rider. Ask your agent or insurer if the policy limit is sufficient to cover the value of these items. 

• Emergency Towing Services: You can opt to purchase this coverage in case your boat needs to be towed or hauled out of the water due to impending severe weather.

How is My Boat Covered if it's Damaged?

If you have purchased hull protection coverage for your boat, your insurance company will pay to repair or replace your boat if it is damaged due to a collision, theft, fire, vandalism, or weather. Similar to auto insurance, your hull protection coverage will have a deductible that you will need to satisfy before your boat insurer will cover the claim. You can cover your boat under hull protection in two different ways:

• Actual Cash Value (ACV): This type of coverage will pay for the damage to your boat based on the value of the vessel at the time of the loss. If your boat is destroyed in an incident, your insurance company will determine the market value of the vessel and you will be paid based on that value.

• Agree Value: This type of coverage will pay you an amount agreed upon between you and your insurance company before a loss if the boat is destroyed in an incident. If the boat is damaged and can be repaired, your insurer will repair the boat but will reduce your loss payment based on the depreciation of the vessel.

Waters Navigated

When you purchase a boat insurance policy, your insurer will ask where the boat will be operated. Your insurance premium will be rated based on the waters that you navigate with your vessel. The further you travel with your boat, the more expensive the premium will be. If you operate your boat outside of the navigational limits established in your policy, your insurer may not cover a loss that occurs outside of the area you specified when purchasing your policy.

Lay-Up Periods

Most boat owners only operate their vessels when the weather is good. If you lay up your boat for a length of time throughout the year, your insurer may discount your boat insurance premium based on the lay-up period. Just keep in mind that if you have established a lay-up period with your insurer and operate the boat at a time when your vessel was supposed to be laid up, your insurance company may not cover the loss.

Marine Inspections

Your boat insurance company may require a marine inspection or survey of your vessel before agreeing to insure it. These reports are typically required on older boats to determine the vessel's condition and value. If you are purchasing an older boat, it is a good idea to have a marine inspection performed on it even if you are not required to do so. The inspection report will give you a comprehensive evaluation of the vessel and its value and will recommend any items that may need to be addressed to ensure that the boat is seaworthy.

Who Can Operate My Boat?

When you purchase your boat or yacht insurance, your insurer will require you to provide the names, dates, birth, and driver's license numbers of anyone who may operate your boat. Similar to auto insurance, your insurance premium will be based on the driving history of the operators listed. If you or any of the other operators of your boat have had moving violations or car accidents, these will be factored into your rate. If your boat is in a collision while being operated by someone other than a listed operator on the policy, your insurance company may not cover the loss. If you have purchased guest passenger liability coverage, you may have coverage for others to operate the vessel, but be sure to clarify this with your insurer before allowing anyone to operate the boat who is not a listed operator on the policy.

Keep in mind that anyone who does not meet the age and license requirements for your state may not be covered by your policy, even if you have guest passenger liability coverage. Your boat insurance may not cover underage operators in particular. Again, be sure to research the operator requirements of your state before allowing anyone other than you to operate your vessel.

How Much Does Boat Insurance Cost?

The biggest factor in determining your boat's insurance premium is the cost of the vessel itself. The more the vessel is worth, the more expensive it will be to insure. In addition, the size of the boat, the power of the motor(s), the waters you will navigate, and the age of the boat are rating factors as well. Your and your operators' driving history will impact the rate too. Your boat insurer will surcharge your policy if you or any of the other boat operators have a negative driving history including moving violations and car insurance claims.

You can save on your boat insurance premium if you qualify for various discounts including a multi-policy credit, responsible driver credits, and safety course credits. Be sure to ask your agent or insurer what discounts are available to make sure that you are getting all of the discounts that you qualify for.